The absolute encoder is an encoder that can specify a value without reference because a value is assigned to each shaft position. This value is mostly issued by using a serial transmission in the form of a digital numerical value but other bus systems can also be used. The main difference to the incremental encoder is the digital specification that can function without a required reference. An absolute encoder is used in displacement and position technology. For example, it is placed in machine tools.

An absolute encoder can be distinguished further into a singleturn and a multiturn encoder. Singleturn means that the signals are repeated after one rotation of the motor shaft. With a multiturn encoder, the number of rotations is recorded. Therefore, it is not necessary to reference even after more than one rotation.