Women Outpace Men in 2025

This week, the Indian government’s Periodic Labour Force Survey (PLFS) revealed a historic shift in wage growth dynamics: women in India experienced higher wage growth than men across all job types in 2025.
The data shows that women’s earnings in salaried jobs rose by 7.2%, while men saw a more modest increase of 5.8%.
In self-employment, women’s earnings surged by 8.8%, compared to an 8% rise for men.
Even in casual labor, where men’s earnings fell by 0.2%, women managed a growth of 5.4%.
This trend marks a significant change in the labor market, highlighting a potential turning point in gender wage disparities.

A Deeper Dive into the Numbers: Salaried Jobs, Self-Employment, and Casual Labour

Despite the encouraging wage growth for women, the PLFS data underscores a persistent pay gap.
In salaried positions, women earned only 76% of what their male counterparts made, a figure that has seen little change since 2022.
However, the proportion of women in salaried jobs increased to 18.2% in 2025 from 16.6% in 2024, indicating a slow but steady shift towards greater female representation in higher-quality employment.

In the realm of self-employment, the situation is less favorable.
Women earned just 36% of what men earned, and the percentage of women participating in self-employment decreased to 64.2% from 66.5%.
This decline suggests that while women are gaining ground in salaried roles, they are losing traction in self-employment opportunities.
Conversely, casual labor saw a slight improvement, with women earning 69% of what men earned, up from 66% in 2024.
The proportion of women in casual labor also rose to 17.6% from 16.9%, reflecting a broader trend of increased female participation in various job sectors.

Women Still Trailing Men

While the wage growth figures are promising, they also reveal the stark reality of income inequality.
Women continue to earn significantly less than men across all job types.
In salaried jobs, the 76% wage figure starkly illustrates the gap, while the 69% in casual labor and the alarming 36% in self-employment highlight the challenges women face in achieving equitable pay.
This disparity persists despite the overall wage growth for women, indicating that systemic barriers remain entrenched in the labor market.

Women Still Trailing Men While the wage growth figures are promising, they also reveal the stark reality of income inequality.

Moreover, the data suggests that the wage growth experienced by women, while notable, is not enough to close the gap.
The PLFS findings emphasize that without targeted interventions to address these disparities, women may continue to lag behind their male counterparts, even as their earnings grow at a faster rate.

More Women in Salaried Jobs

The increase in women’s representation in salaried jobs is a crucial development in the Indian labor market.
The overall proportion of employed individuals in salaried positions rose to 23.6% from 22.4% in 2024, signaling a shift towards more stable and secure employment.
Additionally, the rural unemployment rate decreased to 2.4% in 2025 from 2.5% in 2024, while urban joblessness fell to 4.8% from 5%.
These trends suggest a gradual improvement in job availability and quality across the board.

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However, the decline in the rural Labor Force Participation Rate (LFPR) to 62.8% indicates that fewer rural Indians are actively seeking work.
This could reflect a combination of factors, including economic conditions and social dynamics that influence employment decisions.
The steady urban LFPR at 52.2% suggests a more stable labor market in cities, but it also raises questions about the inclusivity of job growth in rural areas.

Implications for India’s Labour Market

The implications of these trends are profound for India’s labor market.
The shift towards higher wage growth for women and increased participation in salaried jobs could lead to a more equitable distribution of income.
As women gain access to better-paying positions, the potential for enhanced economic stability and growth becomes more tangible.
This could foster a more inclusive economy, benefiting not only women but society as a whole.

More Women in Salaried Jobs The increase in women’s representation in salaried jobs is a crucial development in the Indian labor market.

Looking ahead, the critical question remains: will this trend of higher wage growth for women continue?
If it does, the labor market may see a significant transformation, with women playing a more prominent role in driving economic growth.
However, the persistence of the pay gap and the challenges in self-employment must be addressed to ensure that this progress is sustainable.
If policymakers implement effective strategies to support women in the workforce, then the future could hold promising advancements in gender equality and economic development.

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