Equal Remuneration Act: Fighting Gender Pay Gap at Workplace

Updated: July 15, 2026Published: July 15, 2026

Quick Answer

Employers are legally mandated to pay equal wages to men and women for the same or similar work under the Equal Remuneration Act, 1976 (now subsumed under the Code on Wages, 2019), which also explicitly prohibits gender discrimination in hiring and promotions.

Table of Contents

Key Takeaways

  • The Code on Wages, 2019 prohibits discrimination on the ground of gender in matters of wages for the same work or work of a similar nature.
  • Aggrieved women can file complaints before the Labour Inspector or the appointed Authority under the Code on Wages.
  • Employers are forbidden from reducing the wages of male employees to achieve wage parity.
  • Compensation for unequal pay can be claimed retrospectively, covering the period of discrimination.

Introduction

Despite progressive strides in corporate India, the gender pay gap remains a harsh reality, with women frequently earning significantly less than their male counterparts for executing the exact same responsibilities. Paying a woman less simply because of her gender is not just an unfair HR practice—it is a direct violation of Indian labour laws. The legal framework provides robust mechanisms for female employees to demand wage parity, ensuring that compensation is determined by skill, effort, and responsibility rather than gender.

Applicable Laws & Sections

The right to equal pay is primarily enforced through specific labour statutes:

  • The Equal Remuneration Act, 1976 & Code on Wages, 2019: The Equal Remuneration Act has now been subsumed into the broader Code on Wages, 2019. Under the Code, no employer shall pay to any employee wages less than what is paid to employees of the opposite gender for "same work or work of a similar nature."
  • Discrimination in Hiring: The law extends beyond just salary. It strictly prohibits employers from discriminating against women during the recruitment process, promotions, or training transfers for similar work.
  • No Downward Adjustment: A critical legal safeguard is that an employer cannot legally reduce the wages of a higher-paid male employee to match the female employee's salary and achieve "equality." They must raise the female employee's salary to bridge the gap.

Step-by-Step Procedure

  1. Internal Escalation: Before initiating litigation, formally raise a written grievance with your HR department citing the disparity and referencing the Code on Wages, 2019.
  2. File a Complaint: If the employer refuses to rectify the gap, file a formal complaint before the local Labour Inspector or the designated Authority under the Code on Wages.
  3. Labour Department Inquiry: The Authority will summon the employer, inspect the company's payroll registers, and evaluate if the work performed by both genders involves similar skill, effort, and responsibility.
  4. Order of Recovery: If discrimination is proven, the Authority will order the employer to pay the wage difference retrospectively. If the employer disobeys, the amount is recovered as arrears of land revenue.

Practical Tips

Proving a gender pay gap requires an airtight documentary trail. You must preserve:

  • Financial & Employment Records: Secure your salary slips, bank statements, signed offer letters, and the employer's asset/financial records (like publicly posted job descriptions showing higher pay bands for men).
  • Corporate Communications: Preserve timestamped WhatsApp chats, abusive or discriminatory emails, and call recordings demonstrating discriminatory intent by management.
  • Forward Emails Before Exit: If you are resigning due to discrimination, forward crucial HR emails (performance reviews, pay scale policies) to your personal email ID before your corporate access is revoked.
  • Labour Authority Claim: The fastest route to recover the wage difference is through the statutory Labour Authority.
  • Civil Suit: Female executives or managers who may not fall under the strict definition of a "Workman" can also file a civil suit for breach of statutory duty and claim damages for the financial loss suffered over their tenure.
  • Trade Union Intervention: Recognized trade unions hold the legal locus standi to file equal pay complaints on behalf of a group of female employees.

When Should You Consult a Lawyer?

You should consult an employment lawyer when:

  • Retaliatory Termination: If your employer fires you immediately after you raise an equal pay grievance, an advocate must file an urgent suit for wrongful termination and victimization.
  • Class Action Claims: If systemic gender pay discrimination affects dozens of women in your organization, a lawyer can help file a collective claim for massive retrospective wage recovery.

Conclusion

Equal pay for equal work is a statutory right, not a corporate privilege. By leveraging the protective framework of the Code on Wages, 2019, maintaining immaculate financial records, and refusing to accept discriminatory compensation, female professionals can hold employers legally accountable and secure the remuneration they rightfully deserve.

Frequently Asked Questions

Q: Does the equal pay law apply to private companies?

A: Yes. The Code on Wages, 2019 and the Equal Remuneration Act apply universally to all establishments in India, whether public, private, or unorganized sectors.

Q: How does the court define 'same work or work of a similar nature'?

A: The law defines it as work which requires identical or similar skill, effort, and responsibility, performed under similar working conditions. Minor differences in job titles do not legally justify a pay gap if the core duties are identical.

Q: Can I be paid less because I took maternity leave?

A: No. Taking statutory maternity leave cannot be used as a legal justification to deny increments or pay you less than male colleagues performing the same work upon your return.

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