India is poised to become one of the world’s largest economies, driven by a GDP growth of 7.7% in FY 26 from a 7.1% in FY 25. This robust expansion makes India one of the fastest-growing major economies globally. It is home to a young workforce, rapid digitalisation and sustained economic growth. But even as more women are entering the workforce than ever before, millions of them remain concentrated in jobs that are poorly paid, insecure and undervalued.
If women constitute nearly half of India’s population and their labour force participation has steadily increased, why are women employed in low paid work? Why do so many women continue to earn less despite working as hard, and often longer, than their male counterparts? More importantly, what does this mean for India’s aspirations of becoming a developed economy?
The answer lies in decades of unequal access to education, entrenched gender norms, unpaid caregiving responsibilities, occupational segregation and limited access to productive assets and formal employment. Although India has made encouraging progress in increasing women’s participation in the labour market, the next challenge is ensuring that women have access not just to work, but to decent, dignified and fairly paid work.
A Changing Workforce but Not an Equal One Yet
India has witnessed encouraging progress in women’s labour force participation over the past decade. According to the Periodic Labour Force Survey (PLFS) 2023–24, the Female Labour Force Participation Rate (FLFPR) for women aged 15 years and above has risen to over 41%, compared to 24.5% in 2017-18. This represents a significant increase, reflecting greater participation across rural and urban India.
However, participation alone does not guarantee economic empowerment.
The International Labour Organization (ILO) estimates that nearly nine out of every ten employed women in India work in the informal economy. Informal work often means irregular wages, limited legal protection, poor working conditions and little access to social security benefits such as paid leave, maternity protection, gratuity or retirement benefits.
Equally important is the work that remains invisible.
According to India’s Time Use Survey (2019) , women spend almost five hours every day on unpaid domestic and caregiving responsibilities, while men spend approximately one and a half hours. This unequal distribution of unpaid work directly influences the types of jobs women can pursue and the time they can dedicate to skill development or career advancement.
As the World Bank has repeatedly highlighted, improving women’s access to productive employment is essential for India’s long-term economic growth. Likewise, McKinsey Global Institute claims that advancing women’s equality could add nearly US$700 billion to India’s GDP.
These figures reveal an important truth: increasing the number of women in the workforce is only one part of the solution; the greater challenge is ensuring that women have access to sustainable, secure and fairly paid employment.
Why Are Women Employed in Low Paid Work?
Unpaid care work limits economic opportunities
If women are participating more in the workforce, why do they remain concentrated in lower-paying jobs?
One of the biggest reasons is the disproportionate burden of unpaid care work.
Across India, women continue to shoulder the majority of household responsibilities – from preparing meals and cleaning homes to caring for children and elderly family members. These responsibilities often leave women with limited time and flexibility to pursue full-time employment, higher education or professional development.
Consequently, many women choose occupations that accommodate these responsibilities rather than maximise their earnings. Home-based work, seasonal employment and part-time jobs may provide flexibility, but they often come with lower wages and limited career progression.
This is a structural constraint shaped by social expectations around gender roles.
Occupational segregation continues to shape women’s careers
Another answer to why are women employed in low paid work lies in occupational segregation.
Women remain overrepresented in sectors such as caregiving, tailoring, domestic work, food processing, handicrafts and primary education. While these professions are indispensable to society, they have historically been undervalued and underpaid.
Conversely, higher-paying sectors such as manufacturing, engineering, finance, technology and infrastructure continue to have comparatively lower female representation.
Why does this happen?
Gender stereotypes begin influencing aspirations at an early age. Girls are often encouraged towards careers perceived as “safe” or “appropriate,” while boys are more likely to be encouraged to pursue technical or leadership roles. These expectations shape educational pathways, skill acquisition and eventually labour market outcomes.
Education opens doors, but skills create opportunities
India has made remarkable progress in improving girls’ access to education. However, education alone does not guarantee economic mobility.
Many women, particularly those from underserved communities, continue to face barriers in accessing technical education, digital literacy and market-oriented vocational training. As industries become increasingly driven by automation and digital technologies, workers without relevant skills are more likely to remain confined to low-paying occupations.
Bridging this gap requires more than classroom education.
Smile Foundation’s women empowerment initiative Swabhiman reflect this understanding by combining education with vocational training, entrepreneurship development and financial literacy. Rather than focusing solely on employability, these programmes equip women with practical skills that enable them to participate confidently in local economies, access sustainable livelihoods and make informed financial decisions. Such integrated interventions demonstrate that skilling becomes truly transformative when accompanied by mentorship and community support.
Gender bias and unequal pay
Can women truly compete on equal terms when workplaces continue to be shaped by gender bias?
Although India has legal provisions promoting equal pay, women frequently experience wage disparities, slower promotions and limited representation in leadership positions. Only about 8% to 9% of CEOs in Indian organizations are women.
Employers may assume that women are less committed to long-term careers because of caregiving responsibilities, influencing recruitment and promotion decisions. Women are also less likely to negotiate salaries aggressively due to social conditioning and workplace cultures that reward different behaviours in men and women.
These factors collectively contribute to persistent income inequality.
