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Good practice Imported

Brazil's Salary Transparency Law: Mandatory Biannual Pay-Gap Reporting

Brazil · Brasília · See the Brazil profile · See the Brasília profile

Evidence: Observational / pre–post Top 42% 74/100 · Ask Evidence Copilot about this practice

Law 14.611/2023 requires Brazilian employers with 100+ staff to publish biannual salary-transparency reports. The March 2024 first cycle covered 49,587 establishments and 17.7 million workers, revealing a 19.4% average gender pay gap (32% for Black women).

49,587 establishments
Establishments covered (March 2024)
17.7 million workers
Workers covered (March 2024)
19.4 %
Average gender pay gap (March 2024)
25.2 %
Gender pay gap, managerial roles (March 2024)
32 %
Gender pay gap, Black women (March 2024)

Details

Maturity
Established
Promoter
Ministério do Trabalho e Emprego (MTE)
Period
2023-present
Keywords
labour law, pay equity, corporate reporting, wage transparency

Context

Brazil's Law No. 14.611/2023 (Lei da Igualdade Salarial), enacted in July 2023, requires private employers with 100 or more employees to submit biannual salary-transparency reports to the Ministry of Labour and Employment (MTE), comparing pay between women and men performing work of equal value.

Objectives

The law aims to make gender pay gaps visible at scale and to trigger corrective action where unjustified gaps are found.

Activities

Reports are published every March and September under a methodology set by Decree 11.795/2023 and Ordinance 3.714/2023. Where the MTE identifies unjustified pay gaps, the employer must submit a corrective action plan — developed jointly with unions and worker representatives — within 90 days of notification.

Results

The first national report, released in March 2024, covered 49,587 establishments and 17.7 million workers. It found an average gender pay gap of 19.4%, rising to 25.2% for women in managerial roles and 32% for Black women — the first economy-wide, government-verified baseline of its kind in Brazil.

Conclusions

Because reporting only began in 2024, there is not yet independent evidence that disclosure itself narrows the measured gap over time; the mechanism's real test is whether the mandated corrective-action-plan process produces measurably closing gaps in later reporting cycles.

Implementation
Indicative cost
Medium (€50k–€500k)
Time to results
Medium (1–3 years)
Staffing & skills
Ministério do Trabalho e Emprego (MTE) administers reporting and reviews submissions, Unions and worker representatives are required co-authors of corrective action plans where gaps are found

Conditions for success

  • A defined reporting methodology (Decree 11.795/2023, Ordinance 3.714/2023) applied uniformly across employers
  • A mandatory, time-bound (90-day) corrective-action-plan requirement when unjustified gaps are identified
  • Coverage threshold (100+ employees) that captures a large share of formal employment

Commonly funded by

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Data sources

Where this practice's information was retrieved from, and when.

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