Uruguay Pay Gap Bill

Overview

The Uruguay Pay Gap Transparency Bill, officially known as the “Proyecto de ley ‘Reporte, sistematización y transparencia de los datos sobre brecha salarial de género’” (Bill for the Reporting, Systematization, and Transparency of Gender Pay Gap Data), represents a significant legislative initiative aimed at enhancing understanding and addressing the persistent gender pay gap in Uruguay. First presented in June 2022, this bill seeks to declare the collection and systematization of gender pay gap data as a matter of national interest. Its primary objective is to establish a robust, official indicator of the pay gap across both public and private sectors, thereby providing a crucial evidence base for the design of more effective public policies to promote gender equality in the labor market. The bill has successfully passed the Senate in August 2025 and is currently awaiting consideration and approval by the Chamber of Representatives, marking a critical step in its legislative journey.

This proposed legislation emerges against a backdrop of long-standing efforts in Uruguay to achieve pay equity, complemented by existing laws prohibiting discrimination and mandating equal remuneration for work of equal value. Despite these foundational legal frameworks, recent studies by the National Institute of Statistics (INE) consistently reveal a significant gender pay gap, averaging around 27% in favor of men, which underscores the need for more targeted interventions. The bill's key innovation lies in its focus on systematic data collection and public transparency, moving beyond general prohibitions to establish a mechanism for quantifying and monitoring the pay gap's magnitude and evolution over time. This approach is expected to shed light on the structural causes of pay inequality, including occupational segregation and the undervaluation of traditionally feminized work, which are often not fully captured by simpler 'equal pay for equal work' metrics.

The bill was initially presented by the Frente Amplio political party in June 2022, and after being archived, it was reactivated and unanimously approved by the Senate in July 2025, following some modifications. The Vice President of the Republic, Carolina Cosse, highlighted its historical significance for advancing gender equality, emphasizing that knowing the reality in depth is essential for transformation. By mandating the National Institute of Women (Inmujeres) to develop and publish an annual indicator based on comprehensive social security data, the bill aims to provide a reliable and public source of information. This transparency is intended to empower both the state and civil society to formulate evidence-based policies, fostering a more equitable and inclusive labor landscape in Uruguay. The declaration of national interest underscores the government's commitment to addressing this societal challenge at a systemic level, recognizing that gender pay equity is not merely an individual issue but a matter of national development and social justice.

Definitions

The Uruguay Pay Gap Transparency Bill, while primarily focused on data collection and reporting, operates within a broader legal framework that defines key concepts related to pay equity and non-discrimination. Understanding these definitions is crucial for interpreting the bill's intent and its potential impact. Central to the bill is the concept of the gender pay gap, which refers to the average difference between the remuneration of men and women. This gap is not solely indicative of direct discrimination for the same job but also encompasses disparities arising from factors such as occupational segregation, the unequal valuation of work predominantly performed by women, and barriers to accessing leadership positions. It is typically expressed as a percentage of men's earnings, reflecting the extent to which women earn less than men on average. The bill aims to provide a standardized, official calculation of this gap, moving beyond various statistical estimates to a single, authoritative national indicator.

The term remuneration, as understood in Uruguayan labor law and international conventions, extends beyond basic wages to include all forms of payment and benefits received by an employee in connection with their employment. This comprehensive definition typically covers, but is not limited to, base salary, overtime pay, bonuses, commissions, holiday pay (aguinaldo and salario vacacional), social security contributions, health insurance, pension benefits, and any other financial or non-financial benefits provided by the employer. This broad scope ensures that any analysis of pay equity considers the full spectrum of compensation, preventing circumvention of equal pay principles through differential provision of benefits. Uruguay's existing Law Nº 16.045 of June 2, 1989, on equality of treatment in labor activity, implicitly covers remuneration as a criterion where discrimination is prohibited, and the data collected under this bill will reflect this comprehensive understanding of earnings.

Furthermore, the bill implicitly relies on the principle of equal pay for work of equal value, a cornerstone of international labor standards, particularly ILO Convention 100, which Uruguay ratified in 1989. This principle dictates that men and women should receive equal remuneration for jobs that, while perhaps different in nature, are deemed to have equivalent value based on objective criteria such as skill, effort, responsibility, and working conditions. This goes beyond