New Law in Brazil Guarantees Equal Pay for Women and Men

05-07-2023

Laura Hochheim Thomé 

Women’s Rights Researcher, 

Global Human Rights Defence.

On Monday, July 3, 2023, Law No. 14.611, which guarantees equal pay for men and women, was approved by Brazil's President Luiz Inácio Lula da Silva. Even though equal pay was already recognised by the Federal Constitution (1988), the Consolidation of Labour Laws (1943), and international agreements like the International Labour Organisation (ILO) Convention No. 100 (1951), of which Brazil is a signatory, the new law advances the theme and imposes a number of obligations on companies (Lara, 2023).

The new law amends the fine stipulated in Article 510 of the Consolidation of Labour Laws (CLT), increasing the fine by up to ten times in cases where the woman receives less than the man doing the same job and elevating it to twice in cases of reincidence. The law also provides indemnity for moral damage in situations of discrimination on the basis of gender, race, ethnicity, origin, or age (Agencia Senado, 2023).

In addition to imposing fines for non-compliance, the law demands the implementation of wage transparency mechanisms, increased surveillance, and the creation of specific channels for reporting cases of wage discrimination. For instance, companies with 100 or more employees are required to provide semi-annual reports on salaries and remuneration in order to allow a clear comparison of salaries between men and women. Additionally, the law establishes that it is the obligation of the company to implement and promote programmes of diversity and inclusion in the work environment, as well as the responsibility to support women's training and empowerment so they can enter, continue, and evolve in the labour market on equal terms with men (Governo do Brasil, Ministério do Desenvolvimento e Assistência Social, Família e Combate à Fome, 2023). 

The progress towards gender equality reflected in the new law reinforces Brazil’s commitment to the Sustainable Development Goals (SDGs) of the 2030 UN Agenda. Particularly towards Goal 5 "achieve gender equality and empower all women and girls" and Goal 8 "promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all" (Lara, 2023). The Minister of Women, Cida Gonçalves, celebrates this achievement by stating that: 

"In the second decade of the 21st century, women still earn an average of 22% less than men. And black women get less than half the white men’s salary” (Governo do Brasil, Ministério do Desenvolvimento e Assistência Social, Família e Combate à Fome, 2023). 

​​Cida emphasises the importance of equal pay for economic growth and the improvement of the country’s GDP. The new law, she concludes, "brings hope for our girls, future workers, to have a career free from discrimination "(Governo do Brasil, Ministério do Desenvolvimento e Assistência Social, Família e Combate à Fome, 2023). 

Sources and further readings:

Agência Senado (July 04, 2023). Sancionada lei de igualdade salarial entre mulheres e homens. Retrieved on July 05, 2023 from ​​https://www12.senado.leg.br/noticias/materias/2023/07/04/sancionada-lei-de-igualdade-salarial-entre-mulheres-e-homens 

Basilio AL. (July 03, 2023). Lula sanciona lei que iguala salários de homens e mulheres nas mesmas funções. Retrieved on July 05, 2023 from https://www.cartacapital.com.br/politica/lula-sanciona-lei-que-iguala-salarios-de-homens-e-mulheres-nas-mesmas-funcoes/ 

Governo do Brasil, Ministério do Desenvolvimento e Assistência Social, Família e Combate à Fome (July 03, 2023). Presidente Lula sanciona lei que garante igualdade salarial entre mulheres e homens. Retrieved on July 05, 2023 from https://www.gov.br/mds/pt-br/noticias-e-conteudos/desenvolvimento-social/noticias-desenvolvimento-social/presidente-lula-sanciona-lei-que-garante-igualdade-salarial-entre-mulheres-e-homens 

Lara L. (July 04, 2023). Entenda o que muda com a nova lei da igualdade salarial entre mulheres e homens. Retrieved on July 05, 2023 from https://g1.globo.com/trabalho-e-carreira/noticia/2023/07/04/entenda-o-que-muda-com-a-nova-lei-da-igualdade-salarial-entre-mulheres-e-homens.ghtml