Informal employment and economic vulnerability
Women working as agricultural labourers, domestic workers, street vendors and home-based producers contribute significantly to India’s economy, yet they often lack written contracts, fixed salaries or retirement benefits.
Without health insurance, maternity protection or retirement savings, even temporary disruptions, such as illness, pregnancy or childcare responsibilities, can have long-lasting financial consequences. This is why awareness around reproductive health and childcare becomes so important. Smile Foundation’s initiatives in reproductive and childcare education help women better understand maternal health, infant care and family well-being, enabling them to make informed decisions that support both their livelihoods and their families.
Moreover, limited access to institutional credit often prevents women from investing in productive assets or expanding income-generating activities.
The result is a cycle in which women remain economically active but financially vulnerable.
The Ripple Effect of Low Paid Work
Low-paid employment affects much more than individual incomes.
Research consistently shows that women invest a larger proportion of their earnings in children’s education and nutrition. When women earn less, families have fewer resources to improve their quality of life, increasing vulnerability to poverty and economic shocks.
The effects extend to the broader economy as well.
The World Bank, ILO and EY have all emphasised that economies with higher female labour force participation and smaller gender gaps experience stronger productivity, greater household prosperity and more inclusive economic growth.
Addressing why are women employed in low paid work is therefore not simply about gender equality, it is central to India’s economic future.
Signs of Positive Change: Moving Away from Low Paid Work
Despite these challenges, there is reason for optimism.
More girls are completing school than ever before. Women’s participation in self-help groups has expanded significantly, creating opportunities for savings, entrepreneurship and financial inclusion. Digital banking and mobile technology have improved women’s access to financial services, while government and private-sector initiatives are creating new opportunities for skill development.
Across India, organisations working at the grassroots level are helping ensure that these opportunities reach women who have historically remained excluded from formal economic systems.
Smile Foundation, for instance, adopts a lifecycle approach to women’s empowerment by integrating education, health, livelihood generation and community participation. Rather than focusing solely on employment, its programmes work with women to build financial literacy, entrepreneurial capabilities and vocational skills while also engaging communities to challenge gender stereotypes that limit women’s participation in the workforce. This integrated model recognises that sustainable economic empowerment depends on both individual capability and supportive social ecosystems.
These interventions demonstrate that when women receive the right opportunities and community support, they are far more likely to secure sustainable livelihoods and improve their families’ quality of life.
Building a More Inclusive Labour Market
Understanding why are women employed in low paid work is only the beginning. Creating meaningful change requires coordinated action across governments, employers, educational institutions and civil society.
Invest in education and future-ready skills
Girls and women need greater access to STEM education, vocational training, digital literacy and financial education that prepares them for emerging industries rather than reinforcing traditional occupational roles.
Recognise unpaid care work
Affordable childcare, flexible workplaces and community care services can significantly reduce the disproportionate burden of unpaid care work borne by women. Encouraging shared household responsibilities is equally important.
Strengthen the informal workforce
Extending social security, maternity benefits, health insurance and legal protections to informal workers would improve both job quality and long-term financial security.
Promote equal pay and inclusive workplaces
Transparent recruitment, equitable promotion policies and regular pay audits can help reduce gender disparities while encouraging more women to move into leadership positions.
Support women entrepreneurs
Entrepreneurship offers women an opportunity to move beyond low-paid employment and become job creators. However, access to credit alone is insufficient. Women also require mentorship, business development support, market linkages and financial literacy.
Recognising this, Smile Foundation’s initiative Swabiman supports women through entrepreneurship development, livelihood promotion, financial literacy and self-help group participation. Such interventions help in strengthening household resilience and create local employment opportunities.
The Role of Community Organisations
Policy reforms and economic growth alone cannot eliminate the barriers that keep women in low paid work. Lasting change must also emerge from within communities.
Community organisations play a critical role in addressing the interconnected challenges of education, financial inclusion, livelihood generation and gender norms. By working directly with families and communities, Smile Foundation demonstrates that uplifting women’s lives through is not a standalone intervention but a continuous process through skill training, financial literacy and health education. This holistic approach ensures that women are not only able to earn an income but also exercise greater agency over their lives and futures.
A battle bigger than just wages, low paid work
The question why are women employed in low paid work cannot be answered by wages alone. It reflects generations of unequal access to education, occupational segregation, unpaid caregiving responsibilities, informal employment and persistent gender bias.
However, the trajectory is changing.
More women are joining the workforce, acquiring new skills, leading enterprises and participating in local economies than ever before. The challenge now is to ensure that these gains translate into dignified employment, fair wages and equal opportunities for advancement.
Achieving this transformation requires collective action. Governments must strengthen social protection and invest in gender-responsive policies. Employers must build inclusive workplaces. Communities must challenge stereotypes that restrict women’s aspirations. Educational institutions must prepare women for the jobs of the future. And development organisations must continue creating pathways that connect education, skilling, entrepreneurship and livelihoods.
When women have access to decent work, they do far more than earn an income — they strengthen families, improve children’s futures, stimulate local economies and contribute to a more equitable society. Investing in women’s economic empowerment is therefore not only an investment in gender equality; it is an investment in India’s sustainable development.
