Sections 3 and 4 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 3 of the Code on Wages, 2019 bars an employer from discriminating on the ground of gender in wages for the same work or work of a similar nature, forbids cutting anyone's wages to comply, and bars sex-based discrimination in recruitment. Section 4 says who decides whether two jobs are the same or similar.
No discrimination on the ground of gender in matters relating to wages by the same employer, for the same work or work of a similar nature, in an establishment or any unit of it (s.3(1)). An employer must not reduce anyone's wage rate to comply (s.3(2)(i)) and must not discriminate on the ground of sex while recruiting for the same or similar work and in the conditions of employment, except where employment of women in such work is prohibited or restricted by law (s.3(2)(ii)). Disputes on whether work is same or similar go to an authority notified by the appropriate Government (s.4).
Section 3(1): equal wages for the same work
| Element | Text |
|---|---|
| Rule | No discrimination among employees on the ground of gender in matters relating to wages |
| By whom | The same employer |
| Where | In an establishment or any unit thereof |
| For what | The same work or work of a similar nature done by any employee |
Note the following.
- Gender, not only women. The text says "on the ground of gender" and "among employees". The rule protects any employee from gender-based wage differences, and "any gender" appears in the definition of same work.
- "Matters relating to wages". This is wider than the base rate. Read it with the definition of wages in section 2(y), whose second proviso says that for equal wages to all genders, conveyance allowance, house rent allowance, award or settlement remuneration and overtime allowance are taken for computation of wage.
- Unit by unit. The comparison is within an establishment or any unit thereof, by the same employer. The text does not say that pay must be equal across different employers.
- Same or similar work. The test is in s.2(v): skill, effort, experience and responsibility required are the same under similar working conditions, with differences not of practical importance disregarded. See our article on that definition.
Employers who want a pay-equity check of grades, allowances and increments can get guidance from our employment and labour law advisory service.
Section 3(2)(i): no cutting wages to comply
If an employer finds a gender gap, the fix is to raise the lower rate. Section 3(2)(i) says no employer shall, for the purposes of complying with sub-section (1), reduce the rate of wages of any employee. This prevents "levelling down", where, for example, a higher-paid group's rate is cut to match the lower-paid group's.
Section 3(2)(ii): recruitment and conditions of employment
No employer shall make any discrimination on the ground of sex while recruiting any employee for the same work or work of similar nature and in the conditions of employment.
There is one exception: where the employment of women in such work is prohibited or restricted by or under any law for the time being in force. The Code does not list those laws. So if another law bars or restricts women from certain work, the recruitment rule does not override it. The exception is narrow: it applies only where the other law prohibits or restricts such employment.
A drafting note. Section 3(1) says "gender" and s.3(2)(ii) says "sex". The text uses both words and does not define either, so apply the section as written and do not treat the words as meaning different things without advice.
Section 4: who decides a dispute
Section 4 says that where there is a dispute whether work is of the same or similar nature for the purposes of section 3, the dispute shall be decided by such authority as may be notified by the appropriate Government.
| Point | Detail |
|---|---|
| Who decides | An authority notified by the appropriate Government |
| What is decided | Whether work is of the same or similar nature for s.3 |
| Time limit or form | Not stated in s.4 |
The section does not name the authority, give a time limit or set a procedure. Check the notification of the appropriate Government for the authority that applies to your establishment. "Notified" means published in the Gazette of India or the Official Gazette of a State (s.2(t)), and for the appropriate Government see s.2(d). The Central Rules, 2026 apply only where the Central Government is the appropriate Government; where the State Government is, the State's own wage rules apply. This article does not describe any Central Rule on equal wages because none is needed to read sections 3 and 4.
Penalties, claims and the other enforcement provisions of the Code are in later chapters and are covered in their own articles. The existing site guide on penalties under the Equal Remuneration Act deals with the old law only.
What employers should do
- Build a job grid. Record skill, effort, experience and responsibility for each role and note working conditions.
- Review allowances. Include the four items in the second proviso to s.2(y) when you compare pay for different genders.
- Fix upward. If a gap cannot be justified by a difference of practical importance, raise the lower rate; do not reduce the higher.
- Review hiring ads and offers. Do not differentiate by sex in recruitment or conditions for the same or similar work, subject to legal restrictions on women's employment.
- Keep records. If a dispute goes to the notified authority, your job grid and pay records will be the evidence.
Example. Two executives in a customer-support team, one male and one female, handle the same queue with the same training under the same shift conditions. The female executive's total pay is lower with no difference of practical importance in the work. Under s.3(1) the employer must not pay differently on gender grounds. To comply, the employer must raise the lower pay; s.3(2)(i) bars cutting the male executive's rate. If the employer says the work is not the same, the dispute is for the authority notified under s.4.
Need help reviewing pay equity?
Pay differences that look small can become disputes when they follow gender lines. Our employment and labour law advisory team can help you review grades, allowances and hiring practices against sections 3 and 4 and prepare a defensible job grid.
Key takeaways
- Section 3(1) bars gender discrimination in wages by the same employer for the same work or work of a similar nature.
- Same or similar work is tested under s.2(v): skill, effort, experience and responsibility, under similar working conditions.
- Section 3(2)(i) bars reducing anyone's wage rate to comply.
- Section 3(2)(ii) bars sex discrimination in recruitment and conditions of employment, except where law prohibits or restricts the employment of women.
- Section 4 sends disputes on same or similar work to an authority notified by the appropriate Government.
Read next
- Section 2: same work or work of a similar nature and other definitions
- Section 5: payment of the minimum rate of wages
- Equal Remuneration Act versus the Code on Wages
- Introduction to the Equal Remuneration Act, 1976
Disclaimer: Based on the Code on Wages, 2019 (as enacted) and, where noted, the Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026), as on 1 October 2026. The Code is in force from 21 November 2025; State Governments make their own rules for establishments where the State is the appropriate Government, and wage rates are notified separately. Verify the current position before acting.