50 The Equal Remuneration Act, 1976
This chapter takes up the Equal Remuneration Act, 1976 — the statute that mandates equal pay for equal work by men and women, and prohibits sex-based discrimination in recruitment and conditions of service.
50.1 Background and Object
The Act gives statutory effect to:
- Article 39(d) of the Constitution — equal pay for equal work for men and women;
- ILO Convention C100 (Equal Remuneration, 1951) — ratified by India in 1958;
- ILO Convention C111 (Discrimination — Employment and Occupation, 1958) — ratified by India in 1960.
| Aim | What it does |
|---|---|
| Equal remuneration | For men and women workers performing same or similar work |
| Non-discrimination in recruitment | Equal opportunity in hiring |
| Non-discrimination in conditions of service | Promotion, training, transfer on equal terms |
50.2 Coverage and Definitions
The Act applies to every establishment — public or private. Key definitions in §2:
| Section | Term | Meaning |
|---|---|---|
| 2(g) | Remuneration | Basic wage and any additional payment, in cash or kind, paid in respect of employment or work done |
| 2(h) | Same work or work of similar nature | Work in respect of which skill, effort and responsibility required are the same, when performed under similar working conditions |
| 2(b) | Employer | Person providing the employment |
| 2(c) | Establishment | Any office, undertaking or other place where employment is carried on |
50.3 Equal Remuneration — Section 4
The core obligation: no employer shall pay to any worker, employed in an establishment, remuneration at rates less favourable than those at which remuneration is paid to workers of the opposite sex performing the same work or work of a similar nature.
The employer must also not reduce the rate of remuneration of any worker in order to comply with this section. Where rates differ on the basis of sex, the higher rate prevails.
50.4 Non-Discrimination in Recruitment — Section 5
Section 5 prohibits discrimination on the basis of sex in:
- recruitment for the same work;
- promotions;
- training;
- transfers.
Subject to a narrow exception: where the employment of women is prohibited or restricted by or under any law for the time being in force.
50.5 Advisory Committee — Section 6
The appropriate government must constitute one or more Advisory Committees to advise on increasing employment opportunities for women. The Committee should include at least half women members.
50.7 Records and Inspectors — Sections 8 and 9
Employers must maintain registers of workers in the prescribed form. Inspectors have powers of entry, examination of records and inquiry.
50.8 Penalties — Sections 10 and 11
| Section | Offence | Penalty |
|---|---|---|
| 10(1) | Failure to maintain registers | Fine up to ₹10,000 |
| 10(2) | Pay unequal remuneration / discriminate in recruitment / conditions | Imprisonment up to 1 month or fine up to ₹10,000, or both |
| 10(3) | Repeat offence | Imprisonment 3 months to 1 year or fine ₹10,000 to ₹20,000, or both |
| 11 | Cognisance | Court of Magistrate of First Class or above |
50.9 Application of the Act — Section 16
Where the conditions of service or the basis of payment differ for genuine reasons (e.g. seniority, skill differential), the Act does not apply. The qualification protects bona fide differentiation but cannot be used to mask sex-based discrimination.
50.10 Position under the Code on Wages, 2019
The Equal Remuneration Act has been subsumed under the Code on Wages, 2019 with one important expansion:
- The Code prohibits discrimination on grounds of sex between male and female employees, and on the basis of gender — recognising more than two categories.
- Same provisions for recruitment, conditions of service and remuneration apply.
- Penalties revised upward.
50.11 Important Case Law
| Case | Year | Holding |
|---|---|---|
| Randhir Singh v. Union of India | 1982 | Equal pay for equal work read into Article 14, 16, 39(d) |
| Mackinnon Mackenzie & Co. v. Audrey D’Costa | 1987 | Equal Remuneration Act extended to confidential lady stenographers; mere assignment to a separate cadre cannot mask discrimination |
| Air India v. Nargesh Mirza | 1981 | Pre-Act case; struck down rules requiring termination of air hostesses on first pregnancy |
| State of Punjab v. Jagjit Singh | 2017 | Equal pay for daily-rated and temporary workers performing the same duties as regular employees |
50.12 Critique
The Equal Remuneration Act has been criticised on three grounds:
- Limited reach in informal sector — most workers outside the Act’s enforcement.
- Weak penalties relative to size of pay gap.
- Same work or similar nature test is narrow; does not address occupational segregation that perpetuates gender pay gaps.
The Code on Wages broadens the principle but the structural dimensions of the gender pay gap (chapter 46) require complementary policy beyond pay-equality law.
50.13 Practice Questions
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- Equal Remuneration Act, 1976 — gives effect to Article 39(d) + ILO C100 (1951) + ILO C111 (1958).
- Coverage: every establishment (public and private).
- §4 — equal remuneration; higher rate prevails.
- §5 — non-discrimination in recruitment, promotion, training, transfer.
- §6 — Advisory Committee with ≥ half women.
- §7 — claims authority; appeals.
- Mackinnon Mackenzie (1987) — separate cadre cannot mask discrimination.
- Randhir Singh (1982); Jagjit Singh (2017) — Article 14/16/39(d) read together.
- Code on Wages, 2019 — broadens to gender; same protections; raised penalties.