Press release
Women in Sri Lanka paid 27% less than men, over 70% of Sri Lankan women of working age out of the labour force, ILO study finds
Gender pay gap due to bias and discrimination at work, and disproportionate and increasing unpaid care burdens among key reasons
2 April 2024
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Colombo (ILO News) - The International Labour Organization (ILO) released two evidence-based reports in a high-level consultation on 01 April 2024 – The Gender Pay Gap in Sri Lanka, and The Care Economy and Decent Work in Sri Lanka – addressing two key areas impeding women’s ability to get in, stay in, and progress in the labour force. Study findings call for a broader set of policies, a holistic approach, and effective implementation to close pervasive gender gaps in the world of work. This will make economic recovery more inclusive and build a strong foundation for sustainable economic growth.
The report on the ‘Gender pay gap in Sri Lanka' shows that women on average earn 27 per cent less than men for one hour of work. The gap is particularly large among women wage workers in the informal economy and among those with lower educational attainments. The gender pay gap in Sri Lanka is higher than the global average of about 20 per cent, and higher than the average for lower-middle income countries. The report further says that although differences in the endowments, job functions, and workplace characteristics contribute towards the observed gender pay gap, to a large extent in Sri Lanka it remains mostly unexplained and possibly driven by discrimination.
The report on ‘The care economy and decent work in Sri Lanka’ shows significant growth in the demand for unpaid care giving at the household level. Despite high levels of educational attainment, 73.5 per cent of Sri Lankan women of working age population were out of the labour force (compared to just 26.5 per cent among men), mainly due to their engagement in household duties, including care work. One third of Sri Lankans of working age are engaged in unpaid care work, of which one 3.5 million are women and 1.5 million are men, highlighting the gendered differences in the uptake of unpaid care duties. Despite the increasing demands for care, paid care workers are decreasing in numbers, their work is undervalued, and wage disparities exist between women and men care workers.
To address pay disparities and meet the growing care demands, the reports recommend a broad set of explicit policies which includes among others, introduction of pay transparency legislations, incentivizing firms to uphold the principle of equal pay for work of equal value; strengthening minimum wage systems and their effective implementation in the informal economy. Regarding care needs, the need for policy and legal environment which recognizes, reduces and redistributes unpaid care, along with rewarding and ensuring representation of care workers through unions and the promotion of care cooperatives and other collectivised models.
The high-level consultation and panel discussions included the participation of ILO’s constituents, Ministry of Labour and Foreign Employment, employer's and worker’s organizations, line ministries, development partners, academics, think tank and civil society organizations.
Delivering the opening remarks at the event Mr Marc-André Franche, UN Resident Coordinator, Sri Lanka said that existence and persistence of wage and other forms of labour market inequalities between men and women, across countries including Sri Lanka, indicates that the prosperity of recent decades has not been shared equally. He observed that finding solutions in this area, is critical to achieve gender equality and decent work and economic growth.
In her keynote address Ms Sukti Dasgupta, Director - WORKQUALITY, ILO Geneva highlighted that gender equality is rooted in the fundamental principles and rights at work, and is at the heart of ILO’s mandate. In the context of Sri Lanka, she said that crisis recovery action should give adequate focus to both equity and stability and must improve the labour market prospects of women. She also advocated for social dialogue and meaningful discussion on the draft employment bill for articulating a gender responsive and sustainable economic recovery.
Articulating the way forward Mr RPA Wimalaweera, Secretary, Ministry of Labour and Foreign Employment, stated that the consultation witnessed rich discussion and suggested several policy interventions, some of which, such as enhancing the level of minimum wages has already seen cabinet approval. He added, that going forward, government will consider all the policy areas highlighted in today’s consultation for promoting gender equality in the world of work.
Highlighting the importance of the event, in her closing remarks, Ms Joni Simpson, Director, ILO Country Office for Sri Lanka and the Maldives, reaffirmed that there are opportunity costs for not addressing these key areas. At this critical time, it is important to work together to close gender gaps so that Sri Lanka can make an inclusive and sustainable economic recovery. ILO is committed to working with all stakeholders to make the world of work more equitable for women to access and thrive in Sri Lanka.
