Listed companies with more than 250 employees will have to report how their chief executive's pay compares to the median worker's salary under a Labor government.
Under the policy to be announced by shadow assistant treasurer Andrew Leigh on Tuesday, firms would be required to report pay ratios and encouraged to provide a public explanation of their remuneration strategy.
"This policy addresses public concern that CEO salaries are growing at an unfair rate and leaving workers behind," Dr Leigh said.
"By extending current market reporting requirements for public companies, it will help inform investors as they calculate risks and decide where to invest their money."
CEOs at the nation's 100 biggest ASX-listed companies took home an average $6.2 million of "realised pay" in 2017, according to Australian Council of Superannuation Investors figures released in July.
Domino's Pizza CEO Don Meij topped the list of the highest-paid CEOs, with a realised pay of $36.84 million
The survey found pay packets at Australia's 100 biggest companies returned to pre-global financial crisis levels in 2017.
Dr Leigh said the CEO pay ratio reporting would mirror measures introduced in the United States and Britain.
In July, then prime minister Malcolm Turnbull said shareholders increasingly objected to high CEO pay.
He said more investors had used their ability to reject remuneration packages, backing their rights as activists.
If Labor wins the next election, it plans to put the reporting regime in place from the 2021 financial year to allow companies to comply with the new requirements.
