Article
5 min read
Brazil’s Pay Transparency Regulations: Essential Insights for Employers in 2025
Global payroll
Author
Shannon Ongaro
Last Update
June 06, 2025
Published
June 06, 2025
Key takeaways
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Companies in Brazil with 100+ employees must publish biannual salary data by job title and gender, including an action plan and employee representation, to comply with the Ministry of Labor’s equal pay law.
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Failing to submit accurate reports or mishandling salary data under LGPD can result in hefty fines and significant reputational damage.
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Employers can use Deel to ensure their Brazilian payroll and hiring processes are up-to-date with the latest regulatory updates.
HR and payroll teams in Brazil face a critical reporting requirement: any company with 100 or more employees must publish a biannual report detailing salary data by job title and gender, in line with the Ministry of Labor’s push for transparency and equal pay.
This requirement fits into broader labor laws, minimum wage standards, and the Brazilian General Data Protection Law (LGPD). It also supports promoting diversity and inclusion. For HR and payroll teams, these requirements are a legal obligation but also a chance to lead on pay equity.
With Deel’s built-in compliance, local in-house experts, and automations, staying aligned with the latest employment and labor regulations requires less manual work and stress for Brazilian teams. This article breaks down what you need to know about Brazil’s pay transparency laws and how to stay compliant.
Understanding the pay transparency regulation
The updated labor code, enforced by the Ministry of Labor (Ministério do Trabalho) and MTE, says that companies with 100 or more employees must publish average salaries by job title and gender. Reports are due twice a year, in March and September. Each report needs to include:
- Salary breakdowns by role and gender
- An action plan to correct any pay disparities
- Input from employee representatives
- Compliance with LGPD when handling personal data
After each report is filed, companies have 90 days to begin putting the action plan into practice.
The risks of non-compliance
If a company fails to meet these reporting requirements, it can face fines from the MTE and damage its reputation. Ignoring equal pay for equal work or not involving employee representatives can draw scrutiny from regulators, employees, and the public.
On top of that, mishandling personal salary data can violate the LGPD and lead to further penalties. Learn more about hiring and paying employees in Brazil with Deel.
The opportunity for payroll and HR professionals
For payroll and HR teams, following these rules shows a commitment to workplace fairness. By aligning with Brazil’s Ministry of Labor expectations—covering minimum wages, equal pay law, and pay equity—organizations can build trust with staff. Transparent reporting also helps improve retention, boost morale, and strengthen the employer brand through promoting diversity and inclusion.
See also: Employer costs for an employee in Brazil
Streamline Brazil payroll and HR compliance with Deel
Pay transparency marks a cultural shift toward accountability and inclusion. By using the right tools and following Brazil’s equal pay law and labor laws, your organization can go beyond compliance and create a fairer workplace.
Fortunately, Deel is revolutionizing payroll in Brazil.
Deel Local Payroll, powered by PaySpace, is a cloud-native payroll solution that makes Brazil payroll and compliance seamless. If you’re managing payroll in Brazil and abroad, you can use Deel Global Payroll for fully-managed payroll services and centralized operations, all supported by in-house experts.
- Real-time payroll capabilities for improved visibility and accuracy
- Track pay structures against minimum wages and gender pay gap metrics
- Create compliant reports for March and September
- And more
Whether you’re just beginning to audit your compensation structure or you’re ready to submit your first report, Deel is here to simplify the process, so you can focus on building an inclusive, transparent workplace that attracts and retains top talent. Book a demo today to learn more.
FAQs
What is the Equal Pay Act in Brazil?
Brazil has recently strengthened its legal framework to address gender-based pay discrimination. Law 14.611, enacted in 2023, amends the Brazilian Labour Code to require equal pay for equal work and eliminate gender-based salary discrimination.
The law mandates salary transparency—employers must disclose salary ranges for each position—and introduces specialized labor inspection units to enforce compliance. Companies found to be engaging in discriminatory pay practices are subject to investigation and penalties.
What is the 13 salary in Brazil?
The 13th salary is a mandatory annual bonus paid to all employees in Brazil. It is equivalent to one month’s salary and is typically paid at the end of the year. Employees who have worked the full year receive the full amount, while those who joined later receive a prorated portion.
The payment can be made as a lump sum in December or split into two equal installments: one between February and November, and the other by December 20. Employees dismissed before the year ends are entitled to a prorated 13th salary. This benefit is regulated by federal law and is considered part of standard payroll compliance in Brazil.
What is the pay scale in Brazil?
Brazil operates with a legally defined minimum wage, which is R$1,518.00 per month in 2025.
Salaries in Brazil vary widely by sector, position, and region, but all must comply with the minimum wage law. Social security and payroll contributions are based on these wage bands, and benefits such as pensions and unemployment are similarly calculated using these figures.
Employers must also contribute to other mandatory funds, such as the Severance Pay Fund (FGTS), based on employee wages.
About the author
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.
