The principle of "
Equal Pay for Equal Work" is a foundational tenet of social
justice and gender equality. In India, despite constitutional guarantees and
earlier legislative efforts like the Equal Remuneration Act, 1976, wage
disparity based on gender has continued to exist across sectors and regions. The
enactment of the Code on Wages, 2019 marks a significant legislative reform that
not only subsumes earlier wage laws but also reaffirms the commitment to ensure
gender parity in remuneration.
This blog critically explores how the Code on
Wages addresses gender discrimination in pay, compares it with the earlier law,
analyses its alignment with constitutional and international obligations, and
evaluates its real-world application for working women across sectors.
Background: Gender Disparity in Pay in India
Gender pay gap refers to the difference in average earnings between men and
women in the workforce. According to the Global Gender Gap Report 2024 by the
World Economic Forum, India ranks low on the economic participation and
opportunity sub-index, with a significant wage gap between men and women. Women
often receive lower pay for performing the same or similar work due to
patriarchal attitudes, lack of awareness, limited bargaining power, and legal
loopholes in enforcement. This is especially acute in the informal sector, which
employs over 90% of India's female workforce.
Historically, to address this inequity, the Equal Remuneration Act, 1976 was
enacted as a direct response to constitutional mandates under the Directive
Principles of State Policy. However, enforcement challenges, narrow
interpretation by courts, and sectoral exclusions weakened its impact.
Equal Remuneration Act, 1976: A Precursor Law
The Equal Remuneration Act, 1976 aimed to ensure:
- Equal pay for men and women for the same or similar work.
- Non-discrimination in recruitment and service conditions on the grounds of gender.
While progressive in its intention, the Act had multiple limitations:
- Fragmented implementation – Wage-related complaints were handled separately from other labor grievances.
- Restricted coverage – Mainly focused on organized sectors, excluding the informal economy.
- Ambiguity in "similar work" – Courts sometimes demanded near-identical roles, allowing employers to circumvent the law.
- Poor enforcement – Absence of a strong monitoring and penal framework led to underreporting of violations.
Code on Wages, 2019: Unified, Modern Approach to Wage Equality
The Code on Wages, 2019, passed as part of India's labor law codification reforms, repeals and consolidates four wage-related laws:
- Payment of Wages Act, 1936
- Minimum Wages Act, 1948
- Payment of Bonus Act, 1965
- Equal Remuneration Act, 1976
Section 3(1)(b) of the Code is the key provision related to gender parity:
"There shall be no discrimination in employer's payment of wages to male and female workers for same work or work of a similar nature..."
This provision has the force of law and is backed by improved definitions, enforcement tools, and a wider scope. The phrase "same or similar work" is now legally defined under Section 2(y) as work requiring the same skill, effort, experience, and responsibility, performed under similar working conditions.
Major Advances under the Code (Compared to the 1976 Act)
Feature |
Equal Remuneration Act, 1976 |
Code on Wages, 2019 |
Legal Scope |
Standalone law |
Integrated with other wage laws |
Applicability |
Primarily organized sector |
Universal – all employees across sectors |
Gender Pay Protection |
Prohibits unequal wages |
Explicitly prohibits wage discrimination under Sec. 3(1)(b) |
Definition of Equal Work |
Not clearly defined |
Clearly defined under Section 2(y) |
Enforcement Mechanism |
Fragmented |
Unified Inspector-cum-Facilitator model |
Coverage of Workers |
Formal workforce |
Includes fixed-term, casual, contract, gig, and platform workers |
Relevant Constitutional Provisions
The principle of equal pay for equal work is rooted in the Constitution of India, both in the Fundamental Rights and Directive Principles:
- Article 14: Equality before law and equal protection of laws.
- Article 15(1): Prohibits discrimination on grounds of sex.
- Article 15(3): Empowers the State to make special provisions for women and children.
- Article 16(1) & (2): Equality of opportunity in public employment; no discrimination on grounds of sex.
- Article 39(d): (Directive Principle) States that there should be equal pay for equal work for both men and women.
- Article 42: Provision for just and humane conditions of work and maternity relief.
The Supreme Court in
Randhir Singh v. Union of India (1982 AIR 879) explicitly held that "equal pay for equal work" is not a mere policy but a constitutional guarantee flowing from Articles 14 and 39(d).
Judicial Support for Gender Pay Equality
Indian courts have played a pivotal role in upholding the principle of equal pay:
- Mackinnon Mackenzie & Co. Ltd. v. Audrey D'Costa (1987 AIR 1281): SC held that women stenographers were entitled to equal pay as their male counterparts if their duties were substantially the same.
- Air India v. Nergesh Meerza (1981 AIR 1829): Though dealing with service conditions, it touched upon gender-based classification and upheld equality principles.
- State of Punjab v. Jagjit Singh (2016): Equal pay extended even to contractual workers performing similar duties.
These cases affirm the justiciability and enforceability of wage equality under constitutional and statutory mandates.
International Commitments and Global Standards
India is a party to multiple international conventions that recognize wage parity:
- ILO Convention No. 100: Equal Remuneration Convention (ratified by India in 1958).
- ILO Convention No. 111: Discrimination (Employment and Occupation) Convention.
- UN CEDAW: Convention on the Elimination of All Forms of Discrimination Against Women: mandates State parties to ensure equal remuneration for work of equal value.
- SDG Goal 5: Achieve gender equality and empower all women and girls: includes equal pay as a target.
Real-World Impact and Practical Application
The Code on Wages, 2019 has far-reaching implications for Indian women workers, especially in:
- Informal Sector Inclusion: Domestic workers, agricultural laborers, and factory helpers—largely women—are now covered under the wage equality provision.
- Gig and Platform Workers: Increasingly, women working as delivery partners, ride-hailing drivers, or online freelancers can challenge wage discrimination under this Code.
- Fixed-Term Employment: With fixed-term workers getting equal pay and benefits under the law, it protects women often hired on contract or project basis.
- IT and Services Sector: The Code's universal scope includes startups, tech companies, and BPOs where women are often underpaid despite similar output.
Challenges in Enforcement
Despite its promise, implementation remains a concern:
- Lack of Awareness: Many women, especially in rural or informal sectors, are unaware of their wage rights.
- Weak Reporting Mechanisms: Fear of losing jobs prevents many from complaining.
- Burden of Proof: In many cases, the onus of proving "similar work" and "discrimination" falls on the employee.
- Private Sector Opacity: Employers in non-governmental sectors rarely publish salary data, limiting transparency.
Conclusion
The Code on Wages, 2019 offers a robust legal mechanism to combat gender-based
wage disparity and uphold the constitutional vision of economic equality. By
integrating wage laws, expanding coverage, and embedding the principle of equal
remuneration, the Code strengthens women's rights in the workplace. However, to
translate law into lived reality, enforcement agencies, employers, and civil
society must work together to ensure awareness, accessibility, and
accountability. Equal pay for equal work must not remain a legal slogan, but
become a workplace norm reflective of India's commitment to gender justice and
constitutional morality.
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