WAO advocacy officer Dhanya Shekhar said several factors contribute to this phenomenon, including cultural expectations that designate women as primary caregivers and assumptions that they are less assertive than men in negotiating salaries.
“Unconscious biases against women, reflected in implicit biases, further hinder the pursuit of equitable pay.
“Examples of these biases include confirmation bias, where decision-makers may subconsciously rely on stereotypes, assuming that women are less assertive in negotiating their salaries compared to men, even when individual negotiation styles vary widely,” she told FMT.
Dhanya added that addressing these challenges requires a comprehensive approach, encompassing legal reforms, changing cultural expectations, and promoting fair negotiation practices within the workforce.
According to the recently released Malaysian Gender Gap Index for 2022, the gender pay gap has widened significantly from 2020, where women receive just RM66.67 in wages and salaries for every RM100 men receive.
In 2022, the estimated annual salary for women stood at RM42,080 compared with RM63,117 for men.
Bait Al Amanah social policy and human rights head Simraatraj Kaur said the Covid-19 pandemic had widened the pay gap between 2021 and 2022, primarily due to increased care responsibilities, remote work challenges and disrupted career progression.
“With the shutdown of schools and daycare centres due to the Covid-19 outbreak, many women took on increasing caregiving obligations at home, affecting their ability to work normal hours or remain in the labour force completely.
“This led to a reduction in work hours, limiting their earning potential,” she told FMT.
To address women’s salary inequalities, she said, the government should implement pay equity legislation to enforce equal pay for equal work.
Simraatraj said companies should also support flexible work arrangements and promote women’s leadership.
“This allows women to balance work and personal responsibilities effectively,” she said.
On the other hand, the All Women’s Action Society (Awam) said industries these days demand specific skills that require a specific gender, affecting the pay gap.
The group said that women need to relearn and update their soft skills for compatibility, especially those from white-collar backgrounds.
Awam also said that companies should implement flexible working hours, offering employees work-from-home arrangements and promoting inclusiveness and a supportive work culture.
Potential downfall of gender pay gap
Dhanya said the underutilisation of women in the workforce, coupled with unequal pay for comparable work, presents a critical challenge with profound consequences for the overall economy.
“This phenomenon signifies a missed opportunity to unlock the full potential of our workforce.
“The sluggish growth of Malaysia’s GDP in the second quarter of 2023 (Q2 2023) likely played a role in exacerbating income inequality,” she said.
The GDP expanded by 3.3% in Q3 2023 compared to 2.9% in Q2 2023.
On the other hand, Simraatraj said the drop in women’s pay could lead to economic inequality, reduced household income, and a cycle of inequality in future generations.
“It restricts women’s financial independence, leading to unequal access to resources, opportunities, and wealth accumulation,” she said.
Awam added that unequal pay devalues women’s contributions to the workforce, reducing their incentives to participate in the labour force.
“It will also potentially result in lower income and purchasing power, and slower economic growth,” it said.
Awam said women may encounter difficulty accessing affordable healthcare upon retirement and lacking sufficient funds to cover essential daily needs.