Co-funded by the European Union

Brazil: Law n. 14,611/2023 on equal pay enacted

  • On 4 July 2023, Brazil enacted Law n. 14,611/2023 on equal pay for equal work between women and men.
  • It is part of a package of gender equality measures announced by the government in March 2023 to tackle discrimination and inequalities in the workplace.

 

The new law aims to strengthen the existing regulations on equal pay while introducing new provisions. It stipulates that equal pay between women and men for work of equal value or exercising the same function is mandatory and introduces new measures to achieve this goal. 

Law 14,611 establishes mechanisms for wage transparency and remuneration criteria, as well as increased monitoring of wage discrimination and specific channels for reporting wage discrimination.

The new law states that “discrimination based on sex, race, ethnicity, origin or age gives rise to the right to wage differentials and compensation for moral damage”. 

Moreover, companies with 100 or more employees must publish biannual reports on wage transparency and remuneration criteria, containing anonymous salary data and information on the representation of different demographic groups in management and leadership positions. In the event of non-compliance, employers could incur high penalties of up to 3% of the company's payroll, capped at 100 minimum wages. 

Furthermore, if an examination of the transparency reports reveals discrimination, the company will need to develop a remediation plan to address and mitigate the inequalities, with the participation of trade unions and employee representatives.

The law also introduces measures to promote and implement diversity and inclusion programmes in the workplace, managerial training on gender equality, and gender-responsive training to support women in the labour market.