New pay equality rules in Brazil

On 3 July 2023 Brazil passed a new Gender Pay Gap Law, which, for the first time, will oblige companies with more than 100 employees to report salary differences between men and women in management and leadership positions. The Brazilian government has now issued a Federal Decree and an Ordinance providing important details for the implementation of the new law. These regulatory acts, promulgated at the end of November, were eagerly awaited by companies and brought with them some surprises. These included the obligation for companies to publish their Salary Transparency and Remuneration Criteria Reports on their websites and/or on social networks, and the creation of a specific reporting channel within the Ministry of Labour and Social Security.

Reports will be divided into two sections. The first section will include the data already available in the E-social system, Brazil’s online public administration system, and the second section will include information provided by the companies themselves. This information must be made available by companies in February and August of each year. Companies should be aware of their obligations to describe the steps they are taking to encourage the hiring of women and to detail any initiatives and programs encouraging the sharing of family/parental obligations.

Where the Ministry of Labour finds there to be salary differences between men and women, companies must develop an action plan to mitigate and address the matter within 90 days. The action plan must include the implementation of programs related to the education of senior managers and employees about gender equity, the promotion of diversity and inclusion, and encouraging women to join, stay in and thrive in the labour market. Employees, represented by a union and/or by a specific group elected for this purpose, will participate in the development of these programs.