By all appearances, 2025 should feel like a turning point for working women in India. The latest findings from the Periodic Labour Force Survey (PLFS) by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation suggest that women’s earnings are rising faster than men’s across nearly every category of work.
As per the survey, women’s incomes through salaried jobs grew by 7.2 per cent each year, compared to 5.8 per cent for men. Among the self-employed, women saw an 8.8 per cent increase, slightly ahead of men’s 8 per cent. Even in casual labour, women’s wages rose by 5.4 per cent while men’s earnings dipped slightly.
To understand why faster growth doesn’t automatically mean equality, let’s look at the starting line. Even today, Indian women earn significantly less than men across sectors. Estimates suggest women earn 19–24 per cent less than men on average, reflecting a deep and persistent gender wage gap. PLFS data from recent years reinforces this gap. In urban India, men earned roughly ₹26,000 per month compared to about ₹19,800 for women. When women’s wages grow faster, they are often catching up slowly to a much lower baseline.
Behind The Numbers
The PLFS is India’s most important employment dataset, tracking jobs, wages, and labour force trends since 2017. Its latest findings expose structural inequalities. For many women, work is still concentrated in informal sectors, self-employment and low-paying or unstable jobs. In fact, a significant proportion of working women are self-employed not always by choice, but often due to lack of formal opportunities.
Participation Is Rising
The good news is that more women are entering the workforce. As per the survey, female labour force participation has risen significantly in recent years, touching over 35 per cent in late 2025, up from 33.7 per cent in the previous quarter, and continuing an upward trend. Even rural women participation increased from 37.5 per cent to 39.4 per cent in late 2025.
However, many women are entering jobs that are low-paid, unprotected and lacking benefits or security. Increase in participation is largely driven by self-employment, agriculture and family-based work, and is heavily concentrated in low-productivity sectors. As one analysis puts it, India often offers women ‘employment without earnings’ or work that doesn’t translate into meaningful financial independence.
What Faster Wage Growth Means
So, what should we make of the PLFS finding that women’s earnings are growing faster? It signals three important shifts:
1. Women Are Becoming Economically Visible
More women are entering paid work and their contributions are increasingly being counted. This matters in a country where millions of women’s labour has historically been invisible.
2. Incremental Gains Are Happening
Higher growth rates suggest that, in some sectors, women are beginning to close the gap, even if slowly.
3. Policy And Awareness May Be Working
Government schemes, corporate diversity initiatives, and conversations around gender equality are beginning to have measurable effects. But growth is not the same as equality.
The Emotional Side Of The Pay Gap
For many women, the gender pay gap shows up as being offered a lower salary than a male colleague, or being passed over for promotions. It also means having to choose flexibility over financial growth or carrying a second shift of unpaid work at home. This then translates into financial dependence, reduced savings, and fewer long-term opportunities.
What Needs To Change
As per the survey, the male Labour Force Participation Rate (LFPR) still remains higher, ranging between 75 per cent to 78 per cent. If India is serious about closing the gender pay gap, faster wage growth is only the beginning. Secure, salaried employment with contracts, benefits, and fair wages must expand. Affordable childcare, safe transport, and flexible work policies can dramatically increase women’s ability to work. Companies need to openly address wage disparities and ensure equal pay for equal work. Women must have access to training in high-growth, high-paying sectors like technology, finance, and manufacturing. And the hardest shift of all, is redefining gender roles at home and in society.
India’s economic future is deeply tied to women’s economic participation. Despite recent gains, nearly two-thirds of women are still outside the labour force. Studies consistently show that increasing women’s participation and earnings can boost GDP, reduce poverty, and improve family well-being.
The PLFS data tells a story of momentum with women earning more and working more, becoming more visible in India’s economic landscape. We are in the middle of a quiet economic revolution led by women, but it hasn’t reached its full potential yet.