This paper provides an analysis of gender wage differential in the overall labour market, public–private sectors in India by applying different decomposition techniques, using the National Sample Survey, 50th, 68th rounds of Employment and Unemployment surveys along with the recently released Periodic Labour Force Survey (2018–2019). The results show that the unexplained component explained the major part of the gap and occupational discrimination was considerably more important than wage discrimination. The increase in gender wage gap in the public sector is because of the implementation of various public employment schemes for nutrition, health and education and the increasing reliance on underpaid women workers in implementing the same. It had the perverse effect of intensifying gender discrimination in terms of occupational segmentation and gender wage gaps. Finally, the study recommends that public policy can play a major positive role in rectifying this distressing situation and a strong political will is required to do so.