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Brazil: Equal Pay FAQ – Ministry of Labor and Employment publishes new clarifications to the Law

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In brief

The Labor Department (MTE) has disclosed in its website some clarifications for Frequently Asked Questions (FAQ) about the New Equal Pay Law.

The publication of the FAQ, which was very anticipated by employers, covers questions ranging from the purpose of the creation of the Law to more specific aspects of the publication of the Salary and Remuneration Transparency Report.

Among other aspects covered, we have the following:

  • Information will be handled by each Federal Tax Registration – full ‘CNPJ’. If a private legal entity with 100 or more employees has more than one CNPJ, it will be necessary to provide information for each of them.
  • For the first report, the MTE will use the wage information from RAIS 2022 and the New Caged 2023 to calculate the percentage differences for contractual wages and average wages. The calculation formulas will be explained in a methodological note, but no mirror of the information sent by companies to eSocial will be generated.
  • There are no groups of workers exempt from being included in the report (such as part-time employees, temporary employees, interns, monthly and hourly workers). All types of employment relationships must show equal pay criteria for women and men.
  • It is possible to correct Brazilian Classification of Occupations (CBO) errors in the eSocial databases and the MTE will disclose the final date for information that includes the data used each semester.
  • There is no possibility of individual data being released, in compliance with the LGPD.

Despite the clarifications provided, as it is not an exhaustive material, there are still points that have not been covered in depth by the MTE and will need to be carefully analyzed by companies.

Recommended actions

As the deadline to submit the information to the MTE is fast approaching (it ends this Thursday 29 February 2024), it is important that companies carefully review the information available, especially those that may impact being able to meet the deadline.

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Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

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Leticia Ribeiro C. de Figueiredo joined the Firm in 1998, as a corporate trainee, and became partner in 2013. Until July 2003, she was primarily involved in M&A and Corporate Law, with experience in national and international M&A projects and corporate restructurings. From July 2003 on, she has been working exclusively in the Labor Law practice group.
She has a wide breadth of experience with strategic litigation cases and relevant consultancy in individual and collective matters (i.e. restructuring, equity pay, PDVs – voluntary resignation program, PLRs – participation in profits or results, alteration of compensation plans and benefits), including national and international projects. Additionally, she works with collective bargaining agreements.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

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Clarissa Lehmen joined the Firm in 2014. She integrates the employment & compensation practice group, with focus on employment advisory, assisting companies in strategic matters. Clarissa has a wide breadth of experience in strategic matters, including defining and implementing strategies for labor matters relating to C-level executives, benefits harmonization, expatriation, outsourcing, due diligence audits related to Mergers & Acquisitions, retention schemes, Stock Options and negotiations with labor unions.

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Priscila Kirchhoff is a Partner from Trench, Rossi e Watanabe Advogados, Sao Paulo office.
Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

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Tricia Oliveira is a partner at Trench Rossi Watanabe in São Paulo. Her practice focuses on employment litigation – judicial and administrative. Ms. Oliveira has a wide breadth of experience in collective lawsuits and public civil actions, litigation related to health and safety and occupational diseases. *Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law

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