Salary Transparency and Remuneration Criteria Report: Deadline and Implications for Companies
Companies with 100 or more employees should be aware of the deadline for sending information about their remuneration criteria and initiatives aimed at promoting diversity and gender equality. This requirement is laid down in the Equal Pay Law (Law 14.611/2023), and the data must be sent between February 3 and 28, through the Emprega Brasil Portal, in the section for employers. The information collected will support the third edition of the Salary Transparency and Remuneration Criteria Report, prepared by the Ministry of Labor and Employment (MTE).
Organizations that have already participated in previous editions of the report in 2024 should update their data. On March 17, the MTE will publish the 3rd Report, and companies should review their information and, if necessary, add justifications for the results presented. The legislation also requires organizations to publish the report on their digital channels by March 31.
GM/MTE Normative Instruction No. 6, published on September 17, 2024, brought guidelines on the application of the Equal Pay Act, including clarification that reports will not disclose individual data such as name, position or personal characteristics, as well as restricting the display of information on occupations with fewer than three employees.
In addition, the annex to IN No. 6 details more than 30 methodological aspects used in the preparation of the report.
Judicial Suspension of Obligation
An injunction with erga omnes effect (valid for all companies) was reinstated, suspending the obligation to publish the report for companies with 100 or more employees.
The measure was taken in case no. 6002221-05.2024.4.06.0000/MG[1], filed by the Federation of Industries of the State of Minas Gerais (FIEMG) and decided in July 2024.
Initially, this injunction had been revoked by the Presidency of the TRF-6, but was later reinstated by the Plenary of the Court, which held that the Presidency did not have the power to overrule decisions by other judges of the Court.
MTE's position
Although the injunction is in force and suspends the obligation to publish the report, the Ministry of Labor and Employment has acted in disagreement.
The ministry continues to issue notes and publications that reinforce the supposed requirement to comply with the standard, which has led to uncertainty and concern.
Options and Risks for Companies
Although the suspension of the publication of the report is in force, there is a possibility of revoking or modifying the decision, as happened in March 2024, when the injunction was lifted a few days before the deadline for publication of corporate reports.
Faced with this uncertain scenario, organizations can adopt two approaches:
- Send the information and then publish the MTE report in full;
- Send the information and do not publish the report while the injunction is in force*.
*If the injunction is lifted, and the company has chosen not to publish the report, there is the possibility of filing an individual lawsuit to request that the obligation be lifted again.
Debates in the National Congress
Parallel to the legal dispute, the Chamber of Deputies is processing Legislative Decree Bill (PDL) 169/24, which seeks to suspend the application of Decree 11.795/23 and Ordinance 3.714/23, which regulate Law 14.611/23.
The proposal reflects the challenges of implementing pay transparency policies, which must balance the pursuit of fairness with the preservation of sensitive business data and sector specificities.
CADE's Technical Note and Its Impacts
Recently, the Administrative Council for Economic Defense (CADE) published Technical Note No. 3/2024, analyzing the competitive impacts of Decree No. 11.795/2023 and Ordinance No. 3.714/2023, which regulate Law No. 14.611/2023. The document warns of the risks of disclosing competitively sensitive information, such as salary data, which could facilitate collusive practices between companies, damaging competition in the labor market.
CADE recommends the suspension or revision of the provisions that determine the publication of salary information, advising the MTE to adopt precautionary measures in the disclosure of these reports to avoid anti-competitive effects. This opinion adds yet another element to the debate on mandatory wage transparency, strengthening companies' arguments against the requirements imposed by the regulations.
Final considerations
For those who choose not to comply with the publication of the report in view of the injunction, it is recommended to act in a calculated and preventive manner to avoid possible setbacks and unmapped risks.
We will continue to monitor the news and bring you updates on the subject.
[1] The case is being held in secret, which is why we have not had access to the full case file.
