Labour Laws and Practice · Law of Wages

Equal Remuneration and Non-Discrimination under the Code on Wages, 2019

Updated 11 October 2026 · Fact-checked

Section 3 of the Code on Wages, 2019 bars an employer from discriminating on the ground of gender in wages for the same work or work of a similar nature. It also bars gender discrimination in recruitment and conditions of employment. To solve a question, test whether the work is the same or similar, then apply section 3.

Understand Equal Remuneration and Non-Discrimination

The Code on Wages, 2019 replaces the older equal remuneration law with a rule inside the Code itself. Section 3 says there must be no discrimination in an establishment or any unit of it among employees on the ground of gender. The rule covers matters relating to wages paid by the same employer for the same work or work of a similar nature.

The key test is same work or work of a similar nature. Section 2(v) defines it. It means work where the skill, effort, experience and responsibility required are the same, when done under similar working conditions. Any difference in these between employees of different genders must be not of practical importance in relation to the terms and conditions of employment. So a small difference on paper does not justify a pay gap.

Section 3(2) adds two duties on the employer. First, to comply with equal pay, the employer cannot reduce the wage rate of any employee. Equality must be reached by raising pay, not by cutting. Second, the employer cannot discriminate on the ground of sex while recruiting for the same work or work of similar nature, or in the conditions of employment. The exception: where the law prohibits or restricts the employment of women in that work.

Section 4 handles disputes. If there is a dispute whether work is of the same or similar nature, the authority notified by the appropriate Government decides it.

The meaning of wages matters too. Section 2(y) includes basic pay, dearness allowance and retaining allowance. It excludes items such as house rent allowance, conveyance allowance and overtime. But the second proviso says that for equal wages to all genders and for payment of wages, the emoluments in clauses (d), (f), (g) and (h) are taken into computation. These are conveyance allowance or travel concession, house rent allowance, remuneration under an award, settlement or court or Tribunal order, and overtime allowance. So when you compare pay between genders, these items are counted.

Finally, section 59 puts the burden of proof on the employer where a claim is filed for non-payment or less payment of wages.

Key rules to remember

Section 3(1): equal wages rule: No gender discrimination in wages + same employer + same work or work of a similar nature; Applies in an establishment or any unit of it, among employees.
Section 3(2)(i): no pay cut: Equality cannot be achieved by reducing any employee's wage rate; The employer must level up, not down.
Section 3(2)(ii): recruitment and conditions: No discrimination on ground of sex in recruitment for same or similar work and in conditions of employment; Exception: where employment of women in such work is prohibited or restricted by or under any law in force.
Section 2(v): same or similar work: Skill, effort, experience and responsibility are the same + similar working conditions + any gender-based difference not of practical importance; All elements must be tested on the facts.
Section 2(y) second proviso: For equal wages and payment of wages, count clauses (d), (f), (g), (h); Conveyance allowance or travel concession, house rent allowance, award or settlement remuneration, overtime allowance.
Section 4: disputes: Dispute on same or similar nature of work decided by authority notified by the appropriate Government; Not decided by the employer.
Section 59: burden of proof: Burden to prove dues were paid lies on the employer; Applies to claims for non-payment or less payment of wages or unauthorised deductions.

How to solve Equal Remuneration and Non-Discrimination questions

Use this provision, analysis, conclusion method for any case question on equal remuneration.

1Identify the claim: unequal pay, discriminatory recruitment, or unequal conditions of employment.
2State section 3(1) and 3(2) in plain words.
3Test same or similar work using section 2(v): skill, effort, experience, responsibility and working conditions. Say whether differences are of practical importance.
4Check that the comparison is within the same employer and the same establishment or unit.
5Compute wages as the Code defines them. Add back conveyance, house rent allowance, award remuneration and overtime for the equality comparison.
6Check any employer defence, such as a law restricting women's employment in the work, for recruitment.
7If the dispute is about whether the work is similar, say the notified authority under section 4 decides it, and mention the employer's burden under section 59 for wage claims.
8Conclude clearly and state the remedy: raise the lower wage without reducing anyone's pay.

Quickest way: Four-question check

When to use it: Use when time is short and the case is a short fact pattern.

