Pay Gap

National and international data on pay gaps based on gender are periodically disseminated by institutional channels and campaigns to neutralise differences not based on objective causes are multiplying. Nevertheless, work of the same nature, produced in the same quantity and quality continues to dictate different remuneration values between men and women. 

The Pay Gap is a critical issue to which national legislation has, in recent years, reserved increasing attention. In 2018, Law no. 60/2018, of 21 August, was published, which reaffirms the requirement for companies to design transparent remuneration policies, based on the functions performed and on neutral criteria, common to men and women. The Strategy and Planning Office is now responsible for the annual publication of a barometer, which diagnoses the Pay Gap by activity sector, and a balance sheet, which identifies the Pay Gap by company.

Depending on the asymmetries detected, the Authority for Working Conditions will intervene, requiring the presentation of a plan to evaluate such differences. In addition, any worker may request a binding opinion from the Commission for Equality in Labour and Employment as to the existence of pay discrimination based on gender, with differences unduly justified being presumed to be discriminatory.

Failure to comply with this legal framework results in the commission of an administrative offence and the payment of fines, possible deprivation of the right to take part in public tenders and unavoidable damage to reputation. Several European legislative interventions, namely in the financial sector, have also focused on the neutrality of remuneration policies based on gender. The issue has also become an even higher priority within the ESG (Environment, Social and Governance) movement and current corporate governance requirements.

For all these reasons, a growing number of organisations have assumed the strategic commitment to neutralise inequalities, including not only differences in remuneration, but also biases that hinder the promotion/progression of the under-represented sex.

Underlying such an objective is a legal assessment that requires an answer to complex questions: Which jobs should be compared? What qualifies the work to be considered, quantitatively and qualitatively "equal"? Which remuneration components should be considered? What changes should be made to remuneration policies? What fiscal impact may such remuneration components and changes entail? This exercise requires the use of rigorous metrics and an analysis based on comparative practices tested in other jurisdictions.

To this end, SÉRVULO has a multidisciplinary team specializing in labour (Rita Canas da Silva), regulatory and corporate governance (Paulo Câmara) and tax (Teresa Pala Schwalbach).

 SÉRVULO's approach is tailor-made, adjustable to the situation of each organization, and focuses wholly or partially on the following dimensions

• Audit
• Diagnostics
• Risk assessment
• Definition/review of remuneration policies, in their various legal and fiscal components
• Design/review of equality plans
• Preparation of assessment programmes
• Planning/organizing certified training
• Inclusive language
• Follow-up