This article develops a comparative analysis of Brazil’s and Germany’s legislation regarding the Gender Pay Gap. It starts with a brief overview of the concept, then proceeds to describe and compare the Transparency in Wage Structures Act (Entgelttransparenzgesetz – 2017)[1] of Germany and Lei Nº 14.611 (Lei de Igualdade Salarial – 2023)[2] of Brazil, outlining their commonalities and key differences.
1. The Gender Pay Gap Definition
The gender pay gap can be described as the disparity in earnings between men and women, which often reflects a broader inequality of the labor market:
The gender pay gap encompasses differences in men’s and women’s earnings, which refer to (a) remuneration in cash or in kind paid to an employee for the work done, together with remuneration for time not worked; (b) net earnings from self-employment; or (c) total earnings from both employment and self-employment[3].
It entails a systemic issue in how work is valued and rewarded across countries and economic sectors. One way in which the pay gap manifests is the under-representation of women in leadership, high-paying roles and strategic positions. Additionally, women often have to undertake disproportionate familial responsibilities, which results in reduced earnings and benefits compared to men who engage in full-time work.
Since the Gender Pay Gap is an issue for both developed and developing countries, we will take a look at how Brazil’s and Germany’s legislation approach the same challenge.
2. Comparative Overview
The Transparency in Wage Structures Act (Entgelttransparenzgesetz – 2017) of Germany and Law Nº 14.611 (Lei de Igualdade Salarial – 2023) of Brazil both share objectives and principles to promote equal pay for women and men through enforcement, transparency and corrective measures, but they differ in their provisions.
Germany’s Law prohibits direct and indirect discrimination based on gender, defining direct discrimination as paying less due to gender and indirect discrimination as neutral criteria that disadvantage one gender without a legitimate cause. Similarly, Brazil’s Law mandates equal pay and remuneration criteria for identical roles or work of equal value, extending protections against discrimination based not only on sex but also on race, ethnicity, origin, or age.
The scope of the laws differs in terms of the employers and employees covered. Germany’s Law applies to employees in establishments with more than 200 workers, and includes private sector, public servants, federal judges, home workers etc. In contrast, Brazil’s Law targets only private legal entities, with 100 or more employees, without addressing the public sector.
Enforcement, Transparency and Evaluation Mechanisms
Enforcement mechanisms in both laws combine inspections, penalties, and corrective actions. Germany’s Law encourages employers with over 500 employees to conduct internal evaluations to assess pay equality, and if discrimination is identified, employers must take corrective measures. However, the law does not specify monetary penalties for non-compliance, relying instead on legal invalidity of provisions and stating only that: In the event that an internal company evaluation procedure reveals remuneration-related discrimination based on gender, the employer shall take the necessary measures to eliminate such discrimination (Section 19).
Brazil’s Law takes a more punitive approach. It imposes a fine, mandates workplace inspections, and establishes a specific channel for reporting discrimination. Additionally, if inequalities are identified in the transparency reports, employers must implement action plans with clear goals and timelines, and non-compliance with the obligation to correct the inequality entails an administrative fine of up to 3% of the employer’s payroll, capped at 100 minimum wages.
Transparency is a mechanism used by both laws: Germany’s Law grants employees the right to request information on the average monthly gross remuneration and up to two remuneration components for a comparable role. Additionally, employers with over 500 employees subject to the German Commercial Code must file reports every three to five years on gender equality and equal pay measures.
Brazil’s Law mandates semi-annual transparency reports, containing anonymized data on salaries, remuneration, and the proportion of leadership roles held by women and men, along with statistics on disparities related to race, ethnicity, nationality, and age. The reports are publicly accessible via a website.
Germany’s law requires Federal Governmental evaluation every four years, while Brazil’s law does not explicitly mandate periodic evaluations but only mandates the semi-annual report, which provides updated labor market data to inform policy.
Key Differences
Four key differences emerge from the comparison:
Scope – Brazil emphasizes public accessibility and intersectional data (e.g., race, age), while Germany prioritizes a more focused evaluation process, addressing only gender inequality.
Corrective measures – Both laws adopt measures to remedy inequalities, but the Brazilian law is more prescriptive.
Individual oversight mechanisms – Brazil relies on an anonymous reporting channel, while Germany strengthens the individual employee’s right to access information and verify pay equity on their own.
Evaluation – Germany requires periodic governmental evaluations; Brazil relies only on biannual reports, without a structured review process.
3. Conclusion
Both laws are frameworks for promoting gender pay equality, but with distinct priorities. Germany emphasizes individual rights to information and internal accountability, while Brazil prioritizes public reporting, with punitive measures.
The German law’s procedures for individual disclosure and works council involvement suggest a highly regulated labor system with strong employee representation. Brazil’s law, with its broader anti-discrimination scope, stricter penalties, and provision for diversity programs, aims to address a labor market with greater informality and challenges beyond pay. Together, they illustrate varied approaches to a shared goal, shaped by their respective labor markets and legal traditions, heavily influenced by their social and economic contexts.
[1] Federal Republic of Germany. Transparency in Wage Structures Act (Entgelttransparenzgesetz – EntgTranspG), 30 June 2017. English translation available at: Entgelttransparenzgesetz (EntgTranspG).
[2] Brazil. Lei Nº 14.611, de 3 de julho de 2023. Dispõe sobre a igualdade salarial e de critérios remuneratórios entre mulheres e homens. Available at: L14611.
[3] Equal pay: an introductory guide / Martin Oelz, Shauna Olney, Manuela Tomei; International Labour Office, International Labour Standards Department, Conditions of Work and Equality Department – Geneva: ILO, 2013 wcms_216695.pdf.
Priscila Márcia da Silva Santos is associate at Pacheco Neto Sanden Teisseire Law Firm.
Luccas Miranda Machado de Melo Mendonça is associate at Pacheco Neto Sanden Teisseire Advogados.
