A photoelectric encoder includes an absolute scale provided with an absolute pattern based on pseudo-random data, and a detection head including a light source that emits light to the absolute pattern of the absolute scale, and a light receiving unit that receives light from the absolute pattern, and it detects an absolute position of the detection head with respect to the absolute scale. In the photoelectric encoder, the absolute pattern is composed of a grating part and a dark part arranged in a repetitive manner. The photoelectric encoder further includes an interference pattern generation means that generates an interference pattern in combination with the grating part, and an interference pattern signal processing unit that detects the pseudo-random data of the absolute pattern based on the interference pattern received by the light receiving unit.