At a glance
- * Update* The law came into force on 3 July 2023.
- On 4 June 2023, Law 14.611/23 was published in the Official Gazette. The law provides for equal pay by setting out remuneration criteria that ensures those working in the same function are paid equally.
Although the Brazilian Federal Constitution and the Consolidation of Labour Laws (CLT) already provide some protection for women in terms of equal pay, the new law brings changes in relation to the adoption of specific measures aimed at monitoring compliance with equal pay between genders that perform the same job function. Where there is a failure to comply, more severe sanctions have been introduced.
Key provisions
Salary Transparency Reports
All companies with >100 employees must publish a “Salary Transparency Report” every six months. The report must cover the criteria set out in The General Data Protection Law – LGPD (Law 13.709/18) and provide, in anonymised form, information necessary to enable a comparison and impartial evaluation of the remuneration criteria and of the proportion of men and women in leadership positions. The data provided must be accompanied by statistical data on other possible inequalities arising in relation to race, ethnicity, nationality and age.
Employee compensation for discrimination
In cases where there is a difference in remuneration due to discrimination on grounds of gender, race, ethnicity, origin or age, the employer will face a fine corresponding to ten times the amount of the new salary owed by the employer to the employee who has been discriminated against. The fine will be doubled if the discrimination recurs, without prejudice to other legal measures. Prior to the publication of the new law, this fine was equal to one times the monthly regional minimum wage, increased to double in case of recurrence. The payment of the fine and / or wage differences due to the employee who suffered discrimination does not exclude the employee’s right to claim compensation for moral damages.
Administrative fine for non-compliance
In the event the employer does not adopt equal pay practices, an administrative fine of up to 3% of the employer's payroll will, limited to 100 times the monthly minimum wage, be applicable without prejudice to other sanctions.
Creation of an action plan
Where there is a failure to comply with the provisions of the law, the private legal entity in question must create an action plan, which includes goals and deadlines, to mitigate this inequality and which is created in conjunction with representatives from the union and employees from the workplace.
Other measures
The law also provides for:
- The establishment of salary transparency mechanisms;
- An increase in inspections;
- The creation of specific channels for reporting cases of wage discrimination;
- The promotion of workplace inclusion programmes;
- The promotion of training and education of women to enter, remain and progress in the labour market, on equal terms with men.
