An encoder of a terahertz (THz)-based absolute positioning system used for decoding patterns from THz-band measurements. The encoder includes a scale with a multi-layer reflective/transmissive structure having a matrix with rows. Each row of the matrix corresponds to a plurality of patterns, such that each pattern is used to form a measurement. An emitter emits a THz waveform to the scale. A receiver is used to measure amplitudes of the THz waveform reflected from the scale. A memory stores data including predetermined positions of the emitter based on the patterns of the layers from the scale. Wherein one or more processors can determine a position of the emitter from the measurements of the amplitudes received by the receiver, based on the stored data. An output interface can be used to render the position of the emitter.