Introduction to the Proposed Law
In Mexico’s Chamber of Deputies, a new salary equality law, the General Law on Salary Equality between Women and Men, is being championed by Morena party diputada Julia Arcelia Olguín Serna. This regulatory framework aims to prevent the gender pay gap by imposing new obligations on employers, including salary audits, transparent payment mechanisms, and evaluation tools for job positions.
Key Provisions of the New Law
The proposed law mandates salary transparency in employment relationships, incorporating:
- Salary audits
- Wage registers
- Position valuation systems to determine remunerations
- Individuals’ right to relevant information about salary policies and their own compensation
Moreover, salary equality plans will be obligatory for workplaces with over 50 employees. Companies can aim for a “Salary Equality Certificate”, a badge demonstrating the absence of gender-based wage disparities.
Enforcement and Obligations
The new law assigns the Secretariat of Labor and Social Prevision (STPS) as the authority to oversee compliance with the regulations. STPS will be required to conduct wage gap studies and promote salary equality awareness and training for both employers and employees, informing them of their rights and non-discriminatory practices.
The Secretariat of Women will develop a Technical Guide for conducting salary audits.
Employers will have one year, starting from the law’s enactment, to meet these new obligations.
The Persistent Gender Wage Gap
Despite recent constitutional and labor law reforms acknowledging the gender wage gap and committing the state to its eradication, little progress has been made.
The latest “Labor Poverty” report by the National Institute of Statistics and Geography (Inegi) reveals that women earn 25% less than men. In other words, for every 100 pesos earned by men, women receive 75 pesos.
Key Questions and Answers
- What is the proposed law about? The General Law on Salary Equality between Women and Men aims to prevent the gender pay gap by mandating salary audits, transparent payment mechanisms, and evaluation tools for job positions.
- Who is championing this law? Diputada Julia Arcelia Olguín Serna from the Morena party is leading the initiative.
- What are the key provisions of this law? The law mandates salary transparency, incorporating salary audits, wage registers, position valuation systems, and individuals’ right to relevant information about salary policies.
- Who will enforce this law? The Secretariat of Labor and Social Prevision (STPS) will oversee compliance, conduct wage gap studies, and promote salary equality awareness and training.
- How significant is the gender wage gap in Mexico? According to Inegi’s report, women earn 25% less than men, indicating a substantial disparity in labor compensation.
