Advancing Equal Pay in India: ILO and IFC Drive Action Through India Gender Collaborative

Under the banner of the India Gender Collaborative (IGC), the International Labour Organization (ILO) and the International Finance Corporation (IFC) jointly hosted an interactive session on “Equal Pay for Equal Work” on 26 June 2025. This seventh session of the IGC series brought together representatives from the private sector to unpack persistent gender pay gaps and share practical solutions to close them.

The session was led by Aya Matsuura, ILO Senior Specialist on Gender Equality and Non-Discrimination, who delivered a presentation titled “Towards Equal Pay for Work of Equal Value in India: Persistent Challenges and Emerging Solutions.” She underscored that despite legislative progress, India still faces gender wage gaps, with a 28% pay gap estimated in 2018–19 (NSSO)—a figure that widened further during the COVID-19 pandemic.

Participants enhanced their understanding on equal pay and actions required to eliminate gender pay gap based on the ILO Equal Remuneration Convention, 1951 (No. 100) and international experiences. They were also introduced to practical tools for detecting pay inequities.

Hang Vu, Gender and Economic Inclusion Department, IFC presented the business case for companies to actively address gender pay gap. She highlighted how equitable pay practices are not just a matter of social responsibility but also a strategic business decision, emphasizing the positive impact on workplace gender equality, and overall business performance. Drawing on examples from various sectors and markets, she emphasized practical steps that businesses could do to identify and close gender pay disparities within the organization.

Through interactive polling and group work, companies shared challenges and brainstormed actionable strategies for promoting pay equity within their workplaces. Some participating companies are already carrying out pay analysis and taking measures to promote pay equity, while there are companies that do not have a policy on equal pay. Some opportunities shared by participants included increasing the ratio of women employees in their organization as the first step to improving gender pay gap. Additional, suggested measures included improving awareness on equal pay among the leaders and employees, exploring a way to have compensation system transparent, and carrying out pay assessment, including assessment at the time of promotion.

This session forms part of the broader India Gender Collaborative (IGC)—a multi-stakeholder initiative launched in January 2024, supported by the Japan International Cooperation Agency (JICA). Anchored by IFC and implemented in collaboration with ILO, UN Women, and the World Bank India, the IGC supports Indian companies on their journeys toward greater diversity, equity, and inclusion.

Through monthly sessions covering themes such as inclusive hiring, psychological safety, gender-responsive leadership, and equal pay, the IGC offers member companies tools and technical guidance to translate gender commitments into workplace practice. The ILO’s leadership on equal pay supports this mission by connecting global labour standards with national efforts to create fair, inclusive, and productive workplaces in India.