At a glance
- Employers are required to report race and ethnicity data under the Racial Equality Statute and the 2023 amendments introduced new data collection procedures. Since April 2024, the e-Social platform requires specific race categories, and data protection laws must be observed.
- Companies with 100 or more employees must also submit information regarding employee positions and salaries to the Federal government platform, ‘Emprega Brasil Portal,’ by 30 August 2024.
Race and ethnicity reporting
Under the Racial Equality Statute, employers are obliged to provide race and ethnicity data.
Although the Racial Equality Statute 2010 (Law) was amended on 24 March 2023, setting out new procedures and criteria to collect information on race and ethnicity, employers have been facing doubts in relation to what type of information is mandatory or not.
The Law mandates that public and private employers report race and ethnicity data, aiding in the implementation of subsidised public policies nationwide.
Every five days, the Brazilian Institute of Geography and Statistics will use the information in a census, aiming to identify the participation of each ethnic-racial group in the public sector. The information collected will also be considered in the National Policy to Promote Racial Equality, which aims to reduce racial inequalities in Brazil, particularly in relation to black people.
Under the law, employers in the public and private sector must include in employment registers / documents a section where employees are required to state their ethnicity or race. Therefore, the employee must state their race when they are employed or terminated.
The employer must also state the employee’s race / ethnicity when:
- they experience an occupational health issue or accident at work;
- informing dependents before the Social Security Offices; or
- when submitting data via the RAIS (a document detailing the number of employees and their photographs).
Since April 2024 the law has become more effective as the e-Social platform (digital bookkeeping system for tax, social security and labour obligations) removed the option to select 'not informed', and the only valid fields / options to be completed are: ‘white’ or ‘black’ or ‘Asiatic’ or ‘indigenous’ or ‘brown’. The employee must self-declare the category that they select.
Note that Data Protection local law must be observed as this is considered sensitive information.
Salary transparency reporting
The second phase for employers to submit information is currently in play.
Companies with 100 or more employees must submit information regarding employee positions and salaries to the Federal government platform, ‘Emprega Brasil Portal,’ by 30 August 2024. This is mandatory to comply with equal pay legislation.
Once the information is received, the Ministry of Labour and Employment will prepare a report to be sent to all companies by 16 September. Once the report is received, companies must publish the salary transparency report in accessible places, such as websites, social media, or other similar means, by 30 September.
Failure to comply with this obligation, without prejudice to other sanctions, will result in the imposition of an administrative fine of up to 3% of the employer's payroll, limited to 100 minimum wages.
For more information, please contact our local team.
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