The two reports can be accessed on the ILO Sri Lanka website The care economy and decent work in Sri Lanka: Opportunities, challenges and future trends The gender pay gap in Sri Lanka: A statistical review with policy implications
The ILO is the United Nations specialized agency for the world of work. It sets international labour standards, provides technical assistance, and engages in policy dialogue to address pressing issues related to employment, labour rights, and social protection. The ILO works closely with governments, employers' and workers' organizations, and other stakeholders to achieve its mission of advancing social justice and promoting decent work worldwide.
The report on the ‘Gender pay gap in Sri Lanka' shows that women on average earn 27 per cent less than men for one hour of work. The gap is particularly large among women wage workers in the informal economy and among those with lower educational attainments. The gender pay gap in Sri Lanka is higher than the global average of about 20 per cent, and higher than the average for lower-middle income countries. The report further says that although differences in the endowments, job functions, and workplace characteristics contribute towards the observed gender pay gap, to a large extent in Sri Lanka it remains mostly unexplained and possibly driven by discrimination.
The report on ‘The care economy and decent work in Sri Lanka’ shows significant growth in the demand for unpaid care giving at the household level. Despite high levels of educational attainment, 73.5 per cent of Sri Lankan women of working age population were out of the labour force (compared to just 26.5 per cent among men), mainly due to their engagement in household duties, including care work. One third of Sri Lankans of working age are engaged in unpaid care work, of which one 3.5 million are women and 1.5 million are men, highlighting the gendered differences in the uptake of unpaid care duties. Despite the increasing demands for care, paid care workers are decreasing in numbers, their work is undervalued, and wage disparities exist between women and men care workers.
To address pay disparities and meet the growing care demands, the reports recommend a broad set of explicit policies which includes among others, introduction of pay transparency legislations, incentivizing firms to uphold the principle of equal pay for work of equal value; strengthening minimum wage systems and their effective implementation in the informal economy. Regarding care needs, the need for policy and legal environment which recognizes, reduces and redistributes unpaid care, along with rewarding and ensuring representation of care workers through unions and the promotion of care cooperatives and other collectivised models.
The high-level consultation and panel discussions included the participation of ILO’s constituents, Ministry of Labour and Foreign Employment, employer's and worker’s organizations, line ministries, development partners, academics, think tank and civil society organizations.
Delivering the opening remarks at the event Mr Marc-André Franche, UN Resident Coordinator, Sri Lanka said that existence and persistence of wage and other forms of labour market inequalities between men and women, across countries including Sri Lanka, indicates that the prosperity of recent decades has not been shared equally. He observed that finding solutions in this area, is critical to achieve gender equality and decent work and economic growth.
In her keynote address Ms Sukti Dasgupta, Director - WORKQUALITY, ILO Geneva highlighted that gender equality is rooted in the fundamental principles and rights at work, and is at the heart of ILO’s mandate. In the context of Sri Lanka, she said that crisis recovery action should give adequate focus to both equity and stability and must improve the labour market prospects of women. She also advocated for social dialogue and meaningful discussion on the draft employment bill for articulating a gender responsive and sustainable economic recovery.
Articulating the way forward Mr RPA Wimalaweera, Secretary, Ministry of Labour and Foreign Employment, stated that the consultation witnessed rich discussion and suggested several policy interventions, some of which, such as enhancing the level of minimum wages has already seen cabinet approval. He added, that going forward, government will consider all the policy areas highlighted in today’s consultation for promoting gender equality in the world of work.
Highlighting the importance of the event, in her closing remarks, Ms Joni Simpson, Director, ILO Country Office for Sri Lanka and the Maldives, reaffirmed that there are opportunity costs for not addressing these key areas. At this critical time, it is important to work together to close gender gaps so that Sri Lanka can make an inclusive and sustainable economic recovery. ILO is committed to working with all stakeholders to make the world of work more equitable for women to access and thrive in Sri Lanka.
The two reports can be accessed on the ILO Sri Lanka website The care economy and decent work in Sri Lanka: Opportunities, challenges and future trends The gender pay gap in Sri Lanka: A statistical review with policy implications
The ILO is the United Nations specialized agency for the world of work. It sets international labour standards, provides technical assistance, and engages in policy dialogue to address pressing issues related to employment, labour rights, and social protection. The ILO works closely with governments, employers' and workers' organizations, and other stakeholders to achieve its mission of advancing social justice and promoting decent work worldwide.