The principle of "equal pay for equal work" has long been a cornerstone of workplace equality. However, this idea frequently stays more idealistic than practical in many nations, including India. Gender-based wage inequities persist in the Indian labor market despite legislative measures, international norms, and constitutional support.

 The Equal Remuneration Act of 1976 was passed in response to these persistent issues, outlawing gender-based discrimination in hiring and salary decisions. But as time went on, its execution stalled. India implemented a thorough labor reform in 2019 with the Code on Wages, 2019, which aims to tighten and simplify wage-related laws. The 1976 Act was repealed and incorporated into this Code, which promised a new framework more in line with contemporary employment realities.

The concept of equal remuneration, the history of laws in India that address it, a critical comparison of the old (ERA 1976) and new (Code on Wages, 2019) legal frameworks, and the progress—or lack thereof—that has been made in closing the gender pay gap are all covered in detail in this blog.

The Principle of Equal Remuneration: Definition and Importance

1. What is Equal Remuneration?
   The practice of paying people the same amount for doing the same or comparable work, irrespective of their gender, race, or other potentially discriminatory characteristics, is known as equal remuneration. It guarantees that pay is determined exclusively by the type and caliber of work completed, not by the individual traits of the employee.
   The fundamental premise behind equal remuneration is that those who accomplish comparable work ought to be paid equally. The underlying premise of this idea is that equal work should be paid equally, regardless of a worker's gender, color, or any other characteristics irrelevant to job performance.
    
2. Why Is It Important?
• Constitutional Mandate: The Indian Constitution's Article 39(d) expressly requires the State to focus its policies on ensuring that men and women receive equal compensation for equal labor. The significance of gender equality in employment practices is emphasized by this constitutional provision.
• Human Rights Issue: Discrimination in wages based on gender is a violation of human rights in addition to being an economic problem. Regardless of gender, ensuring equal pay respects people's individuality and dignity by enabling them to be fairly compensated for their labor. Denying someone equal compensation erodes their entitlement to fair treatment at work and supports discrimination.
• Economic Efficiency: Research has indicated that reducing the gender wage gap boosts output. Women are more motivated and participate in the workforce when they are paid equally for equal effort, which makes them more productive contributors to the national economy. Additionally, a gender-balanced workforce fosters greater creativity and decision-making.
• Social Equity: Fairness and inclusivity in the workplace are promoted by equal compensation. Society can move closer to eliminating damaging perceptions and traditional gender norms that frequently prevent women from obtaining high-paying or leadership positions by lowering gender-based wage discrepancies. This encourages social justice by valuing each employee's effort equally, regardless of gender.
• Poverty Reduction and Economic Independence: Wage disparities frequently disproportionately affect women, who make up a sizable share of the workforce. Poverty may be decreased by closing the gender pay gap, particularly for single mothers and households led by women. Women become more economically independent as a result, allowing them to make investments in their families' welfare, education, and health.
• Diversity and Inclusion in the Workplace: Efforts to promote diversity and inclusion in firms are intimately related to fair compensation. Ensuring equitable pay promotes a work culture that appreciates every employee equally and aids in luring and keeping varied talent. Increased creativity, improved organizational performance, and employee satisfaction are all linked to a diverse workplace.
• Encouragement of Women's Participation in High-Skilled Sectors: Women are more likely to engage and remain in high-skilled, historically male-dominated fields like technology, engineering, and leadership positions when they get equal compensation. By providing equal pay, businesses show that they are committed to selecting people based on merit rather than gender stereotypes, which opens up unrealized potential and breaks down barriers in a variety of industries.
• Global Competitiveness: Nations that ignore gender pay disparities run the risk of slipping behind in the world economy. Businesses in nations with sizable gender pay inequalities may find themselves at a competitive disadvantage as global markets and organizations place a greater emphasis on sustainable practices and corporate social responsibility. Reducing the pay gap improves a country's standing in the international market and increases the workforce's appeal to overseas investors.
   
3. The Equal Remuneration Act, 1976 – A Pioneering but Limited Law
   India's first gender pay law came in the form of the Equal Remuneration Act, 1976. Enacted after India ratified the ILO Convention No. 100 (Equal Remuneration Convention, 1951), the law represented a major leap forward.

Key Provisions of the Act:

• Section 4: Employers must pay equal remuneration to men and women for the same or similar work.
• Section 5: No gender discrimination in recruitment (unless prohibited by law).
• Section 6: Formation of advisory committees to increase women's employment.
• Section 7: Authority to hear and decide claims and complaints.

Penalties: Up to one month of imprisonment or a fine of ₹10,000, or both. Strengths:

• Established a legal benchmark for wage equality.
• Prohibited discriminatory hiring practices.
• Covered both public and private sectors.