Is the work same or similar under section 2(v)?
Is the difference based on gender?
Did the employer cut anyone's wage to fix it, or discriminate at recruitment or in conditions?
Is any legal restriction on women's employment in that work relevant?
Write the conclusion citing sections 3 and 4, and section 59 for burden of proof.

Common mistakes in Equal Remuneration and Non-Discrimination

Saying equal pay applies only to identical jobs.
Students read only the words 'same work'.
Fix: Section 3 also covers work of a similar nature, defined in section 2(v).
Letting the employer equalise by lowering the higher wage.
It seems a simple way to remove the gap.
Fix: Section 3(2)(i) bars reducing the wage rate of any employee to comply.
Treating section 3 as limited to wages.
The title mentions only remuneration.
Fix: Section 3(2)(ii) also covers recruitment and conditions of employment.
Leaving out the exception.
Students remember only the prohibition.
Fix: Recruitment discrimination is not barred where a law prohibits or restricts the employment of women in that work.
Comparing only basic pay, DA and retaining allowance.
Students stop at the main wages definition.
Fix: For equal wages, the second proviso to section 2(y) adds clauses (d), (f), (g) and (h).
Saying the employer decides if work is similar.
Students overlook section 4.
Fix: The authority notified by the appropriate Government decides.

Worked examples

Example 1

Sunita and Rahul both work as quality inspectors at the same unit of Bharat Components Ltd. Their skill, effort, experience and responsibility are the same, and they work in the same conditions. Sunita is paid less only because she is a woman. Advise Sunita.

Show the solution

Provision: section 3(1) bars gender discrimination in wages by the same employer for the same work or work of a similar nature.
Analysis: both are quality inspectors in the same unit with the same skill, effort, experience, responsibility and conditions. This fits section 2(v).
The only reason for the gap is gender. No practical-importance difference exists.
Remedy: the employer must remove the gap. Under section 3(2)(i) it cannot do so by reducing Rahul's wage rate.
If Sunita claims less payment, section 59 puts the burden on the employer to prove the dues were paid.

Answer: Sunita has a valid claim under section 3. The employer must raise her wages to match Rahul's and cannot lower Rahul's pay to achieve equality.

Example 2

Kaveri Textiles advertises a vacancy for machine operators and says only men may apply. No law prohibits or restricts women from this work. Two women applicants dispute the condition. Is the employer's action valid? Who decides if the work is similar to that of other posts?

Show the solution

Provision: section 3(2)(ii) bars discrimination on the ground of sex while recruiting for the same work or work of similar nature and in conditions of employment.
Exception: it does not apply where employment of women in such work is prohibited or restricted by or under any law in force.
Analysis: the facts say no law prohibits or restricts women in this work, so the exception does not apply.
Conclusion on recruitment: the men-only condition is discriminatory and contravenes section 3(2)(ii).
On similarity of work: if the employer disputes whether the work is same or similar, section 4 says the authority notified by the appropriate Government decides.

Answer: The employer's men-only condition is not valid because the exception does not apply. A dispute over whether work is of similar nature is decided by the authority notified under section 4.

Exam tips

Quote section 3(1), 3(2)(i) and 3(2)(ii) separately; examiners look for all three limbs.
Always apply section 2(v) to the facts before concluding on discrimination.
Mention the second proviso to section 2(y) when the question gives allowances or overtime.
Cite section 4 for who decides a dispute on similar work and section 59 for burden of proof.
Close with a practical point: advise the employer to review pay structures and job descriptions.

Practice questions from Law of Wages

Equal Remuneration and Non-Discrimination: frequently asked questions

Does the Code on Wages, 2019 apply to recruitment as well as pay?

Yes. Section 3(2)(ii) bars discrimination on the ground of sex in recruitment for the same work or work of similar nature and in conditions of employment. The only exception is where a law prohibits or restricts women's employment in that work.

What is same work or work of a similar nature?

Section 2(v) defines it as work needing the same skill, effort, experience and responsibility under similar working conditions. Any difference between genders in these must not be of practical importance for the terms and conditions of employment.

Can an employer cut the higher wage to remove a pay gap?

No. Section 3(2)(i) says an employer shall not reduce the rate of wages of any employee to comply with the equal wages rule. The lower wage has to be raised.

Who decides if two jobs are of similar nature?

Section 4 says such a dispute is decided by the authority notified by the appropriate Government.