The gender discrimination is a significant issue in the labor market. “Motherhood Penalty” is one of the important contributors to this issue. This study aims to find the evidence of impact of parenthood on employment to population ratio and mean nominal monthly earnings concerning factors – household structure and number of children under age six. Using interactive multiple linear regression models, we have derived meaningful conclusions from data collected from the International Labor Organization (ILO). Our findings reveal that there is a significant motherhood penalty in India. Women’s employment probability decreases by 12.4% with one child and up to 19.09% with three or more children. Meanwhile, men experience a fatherhood bonus, with employment rates rising by up to 24.79% as they have more children. Wage disparities are also evident—mothers with two or more children earn substantially less than childless women, whereas the fatherhood wage premium is weaker than in developed economies. Mothers with two or more children earn substantially less than childless women, whereas the fatherhood wage premium is weaker than in developed economies. Through this study, we also see the probable reasons behind the results observed from the models. Lack of institutional support for working moms, workplace prejudice, and deeply rooted gender stereotypes are some of the main reasons attributing to the “Motherhood Penalty”. This disparity is further exacerbated by strict work rules, poor childcare facilities, and lax paternity leave regulations. Overall, the motherhood penalty is a serious phenomenon affecting the lives of many mothers and degrading their standards of living.