In a world striving toward inclusivity and fairness, gender equality in the workplace remains a cornerstone of progressive societies. Yet, the gender pay gap continues to persist across industries and sectors. In India, to tackle this disparity and ensure fair treatment, the government enacted the Equal Remuneration Act, 1976—a landmark legislation aimed at promoting equality in pay and employment opportunities for men and women. 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.
But what does this Act really mean? And how does it impact gender dynamics in the workplace today? Let’s unpack the essentials.
What Is the Equal Remuneration Act, 1976?
The Equal Remuneration Act of 1976 is a law in India that ensures equal pay for men and women performing the same or similar work, promoting gender equality in the workplace by prohibiting discrimination in terms of wages and recruitment.
Objectives of the Act:
- To ensure equal pay for equal work for both men and women.
- To prevent discrimination on the grounds of gender in recruitment and conditions of employment.
- To promote social justice and economic independence for women.
Key Provisions:
Prohibition of Gender-Based Discrimination:
The ERA prohibits discrimination based on gender in terms of remuneration for any job, regardless of occupation. Employers are prohibited from providing different compensation solely based on an individual’s sex. The Act emphasizes valuing employees without regard to their gender or sexual orientation.
Wage Revision Requirement
The Act mandates periodic wage revisions, taking into account changes in the cost of living and wage history, to ensure equal pay for equivalent work performed by both men and women. It guarantees that individuals receive equal wages for equal positions within the same organization.
Establishment of Wage Fixing Authority:
The Act establishes a wage-fixing authority appointed by the government to ensure that wages are fairly determined and appropriate compensation is provided for various job roles across workplaces in India. Job postings must adhere to competitive compensation strategies, explicitly stating the basis of wage determination and its applicability to both genders.
Promoting Balanced Gender Pay Ratios:
The Equal Pay Act ensures that all qualified individuals, regardless of gender, receive equitable wages, and female candidates are not subject to discrimination in training, transfers, or promotions. Benefits such as dearness allowance, minimum wage rates, and travel allowances should be consistent for all employees performing similar duties or responsibilities. Bonuses must range from a minimum of 8.33% to a maximum of 20%.
Why the Act Still Matters Today
Despite the existence of the Equal Remuneration Act, gender pay gaps remain a reality. According to recent reports, women in India still earn, on average, 17-20% less than men for doing the same job. This discrepancy stems from multiple factors:
- Occupational segregation
- Lack of enforcement
- Societal bias and stereotypes
- Glass ceiling effects
While the law is a crucial tool, implementation and awareness are equally vital. Both employers and employees need to be informed about their rights and obligations under the Act
Challenges in Enforcement
- Lack of awareness: Many employees are unaware that they have legal protection against wage discrimination.
- Limited reporting: Fear of retaliation often prevents women from raising concerns.
- Corporate culture: Informal practices and gender bias often override formal policies.
Recent Developments and Repeal
In 2020, the Equal Remuneration Act, 1976 was subsumed under the Code on Wages, 2019, as part of India’s labor law reforms. The Code retains the spirit of the Act, ensuring:
- No gender-based discrimination in wages.
- Equal pay for equal work across all sectors.
- Broader coverage and simplified compliance for employers.
While the standalone Act is no longer in force, its principles continue to guide India’s modern labor framework.
How Can Organizations Promote Pay Equity?
Here are a few actionable steps organizations can take:
- Conduct regular pay audits to identify and address wage disparities.
- Ensure transparency in compensation and promotion criteria.
- Implement gender-sensitive hiring and evaluation policies.
- Offer training and awareness programs on gender equality and legal rights.
- Foster an inclusive work culture that values diversity and equity.
Conclusion: Toward a Fairer Future
The Equal Remuneration Act, 1976, laid the groundwork for fair pay practices in India, sending a clear message that gender should not determine value in the workplace. While the legislation has evolved, its essence remains critical in the ongoing battle for economic justice and workplace equality.
As we move forward, awareness, implementation, and cultural change will be key in turning the law’s promise into everyday practice.
Because in a truly progressive workplace, equal work deserves equal pay—without exception.
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Author Aashima Srivastava is currently pursuing 4th year in the BBALLB program at Lovely Professional University, New Delhi.
