A magnetic encoder apparatus comprising a magnetic scale reader unit (6, 76) and a magnetic scale (4, 40, 62, 80), the magnetic scale reader unit (6,76) comprising a magnet and a plurality of magnetic field strength sensors (30, 82), the magnetic scale comprising; a scale member comprising a plurality of grooves (16, 18, 42, 44), the scale member defining a passive magnetic scale track that can be read by the magnetic scale reader unit (6,76), the plurality of grooves comprising grooves of at least a first groove type (16, 42) and a second groove type (18, 44), the magnetic properties of the scale member in the locality of grooves of the first groove type (16,42) being different than the magnetic properties of the scale member in the locality of grooves of the second groove type (18,44), the scale member carrying absolute position information in the form of at least one codeword comprising a sequence of N data bits, each of the data bits being provided by a groove of the scale member, the data bit taking a first value if the groove is of the first groove type (16, 42) and a second value if the groove is of the second groove type (18,44), the midpoints of the plurality of grooves (16, 18, 42, 44) being substantially equidistantly spaced apart along the length of the scale member thereby providing a repetitive pattern of grooves, wherein the magnetic scale reader unit (6,76) extracts incremental (sin/cos) signals from the repetitive pattern of grooves (16, 18, 42, 44), the number of magnetic field strength sensors (30,82) provided in the magnetic scale reader unit (6,76) is at least equal to the number N of data bits of the at least one codeword such that at least N data bits can be read simultaneously, and at least four magnetic field strength sensors (30, 82) are provided. a scale member comprising a plurality of grooves (16, 18, 42, 44), the scale member defining a passive magnetic scale track that can be read by the magnetic scale reader unit (6,76), the plurality of grooves comprising grooves of at least a first groove type (16, 42) and a second groove type (18, 44), the magnetic properties of the scale member in the locality of grooves of the first groove type (16,42) being different than the magnetic properties of the scale member in the locality of grooves of the second groove type (18,44), the scale member carrying absolute position information in the form of at least one codeword comprising a sequence of N data bits, each of the data bits being provided by a groove of the scale member, the data bit taking a first value if the groove is of the first groove type (16, 42) and a second value if the groove is of the second groove type (18,44), the midpoints of the plurality of grooves (16, 18, 42, 44) being substantially equidistantly spaced apart along the length of the scale member thereby providing a repetitive pattern of grooves, wherein the magnetic scale reader unit (6,76) extracts incremental (sin/cos) signals from the repetitive pattern of grooves (16, 18, 42, 44), the number of magnetic field strength sensors (30,82) provided in the magnetic scale reader unit (6,76) is at least equal to the number N of data bits of the at least one codeword such that at least N data bits can be read simultaneously, and at least four magnetic field strength sensors (30, 82) are provided.