The 'motherhood penalty' — wherein women earn less after having children— is a well-known global issue with serious implications for career growth, family finances, and gender equality. In India, this penalty is especially pronounced. Research on 'motherhood penalty' remains limited even though studies and personal experiences paint a grim reality. Many women exit the workforce after childbirth; those who return often encounter career stagnation, reduced wages, and restricted opportunities. An estimate by IWWAGE of Krea University showed a sharp decline in female labour force participation in salaried jobs for both rural and urban India in 2017-18 and in 2023-24. Childcare and household chores were cited as the main reasons for this trend.
Our research, along with Anirban Mukherjee from the University of Calcutta, draws on data from the India Human Development Survey (2004-05 and 2011-12) and confirms that the 'motherhood penalty' remains a persistent issue. Our findings reveal that working mothers continue to face challenges regardless of age, education, job type, family structure, or financial status. However, the severity of this penalty varies across professions and family dynamics.
One of the most eye-opening insights from our research concerns the economic toll of an unplanned pregnancy. If a woman has one more child than what she intended, her wages drop by 2.9% and the likelihood of employment falls by 8%. This effect is more pronounced outside the southern states where an unintended birth results in a 5% wage decline and a 1.2% lower chance of finding a job. These challenges affect both full-time and part-time workers, underscoring the deep-rooted barriers that mothers face in the workforce.
Compared to Western Europe and the United States of America, where the motherhood wage penalty ranges from 3% to 16%, India’s challenge is unique: many women permanently drop out of the workforce after becoming mothers.
Real-life experiences highlight how this penalty plays out. Zeba, a graphic designer based in Calcutta, saw her freelance work dry up when she started working from home to care for her child. While mothers face setbacks, fathers often experience the opposite — known as the 'fatherhood bonus'. Sourav, an IT professional in Calcutta, got a raise and more responsibilities after his son was born. Meanwhile, working women get passed over for promotions or nudged into less demanding roles after maternity leave. Research suggests a mix of gender norms and workplace biases drives these disparities. Employers often perceive mothers as less committed or productive, leading to discrimination. Career breaks also reduce wages by eroding skills and firm-specific advantages.
The impact differs based on skill level: low-skilled women workers face fewer opportunity costs since their wages are not tied to specialised skills. High-skilled women, however, experience major career setbacks as their earnings depend on expertise and long-term professional growth. Workplace expectations also play a role. In high-paying careers, long hours signal commitment. Women balancing work and family struggle to meet these demands, often opting for 'mommy track' jobs with flexible schedules but limited career growth.
Despite progressive laws like the Maternity Benefit (Amendment) Act, 2017, their implementation remains a major challenge in India. Very few companies comply with legal stipulations. Many women in the informal sector, which makes up a large portion of India's workforce, receive no maternity benefits at all. Childcare facilities at workplaces are also rarely available, forcing many women to either quit their jobs or rely on unregulated daycare centres. The lack of paternity leave places the entire childcare burden on mothers.
Without better enforcement and cultural shifts towards shared parenting, the motherhood penalty will continue to limit women's careers and economic participation in India.