Brazil Pay Gap Reporting: What You Need to Know

To find the full text of the global pay reporting law in Brazil, refer to the Equal Pay Law (14.611/2023). In September 2024, Brazil’s Ministry of Labor and Employment (MTE) published Instruction No. 6, which provides further guidance.

The Brazilian Ministry of Labor will create a report for your organization based upon legal entity.

No, not every company in Brazil has to report the gender pay gap. The requirement applies specifically to companies with 100 or more employees.

Any individuals with a formal employment relationship are included in Brazil’s pay gap reporting law. This includes anyone with a signed employment contract, receiving a salary and benefits, and subject to labor laws. Some employees are not included.

No. There is a lag between the data submitted and the report. For example, in March 2024, the pay gaps were calculated based on information shared by the employer in 2022.

The Salary Transparency and Remuneration Criteria Report can be accessed at this site: https://www.gov.br/trabalho-e-emprego/pt-br/assuntos/estatisticas-trabalho/relatorio-empresarial/relatorio-empresarial.

Yes, employers can provide supplemental narrative or explanation to their Salary Transparency and Remuneration Criteria Report.

We find that sharing a supplemental narrative is helpful for many employers. Global pay reporting is more than a compliance exercise; it’s an opportunity to tell your story. This includes putting any pay gap into context by explaining underlying reasons for the results and providing details about intended actions to reduce or eliminate the gap. It is important to effectively diagnose your pay gap and create an action plan before explaining it in detail through a supporting narrative. This will ensure you draw the right conclusions from your pay gap data and increase your ability to make progress.

Along with our PayEQ, Syndio’s expert team can help you understand your gaps so you can share the right information and communicate with confidence.

In Brazil, non-compliance with the law’s requirements for salary transparency and remuneration reporting will result in a fine of up to 3% of the employer’s payroll, limited to 100 “minimum wages”.

Syndio provides software and expert professional services to help multinational organisations comply with pay equity, pay reporting, and pay transparency regulations. Syndio helps you analyze, remediate, explain, and report on gaps so you can stay on top of compliance in Brazil. Learn more: https://synd.io/global-pay-reporting/.

The law in Brazil analyzes pay gaps, not pay equity. What’s the difference?

An unadjusted pay gap (also called an “uncontrolled pay gap”) is the difference between the median or mean pay of two groups, such as men and women.

• Median pay gap: Imagine lining up all the earnings for two groups of employees (e.g., men and women) from lowest to highest. The median pay gap is the difference between the middle earnings in each line. It’s a good indicator of typical pay differences.
• Mean pay gap: This compares the average earnings of each group. However, it can be skewed by extremely high or low earners.

Pay equity, or the adjusted pay gap, accounts for factors that can legitimately explain differences in pay, such as performance ratings, tenure with the company, or location.

The median and mean pay gaps provide valuable insights, but they don’t tell the whole story. There may be legitimate reasons for pay differences between employees. The adjusted pay gap (pay equity) accounts for these factors, revealing whether a pay disparity truly exists (which is unlawful in many countries) so you can take corrective action. Syndio’s PayEQ software is the trusted solution for global enterprises to rapidly identify, address, and prevent pay disparities.