Limitations:

• Ambiguity in "same or similar work": Caused disagreements over interpretation.
• Inadequate enforcement: Not many cases were filed or brought to justice.
• Limited coverage: Not all industries were covered equally.
• Gender-binary terminology did not take into consideration contemporary conceptions of gender variety.

Code on Wages, 2019 – A Modern Unified Legislation

• In 2019, India overhauled its labour laws through the introduction of four major codes. The Code on Wages, 2019 consolidates the following:
• The Minimum Wages Act, 1948
• The Payment of Wages Act, 1936
• The Payment of Bonus Act, 1965
• The Equal Remuneration Act, 1976
• Highlights Relevant to Equal Remuneration:
  • Section 3(1): Employers cannot discriminate based on gender in matters relating to wages for the same or similar work.
  • Section 3(2): No discrimination in recruitment, except where legal restrictions apply.
  • Section 2(y): Broader and unified definition of "wages."
  • Digital compliance: Online portals, digital records, and inspections.
  • Increased penalties: Up to ₹50,000 for first offences.
• Objectives Behind the Code:
  • Make complicated laws simpler and more logical.
  • Unite all industries, whether organized and unorganized.
  • Make sure wage practices are accountable and transparent.
  • Switch from an inspector-raided system to one that is compliance-based.
     

Old vs New: A Comparative Analysis

Feature	Equal Remuneration Act, 1976	Code on Wages, 2019
Nature of Law	Standalone Act on gender wage equality	Consolidated code covering all wage aspects
Coverage	Only notified sectors	All sectors—organized and unorganized
Definition of Wage	Limited and inconsistent	Uniform, inclusive definition
Language	Gender-binary	Gender-neutral ("employee")
Hiring Clause	Prohibited discriminatory hiring	Same clause retained
Enforcement	Labour officers, minimal digital tools	Inspector-cum-facilitator model with digital oversight
Penalties	₹10,000 or 1-month jail	Fines up to ₹50,000 or more
Scope of "Work"	"Same or similar work" (narrowly defined)	Broader interpretation possible
Data and Compliance	Paper-based records	Digital registers and e-filing

Role of Judiciary in Advancing Equal Pay

• Key Judgments:
  • Randhir Singh v. Union of India (1982): Established that "equal pay for equal work" is a constitutional right under Articles 14 and 16.
  • Mackinnon Mackenzie & Co. Ltd. v. Audrey D'Costa (1987): Held that gender alone cannot determine different pay for work of similar value.
  • State of Punjab v. Jagjit Singh (2016): Reinforced that temporary or contractual workers should not be paid less than regular employees for the same work.
• These judgments remain relevant even under the Code on Wages, reinforcing judicial support for wage equality.

Global Benchmarks and India's Position

• Major ILO treaties that India has accepted include:
  • Convention No. 100, Equal Remuneration (ratified in 1958)
  • Convention No. 111: Discrimination (Employment and Occupation)
• Countries like Iceland, Sweden, Canada, and Germany are among the nations that have implemented rules pertaining to gender pay transparency. Although it lacks required reporting or audit requirements, India's Code on Wages is a start in the right direction.

Barriers to Real Equality

• Implementation is hampered by institutional and cultural impediments even in the face of progressive laws:
  • Wage masking: Employers may give comparable roles distinct titles.
  • Lack of transparency: Pay scales are frequently concealed.
  • Segregation in the workplace: Women were disproportionately employed in low-wage positions.
  • Social attitudes: Career pathways are influenced by gender roles and family expectations.
     

Recommendations for Strengthening Equal Pay Framework

• Mandatory Pay Audits- Institutions above a threshold should conduct annual gender pay audits.
• Pay Transparency Laws- Require companies to publish anonymized salary data by gender and role.
• Strengthening Labour Inspections- Reinstate strong enforcement alongside compliance facilitation.
• Public Awareness Campaigns- Use media, workshops, and local outreach to inform workers of their rights.
• Gender-Neutral Job Evaluation- Promote the use of objective criteria to evaluate roles, irrespective of the individuals who carry them out.

Conclusion
India made its first official legal commitment to female pay equality in 1976 with the Equal Remuneration Act. Despite being advanced at the time, it had limited application and implementation flaws. Even though the 2019 Code on Wages is more thorough and up to date, it still requires strong enforcement and cultural changes to reach its full potential.

Real pay equality involves creating an environment of justice, openness, and respect rather than just following the law. Closing the gender wage gap will not only advance justice but also unleash the potential of millions of workers nationwide as India continues its path to becoming a global economic powerhouse.

References:

• The Constitution of India, Article 14, 15, and Article 39(d) – Directive Principles of State Policy.
• Equal Remuneration Act, 1976 (Repealed).
• Code on Wages, 2019, Ministry of Labour and Employment, Government of India.
• Section 3(1) – Equal remuneration clause.
• Section 3(2) – Recruitment non-discrimination clause.
• Section 2(y) – Definition of wages.
• Section 51–53 – Penalties and offences.