Brazil's New Pay Equality Law: The Practicalities

The gender pay gap has recently been addressed in Brazil by legislation and two subsequent administrative directives. We take a look at how those initiatives might work in practice.

In July 2023, Brazil passed a landmark Federal Gender Pay Gap Law which requires large employers to bi-annually report on differences in pay between men and women in management and leadership positions. The law also addresses pay and career discrimination against minorities. Then in November 2023, the government issued a Federal Decree and an Ordinance that provided more detail on the Law's reporting obligations and the administrative mechanisms for the Ministry of Labour to enforce those obligations. As much as these steps were needed, the legislation and directives leave some significant legal issues unresolved.