There is provided an optical encoder including an encoding medium and a substrate. The encoding medium has a relative movement with respect to the substrate in a predetermined direction. The substrate includes an index photodiode and two control photodiodes. The index photodiode is arranged between the two control photodiodes along the predetermined direction. The output signals of the two control photodiodes are for controlling ON/OFF of gain regulation on an output signal of the index photodiode so as to turn on the gain regulation within an interval during which the index photodiode does not generate an index pulse but to turn off the gain regulation within an interval during which the index photodiode generates the index pulse.