Deadline for Publication of the Salary Transparency Report

The deadline for publishing the Salary Transparency and Compensation Criteria Report for companies with more than 100 (one hundred) employees is September 30th. These reports must be published on websites, social media, or similar platforms, always in a visible location, ensuring broad dissemination to employees, workers, and the general public. We also remind you that:

• • – Failure to publish the semi-annual report will result in the application of an administrative fine, the value of which will correspond to up to 3% (three percent) of the employer’s payroll, limited to 100 (one hundred) minimum wages (R$132,000.00);

• • – The finding of wage inequality will also give rise to the application of an administrative fine provided for in article 510 of the CLT, which will correspond to 10 (ten) times the value of the new salary due by the discriminated employee, doubled in the case of recurrence;

• •  Without prejudice to administrative fines and the payment of any outstanding wage differences, the victim will also have the right to file a lawsuit for compensation for moral damages against the employer due to discrimination based on sex, race, ethnicity, origin, or age;

Once the Ministry of Labor and Employment (MTE) verifies wage inequality and unequal pay between women and men, employers will be notified to prepare, within 90 (ninety) days, an Action Plan to Mitigate Wage Inequality and Disparities in Pay between Women and Men. This plan must contain priority measures, targets, deadlines, mechanisms for measuring results, and an annual plan with semi-annual evaluation.

It is important to note that some companies have chosen not to disclose this information, either through legal action or based on a possible interpretation that exempts them from such compliance, given a decision granted in provisional injunction before the Federal Regional Court of the 6th Region (Minas Gerais), which has erga omnes effect (for all), notwithstanding its precarious and provisional nature.

However, the safest recommendation is that the report be published, provided that, if the company disagrees with the data contained therein, a clarification note may be included with the report stating that the methodology adopted by the Ministry of Labor does not take into account the individual characteristics of each worker and, therefore, the data presented in the report should not be interpreted as an absolute representation of reality. The report can be accessed via this link.