Brazil Takes Action on Gender Pay Gap

Despite the presence of anti-discrimination guidelines in Brazil’s CLT labor laws and the 1988 Constitution, wage disparity between genders has been a persistent and troubling issue in the workplace. On average, Brazilian women reported earning just 78% of what their male coworkers earned in the previous year. New legislation, however, aims to rectify this imbalance.

As of July 3, 2023, employers in Brazil must offer equal pay to men and women working in the same roles. Companies with over 100 employees must also release bi-annual salary transparency reports. The new legislation could have a significant impact on promoting transparency in hiring practices and reducing gender pay differences.

Additionally, businesses must now present action plans to address any identified wage discrimination based on gender. Companies are also expected to organize diversity and inclusion programs and provide training for female employees.

Law No. 14.611 also imposes penalties for companies that fail to comply. Any business found to be in violation of the law will face heavy fines - ten times the salary of the affected employee. In the case of repeat violations, the fine is doubled. This raises the crucial question of whether Brazil has the resources and capability to enforce the law.

When hiring in Brazil, it’s important to familiarize yourself with Brazil’s strict labor laws. For employees, it’s more than just the salary that’s important. They expect their employer to provide all the benefits granted to them by law. And now, you can add equal pay for equal work to that list.