Looking back at history, it is clear that wage inequalities have hindered women in Brazil for decades. Despite the constitutional principle of equality, disparity remains a reality in many companies. Now, Law No. 14,661/23, which addresses equal pay and remuneration criteria between women and men for work of equal value or the same function, promises to change this landscape.
If your company has 100 or more employees, it is time to prioritize transparency and equity. This is a priority for “yesterday”!
What’s New in the Equal Pay Law?
The law is now in full effect and mandatory. It establishes a standard of equal pay for women and men performing the same function and requires concrete actions to address gender pay gaps. This benefits women who have historically faced disadvantages regarding salaries and professional growth opportunities.
Practical Actions for Compliance with Law 14,661/23:
Compliance requires the active participation of HR and strategic areas to implement:
Transparency Mechanisms: Clear criteria for salaries and remuneration.
Audit Readiness: Protocols to meet government inspections.
Whistleblowing Channels: Specific channels to report wage discrimination.
Diversity and Inclusion Programs: Training for managers and employees with measurable results.
Biannual Reports: Objective comparison of salaries and the proportion of women in leadership roles, including data on race, ethnicity, nationality, and age.
Deadlines and the Wage Equality Report
Companies with 100+ employees must fill out the Salary Transparency and Remuneration Criteria Report on the Ministry of Labor’s portal. If the report identifies disparities, companies must regularize the situation through a Mitigation Action Plan, as specified by Ordinance 3,714.
E-Social as a Showcase for Disparities
Due to its declaratory nature, E-Social reveals payroll details to the Government. This allows for direct analysis of discrepancies. Companies must be prepared to provide well-founded justifications for their data.
Penalties for Non-Compliance
The consequences are serious:
Substantial Fines: Potential financial instability for many businesses.
Reputational Damage: Loss of trust from employees, customers, and society.
Legal Risks: Administrative and judicial lawsuits.
Internal Challenges: Difficulty in retaining talent and maintaining engagement, compromising corporate goals.
Proactivity and Adaptation
Proactivity avoids penalties and solidifies the company’s position as a defender of equality. Companies that celebrate diversity benefit everyone and earn market recognition.
