New law on equal payment for women and men

In brief
On July 3rd, 2023, the Brazilian President sanctioned Law n. 14,611/2023, aiming to ensure equal payment for women and men who perform the same activities. The new regulation also creates greater sanctions for employers.

In more detail
Among other new provisions, the new law amends article 461 of the Labor Code to expressly provide for mandatory equal payment and remuneration criteria for women and men who perform the same work or work of equal value.

In case of discrimination on the basis of gender, race, ethnicity, origin or age, in addition to salary differences the employer will be subject to a fine of 10 times the new monthly salary owed by the employer (doubled if case of recurrence), plus a possible indemnification for moral damages. This fine represents a substantial increase over the previous one provided for in the Labor Code, which was limited to 50% of the maximum social security annual pension.

Companies with 100 or more employees are required to publish biannual pay transparency and remuneration criteria reports, including data on the proportion of women and men in management roles.
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