Guide
Equal pay for women and men
No discrimination on the ground of gender in wages, recruitment or conditions of employment for the same or similar work, under the Code on Wages, 2019.
For employers and HR
In short
- An employer may not discriminate between employees on the ground of gender in wages for the same work or work of a similar nature s. 3(1).
- An employer may not lower anyone’s wages to remove a difference in pay s. 3(2)(i).
- An employer may not discriminate on the ground of sex when recruiting for the same or similar work, or in conditions of employment, unless the law prohibits or restricts employing women in that work s. 3(2)(ii).
- A dispute about whether jobs are the same or similar is decided by an authority the Government notifies s. 4.
Does this apply to you?
- Yes, if you employ anyone: the rule covers every establishment and every unit of it, and compares employees of the same employer s. 3(1).
- It covers all employees, including managerial, supervisory, administrative and technical staff, not only workers s. 2(k).
- The provision is in force s. 3.
What the law requires
Equal wages for the same or similar work
- Do not discriminate on the ground of gender in matters relating to wages for the same work or work of a similar nature s. 3(1).
- Work is the same or similar when the skill, effort, experience and responsibility it needs are the same, under similar working conditions s. 2(v).
- Differences in skill, effort, experience or responsibility between employees of different genders do not make the work dissimilar unless they are of practical importance to the terms and conditions of employment s. 2(v).
- “Wages” here has the Code’s meaning, including basic pay, dearness allowance and retaining allowance s. 2(y).
No levelling down
- Do not reduce the rate of wages of any employee to comply with the rule s. 3(2)(i).
Recruitment and conditions of employment
- Do not discriminate on the ground of sex when recruiting for the same or similar work, or in conditions of employment s. 3(2)(ii).
- The only exception is work in which the law prohibits or restricts the employment of women s. 3(2)(ii).
Disputes about whether work is similar
- Whether kinds of work are the same or similar is decided by the authority the appropriate Government notifies s. 4.
- For establishments of the Central sphere, the Central Government has notified the Deputy Chief Labour Commissioners (Central) as that authority, each for the area listed S.O. 2450(E).
Advisory Boards
- Women must make up one-third of the members of the Central Advisory Board on wages s. 42(2).
- The Boards also advise on providing increasing employment opportunities for women s. 42(3).
Penalties
- Paying an employee less than is due under the Code can bring a fine of up to fifty thousand rupees, and a repeat within five years imprisonment of up to three months or a fine of up to one lakh rupees, or both s. 54(1)(a)–(b).
- Contravening any other provision of the Code can bring a fine of up to twenty thousand rupees s. 54(1)(c).
- Before prosecuting for such a contravention, the Inspector-cum-Facilitator must give the employer a written direction and time to comply, unless the same violation is repeated within five years s. 54(3).
Numbers at a glance
| What | Figure | Where |
|---|---|---|
| Women on the Central Advisory Board | one-third of the members | s. 42(2) |
| Fine for paying less than is due | up to ₹50,000 | s. 54(1)(a) |
| Fine for other contraventions | up to ₹20,000 | s. 54(1)(c) |
| Repeat offences counted within | five years | s. 54(1)(b) |
Records and deadlines
- The Code sets no separate register for equal pay; the wage registers and wage slips the Code requires show what each employee is paid s. 50.
- A worker’s claim for wages withheld or underpaid can be filed within three years s. 45(6).
Not covered here
For workers
In short
- You must not be paid less because of your gender than someone of another gender doing the same or similar work for the same employer s. 3(1).
- Your employer cannot fix a difference by cutting anyone’s pay s. 3(2)(i).
- You must not be treated differently because of your sex when you are recruited, or in your conditions of employment, for the same or similar work s. 3(2)(ii).
Does this apply to you?
- Yes, if you are an employee, whatever your role: the rule covers skilled, unskilled, manual, clerical, technical, supervisory and managerial work s. 2(k).
- It compares you with employees of the same employer, in the same establishment or any unit of it s. 3(1).
What the law requires
What counts as the same or similar work
- Work is the same or similar when it needs the same skill, effort, experience and responsibility, under similar working conditions s. 2(v).
- Small differences between jobs do not count unless they matter in practice to the terms and conditions of employment s. 2(v).
What your employer must not do
- Pay you less, in any part of your wages, because of your gender s. 3(1).
- Lower another employee’s pay instead of raising yours s. 3(2)(i).
- Treat you differently because of your sex in recruitment or conditions of employment, except where the law prohibits or restricts women from that work s. 3(2)(ii).
Numbers at a glance
| What | Figure | Where |
|---|---|---|
| Time to file a claim for unpaid wages | three years | s. 45(6) |
| Compensation the authority can order | up to ten times the amount owed | s. 45(2) |
What to do if it isn’t followed
- If your employer says your work is not the same or similar, the question is decided by the authority the Government has notified s. 4; in the Central sphere, that is the Deputy Chief Labour Commissioner (Central) for your area S.O. 2450(E).
- You, a registered trade union you belong to, or an Inspector-cum-Facilitator can file a claim for wages you were not paid s. 45(4).
- File within three years; the authority can accept a later claim if there is good reason s. 45(6).
- An employee or a registered trade union can also make a complaint to the court about an offence under the Code s. 52(1).