Introduction
Did you know the gender pay gap in India remains greater than 19% in the majority of sectors? Wage discrimination persists in many forms despite legal structures such as the Equal Remuneration Act. The Equal Remuneration Act, of 1976, was established to prohibit pay disparity and to ensure equal pay for equal work between men and women. This law represents the new standard: fair wages, non-discrimination in hiring and promotions, and the establishment of a more inclusive workforce. However, its full implementation is hindered by enforcement challenges, cultural norms, and a lack of awareness about employee rights.
This article provides an overview of the Equal Remuneration Act, its purpose and key provisions, the challenges in its implementation, the landmark cases, and, finally, the future of wage equality in India. This information is vital for employers, employees, and policymakers who want to ensure a level playing field and a transparent workplace culture. Join us as we explore how this law can help close the gender wage gap and promote equality in the workplace.
Read our other article Gender Equality in Indian Employment: Legal Framework and Challenges
What is the Equal Remuneration Act?
- Historical Context: The Act came into force in 1976 to align India with the ILO (International Labour Organisation) conventions on wage equality. It was a landmark step toward ending workplace discrimination.
- The objective of the Act: The Compensation Act aims to eliminate discrimination in awarding compensation based on gender, as well as general discrimination between men and women performing the same or similar tasks.
- Constitutional Mandate: This Statute is consistent with the mandate under Article 39(d) of the Indian Constitution, which directs the State to secure equal pay for equal work for both men and women.
- Coverage: The Act covers government jobs, private sector enterprises, and unorganized workforce.
Key Provisions of the Equal Remuneration Act
- Equal Pay for Equal Work: Employers must pay the same for the same or similar work, regardless of the employee’s gender.
- Prohibition of Gender Discrimination: Discrimination based on gender is prohibited in hiring, promotion, and transfer decisions.
- Hire & Job Openings: Employers must adopt non-gender-biased hiring techniques.
- Employer Responsibilities: Maintain records and registers as evidence of your compliance. Avoid engaging in discriminatory wage practices. Implement workplace equality policies.
- Government Oversight & Enforcement: Labor inspectors and regulatory agencies monitor compliance and penalty contra violators.
Gender Pay Gap in India: Challenges & Statistics
- India’s Gender Wage Gap: Gender wage disparity remains deeply entrenched in India, with women earning 19% less than men for the same work.
- Key Sectors Affected: IT & Technology –Women receive, on average 25% lower wages than men.Manufacturing & Construction – Women earn significantly less than men. Agriculture and Unorganized Sector – A lack of legal awareness contributes to significant wage disparities.
- Reasons for the Wage Gap: Occupational Segregation – More women in low-wage positions.Limited Opportunities for Career Advancement –Women are often promoted later than men.Cultural & Social Norms — Biases in hiring and remuneration persist due to ingrained social expectations
Landmark Supreme Court Cases on Equal Pay
Important/Significant Supreme Court Rulings:
- Mackinnon Mackenzie & Co. Ltd v. Audrey D’Costa (1987):
- The Court ruled that female stenographers were entitled to the same pay as male stenographers.
- State of Punjab v. Jagjit Singh (2016)
- The ruling emphasized that temporary workers must also be paid equally for equal work.
- Randhir Singh v. Union of India (1982):
- The Judgement established coverage of equal pay in both public and private sectors.
Legal Compliance & Penalties for Wage Discrimination
- Employers’ Liability: Organizations must comply with wage parity laws.
- Penalties for Non-Compliance: Penalty of ₹10,000 for offenses. A jail term of up to one year for repeat offenders.
- Employee Rights: Employees have the right to file complaints with the Labor Department. Legal remedies for cases can be sought from Labour Courts.
Frequently Asked Questions (FAQs) on the Equal Remuneration Act
1. Who is covered under the Equal Remuneration Act?
The Act applies to all whether it is government institutions, private companies, or the unorganized sector. It applies to men and women alike and covers equal pay for equal work in all sectors.
2. How does an employee report wage discrimination?
An employee who is experiencing wage discrimination can:
- Contact their HR department (if applicable).
- File a complaint with the Labour Commissioner in their area.
- Seek legal redress from the Labour Court.
- Reach out to trade unions or legal aid groups for representation.
3. Are there any exceptions to the rule of equal pay?
Yes, they can but the employers can pay different rates based on:
- Experience, skills, or qualifications.
- Length of service or seniority
- Type and nature of responsibility delegated
However, gender cannot be used to justify a pay gap.
Conclusion
The Equal Remuneration Act ensures equal pay for men and women working in the same or similar nature of work. Despite its significance, wage discrimination remains prevalent in many industries, even though it is illegal. Employers must take proactive steps to ensure fair pay and workers must know their rights under the law.
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