India records lowest sense of pay unfairness globally: ADP Report

Indian employees have reported the lowest sense of pay unfairness globally, according to a new report by human capital management company ADP. Only 11 per cent of Indian workers said they felt underpaid, the lowest number among the 34 countries surveyed.

The global report showed that perceptions of fair pay are improving overall, with the share of employees who believe they are underpaid falling from 31 per cent to 27 per cent compared to last year. However, the study also found wide differences across countries. South Korea had the highest level of dissatisfaction at 45 per cent, followed by Sweden at 39 per cent.

The study also highlighted that the gender pay gap continues to exist across most regions. In 15 of the 34 countries, more than 30 per cent of women said they were unfairly paid, while only in five countries did men report similar dissatisfaction.

India stood out as one of the few countries where more men, at 12 per cent, than women, at 9 per cent, said they felt underpaid. The study further found that perceptions of unfair pay in India drop with age, from 13 per cent among workers aged 18 to 26 to just 5 per cent among those aged 55 and above, which goes against the global pattern.

“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.

The report said India’s leading position shows clear progress towards fair and equitable pay. It also noted that fairness should not be limited to salary but should extend to opportunities, career growth and recognition.

In a related report, global payroll and compliance platform Deel said in October that median salaries for men and women in India are now almost equal, ranging between $13,000 and $ 23,000 a year. The findings suggest that India’s pay equity is improving with the help of data-driven compensation models.