A new ordinance provides clarity on salary transparency reporting obligations
At a glance
- A new ordinance (Ordinance 3,714/2023) came into force on 1 December 2023 (Ordinance).
- The Ordinance sets out how the Ministry of Labour and Employment (MTE) will collect employer salary transparency data, and where and when it will be published.
Under laws which took effect in July 2023, all companies with more than 100 employees must publish a salary transparency report every six months. For further details, please see our earlier article.
On 1 December 2023, an Ordinance came into force, setting out much-awaited detail for employers on the requirements of the new salary transparency reporting obligations. The Ordinance was issued by MTE. It provides that, for the purposes of creating the report, MTE will collect the data which employers insert into the eSocial system, as well as additional information.
Employers will also be required to submit prescribed information into the Emprega Brasil Portal section of the MTE website. The first deadline for submission of this data is 29 February 2024.
MTE will then publish employers’ salary transparency reports in the months of March and September, on its Labour Statistics Platform.
It is important to note that all information provided in relation to salary transparency reporting obligations must be anonymised and in accordance with local data protection laws.
