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The study measures the impact of compassion on psychological well-being of employees in educational institute of the southern Punjab, Pakistan with mediating role of gender pay gap. The objective of this study is to find out the relationship of compassion, self-esteem, mindfulness, personal sense of uniqueness and racial socialization with psychological well-being of employee and to find indirect relationship using gender pay gap as mediator. A sample of 400 teachers was utilized to find out results of study through Likert scale. Structural Equation Modelling and Multiple Regression analysis have been applied using Smart PLS3. Results found that compassion, mindfulness and racial socialization have significant impact on psychological wellbeing of employee. Mediation effect of gender pay gap has been identified between compassion, self-esteem, personal sense of uniqueness and racial socialization with psychological well-being. This study contributes well to the existing literature by highlighting the influence of the relationship between gender pay gap and psychological wellbeing. According to the findings of this study, it is important to increase compassion, mindfulness, self-esteem, personal sense of uniqueness to improve the welfare of employees, enable them to better deal with gender pay gap and make them psychological well.

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Gender pay gap: A mediating agent of compassion, self-esteem, mindfulness, personal sense of uniqueness and racial socialization for psychological well being