Brazil's 2023 Equal Pay Law guarantees equal pay for work of equal value — defined by equal productivity and technical perfection — and requires employers with 100 or more staff to publish semi-annual pay-transparency reports and adopt action plans where inequality is found. Fines reach up to 3% of payroll.
Brazil's Lei nº 14.611/2023 — the Equal Pay Law — turned a long-standing CLT principle into an enforced transparency regime. Article 461 of the CLT has guaranteed equal pay for work of equal value (trabalho de igual valor) for decades, defining it by equal productivity and the same technical perfection between employees of the same employer, with comparison limited by tenure differences. The 2023 law kept that definition and added machinery around it: mandatory transparency, public reporting, and remediation duties.
The operative obligations: employers with 100 or more employees must publish semi-annual salary transparency reports detailing pay and remuneration criteria by gender across comparable roles — and where the reports reveal inequality, the employer must adopt an action plan to mitigate it, with union and employee representative participation, including goals and timelines.
Brazil sits in the implied tier because its equal-value test is productivity-based rather than factor-based — no statute names skill, effort, responsibility, and working conditions as the comparison criteria. But the reporting regime forces the analytical question anyway: a report comparing pay "in equivalent roles" is only as defensible as the analysis that decided which roles are equivalent.
The decisive development came on 14 May 2026, when Brazil's Supreme Federal Court (STF) unanimously upheld the constitutionality of Lei 14.611/2023, rejecting industry challenges grounded in free enterprise and data protection. The injunctions that had delayed parts of the reporting obligation were lifted with immediate effect.
Enforcement was already moving before the ruling and has accelerated since: the Ministry of Labour and Employment (MTE) published companies' salary transparency reports in March 2026 and has inspected more than 800 companies for compliance. The sanctions are substantial — administrative fines of up to 3% of payroll, capped at 100 minimum wages, on top of the underlying exposure to equal pay claims and the obligation to negotiate remediation plans with unions watching the published numbers.
Brazil's law doesn't prescribe a method — which means the burden of building a defensible one falls entirely on the employer:
With constitutionality settled and the MTE publishing the numbers, Brazilian pay structures are now public documents twice a year. The employers in control of that story are the ones whose role comparisons were built analytically before publication, not explained afterward.
Not as a named method. Brazil's Equal Pay Law (Lei 14.611/2023) and CLT Article 461 guarantee equal pay for work of equal value, defined by equal productivity and the same technical perfection rather than by compensable factors. But employers with 100+ employees must publish semi-annual pay transparency reports and adopt action plans where inequality appears — which in practice requires a structured analysis of who does comparable work.
Equal pay between women and men for work of equal value, semi-annual salary transparency reports for employers with 100 or more employees, and — where the reports reveal inequality — a remediation action plan drawn up with union and employee participation. Non-compliance carries fines of up to 3% of payroll, capped at 100 minimum wages.
Yes — settled in May 2026. The Supreme Federal Court (STF) unanimously upheld Lei 14.611/2023 on 14 May 2026, rejecting challenges based on free enterprise and data protection. All injunctions that had delayed the reporting obligation were lifted with immediate effect, and the Ministry of Labour is enforcing fully.
Under CLT Article 461, work performed with equal productivity and the same technical perfection, for the same employer in the same establishment, with limits on differences in tenure (no more than two years in the role for comparison purposes). It is a productivity-based test rather than a factor-based one — but the transparency reports require employers to group and compare comparable roles regardless.
PointFactors implements the analytical, factor-based methodology referenced by pay equity laws worldwide.
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Last reviewed: 2026-06-11