29 percent gender pay gap in Indian IT Industry: Report

Wednesday, Jul 23, 2014,17:49 IST By metro vaartha A A A

Indian IT industry faces a gender pay  gap of 29 per cent as the sector employs only 30 per cent of  women out of its total workforce, says Monster India  (www.monsterindia.com), one of the leading online career and recruitment solutions providers in the country, in its study ‘Monster Salary Index India IT Sector Report 2014′.
One of the most astounding findings of the report is that  the gender pay gap in the IT industry is as high as 29 per cent.
As per the Monster Salary Index, the male IT worker receives gross salary of Rs 359.25 per hour while female receives Rs 254.04 per hour. This disparity possibly emerges from the fact that men get promoted to supervisory position more often than women, the report stated.    Male IT worker receives gross salary of Rs 359.25 per hour against Rs 254.04 per hour by the female and this inequality reflection of men being in more supervisory positions than women in the IT sector, the study said.    Monster Salary Index (MSI) is an initiative by Monster India in collaboration with Paycheck.in (managed by WageIndicator Foundation) and IIM-Ahmedabad as a research partner.
MSI has successfully empowered jobseekers with a benchmarking to compare their salaries with other anonymous profiles across a broad spectrum of industry domains, experience, functional groups both in India and other global markets. For employers, MSI is an online salary survey that aims to provide employers with practical information and helps them make informed decisions by analyzing the salary market and optimizing employee remuneration.

The report also states that the tenure of an employee with  an organisation is a compelling factor that sways the salary of  an employee. More experienced workers are paid better than less experienced ones. While on an average an employee with less than three years of experience gets Rs 142.97 per hour and an employee with more than 10 years of experience gets Rs 625.55 per hour.
Women have started being active in the IT sector only recently and are also likely to find it harder to accumulate tenure due to family obligations. Re-entry to the job market is difficult for women and they are often paid less when they decide to enter the labour market again. With more number of career breaks in their job history, the negotiating capacity of women in the labour market declines. Hence, men with similar experience earn higher salary as compared to women.    Commenting on the salary trends, Pauline Osse, Director WageIndicator Foundation said, ‘The MSI-IT report is a perfect illustration of how a methodical research and distribution approach on salaries is aiding many people who seek a good benchmark to take a sagacious decision.
The collaboration with Monster has improved our data intake and enabled robust output, in terms of salary related information and profound insights in the employment market trends.
He expressed hope it will encourage women employees and their employers to improve employment scenario for women in IT sector.’   Sharing his views, Mr. R. Chandrasekhar, President, NASSCOM said, ‘The growth of the IT sector has tremendously contributed to the growth of the Indian economy, enabling GDP growth, exports and employment.’
‘The report highlighted the strong need to create equal opportunities for all employees and specially women who are a key contributor to the industry, as it would pave the path for new avenues in developing the economic scenario,’ he added.    Another interesting insight of the report was that male workers with permanent contracts get paid better than those employed for a limited time. Women employed for a limited time get paid better than those with permanent contracts as a measure taken by corporates to sustain talent.
In India about 65 per cent of workforce in IT sector works in large to mid-sized companies with more than 5,000 employees.

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