A position encoder for monitoring relative movement between a first object and a second object includes a grating that is coupled to the first object, and an image sensor assembly that is coupled to the second object. The image sensor includes a first image sensor; a second image sensor that is spaced apart from the first image sensor; an optical element that includes a first optical surface and a second optical surface that is spaced apart from the first optical surface; and an illumination system. The illumination system directs an illumination beam at the optical element to create (i) a first reference beam that is reflected by the first optical surface and directed at the first image sensor, (ii) a second reference beam that is reflected by the second optical surface and directed at the second image sensor, and (iii) a transmitted beam that is transmitted through the optical element and is directed at and impinges on the grating to create a first measurement beam that is diffracted by the grating and directed at the first image sensor, and a second measurement beam that is diffracted by the grating and directed at the second image sensor.