An electromagnetic induction type rotary encoder includes an excitation board including an excitation coil, a detection board fixed to a movable element to face the excitation board and including a detection coil placed to face the excitation coil with a clearance therefrom, and a controller for outputting an excitation signal to the excitation coil and processing a detection signal output from the detection coil. The controller includes an excitation circuit for exciting the excitation coil at high frequency and a high-frequency generating circuit, a demodulation circuit for demodulating a signal from the detection coil in accordance with excitation to the excitation coil, a waveform shaping circuit for waveform shaping a signal from the demodulation circuit, and a pulse generating circuit for outputting a pulse signal based on the signal from the waveform shaping circuit. Each of the excitation coil and the detection coil is formed in a meandering coil pattern.