Indian employees report lowest level of pay unfairness worldwide

New Delhi, Nov 04: The employee perceptions of fair compensation are improving worldwide, as the percentage of workers who feel they are unfairly paid has decreased from 31 per cent to 27 per cent year over year, a report said on Tuesday.

India leads in pay fairness sentiment among the 34 markets surveyed, with only 11 per cent of workers reporting dissatisfaction with their pay, the report from human capital management company ADP said.

The report said there are significant disparities among markets, with South Korea and Sweden reporting the highest levels of pay unfairness sentiment at 45 per cent and 39 per cent, respectively.

It also noted significant gender pay gaps in numerous countries, with over 30 per cent of women in 15 out of 34 markets indicating unfair pay, compared to only five markets for men.

However, India was reported among the few markets where a larger proportion of men (12 per cent) than women (9 per cent) perceive their pay as unfair.

Pay fairness dissatisfaction in India also decreases with age -- from 13 per cent among workers aged 18-26 to just 5 per cent among those aged 55 and above, contrary to the global trend.

“Fair pay is more than a compensation conversation; it is a trust conversation. When employees believe they are paid fairly, they are more engaged, motivated, and loyal,” said Rahul Goyal, Managing Director, ADP India and Southeast Asia.

India's leading position in pay fairness sentiment indicates progress in equitable pay practices, but employers need to ensure fairness extends beyond salary to include opportunities, growth, and recognition to foster long-term employee engagement, the report said.

Earlier in October, global payroll and compliance platform Deel said that the median salaries for men and women in India are nearly equal, ranging from $13,000 to $23,000, reflecting "growing pay equity and the adoption of data-driven compensation models.”