A rotary encoder includes a rotor and a stator. The rotor and the stator are arranged in the rotary encoder such that, when the rotary encoder is arranged on a machine that includes a shaft having a rotation axis, a rotation of the rotor in relation to the stator about the rotation axis of the shaft is allowed, a relative movement between the rotor and the stator along the rotation axis of the shaft is restricted to a predetermined distance, and a movement of the rotor in relation to the shaft along the rotation axis of the shaft is allowed. Additionally, movement of the stator in relation to the machine along the rotation axis of the shaft may be allowed.