The new Brasilian equal pay law and the changes it can bring to your company

The wage inequality between men and women is a recurrent topic and an international problem. Data that demonstrates this, according to the 2019 National Household Sample Survey (PNAD), women’s income represents, on average, 77.7% of men’s income.

In view of this theme, in Brazilian legislation, more specifically article 461 of the Consolidation of Labor Laws (CLT)[1], modified by Law nº 13.467/2017, that signs:

As the function is identical, all work of equal value, provided to the same employer, in the same business establishment, will correspond to equal salary, without distinction of sex, ethnicity, nationality, or age.

In this sense, the presented article defines wage equality between genders. However, society still observes, in concrete cases and research related to the subject, the violation of such rights. An example of this is the statistical data (from 2022) from the Brazilian Labor Court, which indicate that wage equality or isonomy was the object of 36,889 lawsuits filed across the country.

Due to this, on July 4, 2023, Law 14.611/2023 came into force, which guarantees equal pay and remuneration criteria between women and men who perform the same function.

Image: Canva

In addition to establishing equal wages, the new legislation (i) aims to increase enforcement against discrimination, (ii) encourage the adoption of policies and other mechanisms to combat such discriminatory acts, (iii) promote inclusion, (iv) determines the biannual publication of salary transparency reports by companies, respecting the General Law for the Protection of Personal Data (Law nº 13,709/18), and (v) promoting the creation of reporting channels.

A relevant point of the aforementioned law is the establishment of a fine, in addition to the payment of the salary difference, of 10 times the value of the new salary, and also provides for the possibility for the employee to claim compensation for moral damages.

In addition to the labor liabilities that the company may face if it fails to comply with said law, it is worth mentioning that a fine is also provided “the amount of which will correspond to up to 3% (three percent) of the employer’s payroll” (article 5, § 3) if the company is exempt from publishing semiannual reports on salary transparency and remuneration criteria, without prejudice to the other sanctions applicable to cases of salary discrimination and remuneration criteria mentioned above.

Given the above, companies must be aware of the risks of not following the legal provisions outlined in Law nº 14,611/23, adopting effective and protective measures to avoid labor liabilities, inspection fines, and other problems.


Written by Júlia Soares and Daniel Rangel

References:

  1. MAGALHÃES, Andrea. Lei da Igualdade Salarial: homens e mulheres na mesma função devem receber a mesma remuneração. JUSTIÇA DO TRABALHO, 2023. Disponível em: < https://www.tst.jus.br/-/lei-da-igualdade-salarial-homens-e-mulheres-na-mesma-fun%C3%A7%C3%A3o-devem-receber-a-mesma-remunera%C3%A7%C3%A3o>. Acesso em: 01, ago. 2023.
  2. Ministério do Trabalho e Emprego. Consolidação das Leis do Trabalho, 1 de maio de 1943.
  3. Sancionada lei de igualdade salarial entre mulheres e homens. SENADO NOTÍCIA, 2023. Disponível em: < https://www12.senado.leg.br/noticias/materias/2023/07/04/sancionada-lei-de-igualdade-salarial-entre-mulheres-e-homens#:~:text=A%20Lei%2014.611%2F2023%20prev%C3%AA,de%20trabalho%3B%20o%20fomento%20%C3%A0>. Acesso em: 28, jul. 2023.
  4. Todos lo que debe saber sobre promover la igualdad salarial. ONU MUJERES, ano. Disponível em: < https://www.unwomen.org/es/news/stories/2020/9/explainer-everything-you-need-to-know-about-equal-pay>. Acesso em: 28, jul. 2023.

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