Brazil: New equal pay law n. 14.611 of 3 June 2023

published on 23 February 2024 | reading time approx. 1 minute

A new pay equality law, Law 14.611/23, has come into effect aimed at ensuring equity and justice in the workplace by promoting fair and equal wages for all employees, regardless of their gender.

Under the new legislation, new criteria have been established to ensure pay equity, including: the establishment of salary transparency mechanisms, increased inspections on the topic, and specific channels for complaints.

Consequently, companies will be rigorously monitored, and those failing to comply with pay equity rules will face penalties ranging from the requirement to implement an action plan to mitigate inequality, to paying salary differences with a fine of 10 times the amount owed to the discriminated employee, doubled in case of recurrence.

The initial mechanism for regulating the topic was the establishment of salary transparency reports, which are available on the government's website and must be submitted semi-annually by companies with 100 or more employees, with the first report due by 29 February 2024.

Here are some clarifications on the subject:

What is the scope of the law?
All companies are covered by the law and must comply with pay equity criteria. However, only companies with 100 or more employees (including subsidiaries) are required to submit a pay equality declaration. Failure to submit the declaration results in an administrative fine of up to 3 percent of the employer's payroll, capped at 100 minimum wages.
How to submit the Pay Equality Declaration?
Employers must access the platform: https://servicos.mte.gov.br/empregador/#/ with their digital certificate, fill in the information on the Emprega Brasil Portal under the Employer section, and click on "Pay Equality Declaration." The declaration consists of five questions regarding the company's current practices.

Companies with fewer than 100 employees may submit a negative declaration within the Emprega Brasil Portal, but it is not mandatory.
What is the frequency of submitting the Declaration?
The pay equality declaration must be provided by the government and filled out by companies every 6 months.
What if my company does not have policies ensuring pay equality?
Rödl & Partner has a specialized consulting team in labor law, with expertise in developing internal policies that can assist you in creating and implementing policies ensuring pay equity within the company, as well as ensuring compliance with the new law.