Low Wages and Women’s Workforce Participation Challenges
The issue of low wages is increasingly recognised as a major barrier for women entering and staying in formal employment in India. A 2025 report by Quess Corp and the Udaiti Foundation marks that over half of women in blue- and grey-collar jobs are dissatisfied with their pay. Most women save very little or nothing monthly, making financial independence difficult. This situation puts stress on the urgent need to re-examine wage structures and labour policies to support women workers better.
Wage Disparity and Savings Constraints
The report reveals that women in blue- and grey-collar roles earn only about 70 per cent of men’s wages. Nearly 54 per cent of these women are unhappy with their pay. Around 80 per cent save less than Rs 2,000 monthly or nothing at all. Low wages combined with high living costs and unpaid caregiving duties make it hard for women to sustain employment. This financial strain often forces women to leave the workforce.
Gap Between Minimum Wage and Living Wage
A gap exists between the statutory minimum wage and the actual living wage needed to cover essentials. The Ministry of Labour and Employment is exploring a more comprehensive definition of minimum wage. This new concept includes expenses on health and education, which were previously excluded. Such changes aim to reduce the opportunity costs women face when joining formal jobs.
Impact of Opportunity Costs on Women’s Employment
Women face unique opportunity costs such as unpaid caregiving, commuting time, and migration expenses. These factors increase the real cost of employment for women beyond wages alone. The report found that women earning above Rs 20,000 monthly are 21 per cent less likely to quit jobs, indicating the positive role of better pay in retention.
Regulatory and Social Barriers
Beyond wages, women confront workplace culture challenges, limited safe housing, and mobility issues. About 54 laws restrict women’s workforce participation, including night shift bans that many states are now removing. Removing these laws shifts responsibility to employers to ensure safety, for example by providing transport. Large companies can manage this better than smaller firms, creating uneven opportunities.
Industrial Growth and Female Labour Participation
States with strong manufacturing bases like Tamil Nadu, Karnataka, and Maharashtra show higher female workforce participation. Women’s skills in finger dexterity and hand-eye coordination make them well-suited for electronics, auto manufacturing, and emerging sectors such as semiconductors. Industrial hubs thus play a key role in absorbing more women into formal employment.
Female Labour Force Participation Trends
India’s female labour force participation rate remains low at 32 per cent compared to 77.1 per cent for men. Economists argue that raising women’s participation above 50 per cent is crucial for India’s economic development. Addressing wage inadequacies, social barriers, and safety concerns is central to achieving this goal.
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