Government Decree Establishes Framework for Gender Pay Equality Legislation

In brief

Decree 11,795/2023, published today (November 24, 2023), enforces the provisions of Law 14,611/2023 regarding equal pay and remuneration standards for women and men.

Key provisions include (i) the mandatory Wage and Remuneration Criteria Transparency Report for companies with over 100 employees, and (ii) the implementation of an Action Plan to address gender-based pay disparities.

The Ministry of Labor and Employment will regulate the report’s format and publication procedure, with a stipulation for companies to publish reports in March and September each year. Reports must detail position, contractual salary, incentive pay, and other relevant information based on the Brazilian Classification of Occupations (“CBO”).

A notable innovation is the requirement for companies to publish these reports on official websites, social networks, or similar platforms, ensuring accessibility for employees and the general public.

The Decree also outlines the Action Plan’s implementation in case pay disparities and remuneration issues are identified. It includes measures, targets, deadlines, training programs on equity, diversity and inclusion, and education initiatives for women’s equal participation in the workforce. Trade unions and employees’ representatives are also required to be involved, preferably as determined by collective bargaining agreements. The Action Plan must guarantee the participation of representatives of trade unions and employees, preferably as established in the collective bargaining agreement.

Recommended actions

Given the obligation to disclose certain minimum information through the Transparency Report, companies with a headcount above 100 are advised to proactively analyze potential pay disparities. This preemptive analysis will facilitate corrective actions, reducing future labor-related risks.