Section 3 and Section 4 of the Code on Wages, 2019: Prohibition of Gender Discrimination and Equal Work

Sections 3 and 4 of the Code on Wages, 2019 deal with equality in wages and employment where employees perform the same work or work of a similar nature. Section 3 prohibits specified gender-based discrimination, while Section 4 provides a mechanism for deciding disputes about whether work is the same or similar in nature.

Current legal status: The Code on Wages, 2019 was brought into force as part of the four labour codes with effect from 21 November 2025. The Central Government subsequently notified the Code on Wages (Central) Rules, 2026 for matters within the Central sphere.
On this page

Section 3: Prohibition of discrimination on ground of gender

Section 3 applies to an establishment or any unit of an establishment and regulates discrimination by the same employer in relation to employees doing the same work or work of a similar nature.

Section 3(1): There shall be no discrimination in an establishment or any unit thereof among employees on the ground of gender in matters relating to wages by the same employer, in respect of the same work or work of a similar nature done by any employee.

Section 3(2)(i): An employer cannot reduce the rate of wages of an employee merely for the purpose of complying with the equal-wage requirement in sub-section (1).

Section 3(2)(ii): An employer cannot discriminate on the ground of sex while recruiting an employee for the same work or work of a similar nature, or in the conditions of employment, except where employment of women in such work is prohibited or restricted by or under a law in force.

What Section 3 means

The provision covers more than the amount shown as basic pay. It prohibits gender discrimination in matters relating to wages where the statutory test of the same work or work of a similar nature is met. It also separately addresses recruitment and conditions of employment.

No wage reduction to create equality

An employer cannot comply with the equality requirement by reducing the wage rate of an employee. Compliance must therefore be achieved without using Section 3 as a basis for lowering an existing employee's wage rate.

Recruitment and conditions of employment

Section 3(2)(ii) extends the protection to recruitment for the same or similar work and to conditions of employment. The statutory exception applies where employment of women in the work concerned is prohibited or restricted under another law in force.

Section 4: Decision on disputes about same or similar nature of work

Where a dispute arises as to whether work is of the same or similar nature for the purposes of Section 3, Section 4 requires the dispute to be decided by the authority notified by the appropriate Government.

Section 4 is important because the equality obligation under Section 3 can depend on whether the jobs being compared satisfy the statutory concept of the same work or work of a similar nature. The competent authority is determined through notification by the appropriate Government.

Relevant definitions under the Code

Same work or work of a similar nature

Section 2(v) defines this expression by reference to work in respect of which the skill, effort, experience and responsibility required are the same when performed under similar working conditions by employees of any gender, and where any differences are not of practical importance in relation to the terms and conditions of employment.

Employee

Section 2(k) broadly defines an "employee" as a person, other than an apprentice engaged under the Apprentices Act, 1961, employed on wages by an establishment to do skilled, semi-skilled or unskilled manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward, subject to the statutory text and exclusions.

Wages

Section 2(y) contains the statutory definition of "wages". It generally covers remuneration expressed in money or capable of being so expressed which would be payable if the terms of employment were fulfilled, and expressly includes basic pay, dearness allowance and retaining allowance, while prescribing exclusions and statutory computation rules. The definition should be read in full when determining the wage components relevant to a particular case.

Note: Whether particular work is the same or similar, which Government is the "appropriate Government", and which authority has jurisdiction are fact- and notification-specific questions. The applicable Central or State notification and rules should therefore be checked for the establishment concerned.

Official resources

For the current statutory text and implementation material, refer to the Ministry of Labour & Employment resources linked in the right-side panel. Official notifications should be checked for later amendments, commencement provisions and the authority applicable to a particular establishment.

Related provisions of the Code on Wages, 2019

Continue with Section 2 - Definitions, or read Sections 5 and 6 - payment and fixation of minimum wages. The main index is available at The Code on Wages, 2019.