After a last minute intervention from the Liberal Democrats, large firms will be forced to reveal pay gaps between male and female employees.
Any company with more than 250 staff members could face fines of up to £5,000 for non-compliance with the new rules which are being pushed through Parliament this week.
Currently large firms employ over 10 million people in the UK. So far, only five have voluntarily published figures on their gendered pay gaps.
A government spokesman said the gender pay gap was 'at its lowest ever', adding that the current rules had led to 'over 275 companies, covering over 2.5 million employees, committing to analyse and take action on gender equality in the workforce'.
In November 2014, the Office for National Statistics (ONS) published a report which stated that the gender pay gap was at an all-time low, with men averaging a salary of around £100 a week more than women.
Nick Clegg has said that "These measures will shine a light on a company's policy so that women can rightly challenge their employer where they are not being properly valued and rewarded".
The bill is likely to come into force within the next 12 months.