Equal Remuneration Act, 1976

The Equal Remuneration Act, 1976 (ERA) is a pivotal Indian labour law enacted on February 11, 1976, to ensure gender equality in wages and prevent discrimination against women in employment matters.

It was promulgated as an Ordinance in 1975 during the International Women’s Year and later passed as an Act to align with Article 39(d) of the Indian Constitution, which directs the State to secure equal pay for equal work for men and women.

The Act addresses systemic gender-based wage disparities, promoting economic empowerment for women by mandating equal remuneration for the same or similar work.

Explanation: The ERA was introduced to combat exploitation and inequality in workplaces, where women often received lower pay for identical roles due to societal biases. It emphasizes that remuneration should be based on the nature of work, skill, effort, and responsibility, not gender, fostering inclusive economic growth.

Note on Current Status (as of November 2025): The ERA has been subsumed under the Code on Wages, 2019, which consolidates four wage-related laws (including the Payment of Wages Act, 1936; Minimum Wages Act, 1948; Payment of Bonus Act, 1965; and ERA). However, full implementation of the Code on Wages remains delayed nationwide. As of late 2025, while many states have pre-published or notified draft rules, central enforcement is pending, and the ERA continues to apply in practice until the Code is fully notified and operational.

Objectives

• To provide for equal remuneration to men and women workers for the same work or work of a similar nature.
• To prevent discrimination on grounds of sex in recruitment, promotions, training, transfers, and other employment conditions.
• To promote gender equality in workplaces, aligning with international standards like ILO Convention No. 100 on Equal Remuneration.
• Explanation: The Act goes beyond mere wage equality by addressing broader discriminatory practices, ensuring women’s participation in the workforce without economic disadvantage.

Applicability and Key Definitions (Sections 1 & 2)

• Applicability: Extends to the whole of India, covering all establishments (government, private, organized, and unorganized sectors) including factories, mines, plantations, banks, ports, oilfields, and any notified entity. It applies regardless of the number of employees. The Central Government enforces it for establishments under its control (e.g., railways, central PSUs), while State Governments handle others.
• Explanation: This broad scope ensures protection across diverse sectors, though challenges persist in informal economies where enforcement is weak.
• Key Definitions:
• Remuneration: Basic wages or salary, plus additional emoluments payable in cash or kind (e.g., dearness allowance, house rent allowance), excluding overtime or bonuses.
• Same Work or Work of a Similar Nature: Work requiring similar skill, effort, and responsibility under comparable conditions; minor differences do not justify unequal pay.
• Employer: Includes heads of departments, occupiers of factories/mines, or managers.
• Worker: Any person employed for wages in skilled/unskilled, manual/clerical work; excludes apprentices.
• Appropriate Government: Central or State, based on establishment control.
• Explanation: These definitions prevent loopholes, ensuring gender-neutral evaluation of job roles. For instance, “similar nature” allows comparison across slightly varying tasks.

Key Provisions (Chapters II-IV)

• Duty to Pay Equal Remuneration (Section 4): Employers must pay equal wages to men and women for the same or similar work. If disparities exist, lower wages must be raised to match the higher rate; no reduction allowed.
• Explanation: This provision enforces upward harmonization, protecting workers from pay cuts while promoting equity.
• No Discrimination in Recruitment and Conditions (Section 5): Prohibits gender-based discrimination in hiring for the same or similar work. Post-1987 amendment, extends to promotions, training, and transfers. Exceptions: Special protections for women (e.g., night work bans) or reservations.
• Explanation: Aims to eliminate bias at entry and career progression levels, though occupational segregation (e.g., women in low-skill roles) remains a hurdle.
• Advisory Committee (Section 6): Appropriate Government forms committees (at least 50% women members) with employer, worker, and independent reps to advise on increasing women’s employment opportunities and reviewing work factors.
• Explanation: Promotes stakeholder involvement for policy recommendations, ensuring women’s voices in labour market reforms.
• Authorities for Claims (Section 7): Appointed officers (not below Labour Officer rank) hear complaints on unequal pay, directing payment of differentials with 6% interest if due.
• Explanation: Provides accessible dispute resolution, with appeals to higher authorities within 30 days.
• Maintenance of Records (Section 8): Employers must keep registers of workers, wages, and other details as prescribed.
• Explanation: Facilitates inspections and transparency.
• Inspectors (Section 9): Appointed to enforce compliance; powers include entering premises, examining records, and taking evidence.
• Explanation: Ensures proactive monitoring to deter violations.

Penalties and Offences (Chapter V, Sections 10-12)

• Violations: Unequal pay, discrimination, or failure to comply: First offence – Fine ₹10,000-₹20,000, imprisonment 3 months-1 year, or both. Subsequent: Imprisonment up to 2 years.
• Procedural Lapses (e.g., no records): Fine up to ₹10,000, imprisonment up to 1 month, or both.
• Obstruction of Inspectors: Fine up to ₹500.
• Company Liability: Directors/managers liable unless they prove diligence.
• Cognizance: Only on complaint by appropriate authority, aggrieved person, or recognized welfare institution; limitation 1 year.
• Explanation: Graduated penalties emphasize deterrence, with corporate accountability to prevent evasion.

Miscellaneous (Sections 13-16)

• Power to make rules for implementation.
• Act overrides other laws on remuneration but not beneficial provisions.
• Explanation: Ensures harmony with laws like Minimum Wages Act.

Important Case Laws

• Mackinnon Mackenzie & Co. Ltd. v. Audrey D’Costa (1987 AIR 1281): Female confidential stenographers paid less than males for similar work. Supreme Court held that unequal pay violates the ERA; directed job evaluation based on gender-neutral factors like skill and responsibility. Explanation: Reinforced objective assessment of “similar work,” aligning with ILO standards; burden on employer to justify differentials.
• Air India v. Nergesh Meerza (1981 AIR 1829): Challenged discriminatory service rules retiring female air hostesses on marriage or pregnancy. Supreme Court struck down as unconstitutional under Articles 14 and 15, extending ERA principles to conditions of service. Explanation: Broadened ERA’s scope to non-wage discrimination, promoting equal treatment.
• Randhir Singh v. Union of India (1982 AIR 879): Driver in Delhi Police paid less than counterparts in other forces. Court invoked Articles 14, 16, and 39(d) for equal pay, treating it as a fundamental right. Explanation: Though not directly under ERA, it strengthened the Act by constitutionalizing equal pay, applicable even without statutory claims.
• Female Workers v. Controller, DDA (Delhi High Court, 1998): Female muster-roll workers claimed equal pay with male regulars. Court upheld under constitutional equality, shifting burden to employers. Explanation: Highlighted ERA’s role in casual labour, ensuring parity beyond formal employment.