While Brazil’s Constitution and Labor Code both have provisions establishing the principle of equal pay for equal work, employers aren’t currently mandated to demonstrate compliance. To address this, Bill 1085/2023 would amend the Labor Code to require companies with 20 or more employees to publish gender-based pay comparison information under certain circumstances, including identical roles, identical activities and no applied promotions (article 461 of Labor Code). Companies would face fines for noncompliance as well as increased penalties in cases of unjustified pay inequality. The bill is currently with the Chamber of Deputies for review. If enacted, its provisions would be effective immediately upon publication, if current wording remains.
The Brazilian statistical agency IBGE (Instituto Brasileiro de Geografia e Estatística) and other institutions have found that women earn 20% to 30% less than men in Brazil, on average, when comparing workers with the same education and age profile in the same or similar role. If the bill is approved, companies would have greater incentive to review their policies and practices on pay to ensure compliance with the equal pay for equal work requirements.