Companies with more than 100 employees in Brazil must post their pay transparency reports by Sept. 30. This will be the second round of reports since a new pay equity law and its regulations went into effect earlier this year. Regulations to implement Brazil’s law requiring the pay transparency reports and action plans have been heavily criticized in the business community.
Background
In July 2023, the National Congress of Brazil passed a law with new and more stringent rules relating to equal pay, with a particular focus on mitigating the gender pay gap. The law requires a number of measures be implemented to make compensation criteria more transparent, increase oversight by the labor authorities, promote inclusion and diversity (I&D), and create training and education for women on entering, remaining, and advancing in their careers on equal terms with men.
The regulations issued by the Ministry of Labour and Employment (Ministry of Labour) in November 2023 then focused on two aspects of the law: the mandatory pay transparency reports for companies with more than 100 employees, which must be publicized twice a year, and the “Action Plan” that companies showing a gender pay gap must implement.
Companies with more than 100 employees became particularly frustrated with the ordinance because the ministry decided that the pay transparency reports would be prepared by the ministry, not the companies, with data it had collected through mandatory reports made by such...
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