Salary Transparency Report: 7 Q&A to better understand this new requirement

 

Report consists of data retrieved from the eSocial system, and must be complemented with details regarding remuneration policies

 

Companies with 100 employees or more are required to submit their first Salary Transparency and Remuneration Criteria Report by March 8 (Law nº 14.611/2023).

Below, we address several key aspects of this new requirement, which has been a source of concern for employers.

 

1. What is the Salary Transparency Report?

 

This report is designed to enable an objective comparison of salaries, wages, and job position distributions within companies. Its aim is to identify any pay disparities between men and women in identical roles.

 

2. How should the report be filled out?

 

Employers are required to use the Emprega Brasil Portal to enter the corresponding information.

 

3. What is the deadline?

 

Data entry begins on January 22. For this first report, the deadline is set for March 8.

Submissions must be made semi-annually, by the end of February and August.

The reports must be publicly disclosed in March and September of each year, via the company's website and social media. This is to ensure widespread distribution to employees, partners and the general public.

The Ministry of Labor and Employment (MTE) is expected to disclose the first report on March 15.

 

4. Which companies are required to complete the report?

 

All private legal entities with 100 or more employees per CNPJ – Corporate taxpayer ID (including both parent companies and branches) are required to fulfill this requirement.

For instance:

• A CNPJ with fewer than 100 employees, whether a parent company or a branch, is not required to submit the report.
• If the head office has 10 employees and a branch has 100, only the branch is required to complete the report.

 

Negative report Companies that had fewer than 100 employees as of December 31, 2023, must complete a specific field to indicate their exemption from submitting the Equal Pay and Remuneration Criteria Report for the first half of 2024.

 

5. What information should employers supply?

 

Much of the data needed for the report, such as registration details, salaries, job functions, ethnicity and gender of workers, will have already been reported through eSocial submissions. 

Hence, employers are required to use the Emprega Brasil Portal to supply additional information concerning the implementation of career paths, efforts to promote female hiring, and career development criteria. 

 

Salary Transparency Report
Information already supplied via eSocial by companies under each CNPJ	Additional details to be furnished by companies via the Emprega Brasil Portal
Total number of employees sorted by gender and race/ethnicity;   Comparison of initial salaries paid to women and men occupying the same roles, based on the Major Groups within the Brazilian Classification of Occupations; Ratio of the average remuneration between men and women over the past 12 months, based on the actual compensation paid;   Percentage of women and men employed within the company.	Does the company offer a career path program? What salary and remuneration criteria are adopted by the company? Does the company have policies in place to encourage the hiring of women?  What are the criteria in place for promoting employees to management positions?  Are there company policies aimed at encouraging the sharing of family and household responsibilities?

The Ministry of Labor and Employment (MTE) will compile the data into a report, which will then be disclosed for public access.

 

6. What are the implications if irregularities are found?

 

Should any discrepancies be found, the employer will receive a notification via the Electronic Labor Domicile (DET). They will then have a 90-day period to address the issue, following the guidelines set out in the Action Plan for Mitigating Wage Inequality and Establishing Fair Remuneration Criteria between Women and Men, as outlined in MTE Ordinance No. 3,714/2023.

Failure to comply may result in an administrative fine of up to 3% of the company's payroll, capped at 100 minimum wages.

 

7. Are personal data protected?

 

Yes. The reports will anonymize all personal data to comply with the General Data Protection Act (LGPD), ensuring individual privacy is maintained.

• Further reading: Equal Pay Act: find out how companies are impacted by the regulation

 

Labor compliance services

 

Our team of labor experts at DPC is committed to staying abreast of legislative changes and the latest amendments to regulations.

This dedication is evident in the daily support we offer our clients, ensuring they have the guidance and peace of mind to carry out their activities in full compliance. Reach out to our team at: dpc@dpc.com.br.