Brazil
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Brazil
Everything you need to know about payroll, benefits & hiring top talent in Brazil
Currency
The Brazilian Real (BRL)
Salary payment frequency
Monthly or Bimonthly
Capital
Brasilia
Time Zone
GMT - 3:00
Official Languages
Portuguese
Is English spoken?
No
Quick Links
Introduction
General Overview & Economic Facts
- Brazil is the largest country in South America and the fifth largest country in the world by both land area and population. It has a diverse economy with a mix of agriculture, manufacturing, and services
- Brazil has a population of over 212 million people, and its labour force is approximately 107 million people. The unemployment rate in 2021 was around 13%
Why Employ In Brazil?
- Brazil has a large and diverse workforce, with a population of over 212 million people. This provides employers with a large pool of potential candidates with varying skills and backgrounds
- Labour costs in Brazil are generally lower than in many developed countries, which can make it an attractive location for businesses looking to reduce costs
- Brazil is strategically located in South America, making it a hub for trade and commerce in the region. It has strong connections to neighbouring countries, as well as to major trading partners such as China, the United States, and the European Union
- Brazil has the largest population group with 69.9% (149.1 million) of the population falling into the working-age group of 15-64 years
Overview Of The Labour Law
- Brazil has a comprehensive labour law framework that provides protections for workers, but also allows for flexibility in hiring and firing practices. Employers are required to provide benefits such as vacation time, social security, and health insurance, but these costs are generally lower than in many developed countries
Fun Country Facts
- Brazil is home to the world’s largest carnival celebration, which takes place every year in Rio de Janeiro. The carnival attracts millions of visitors from around the world who come to enjoy the music, dancing, and parades
- Brazil has the largest rainforest in the world, the Amazon Rainforest, which covers over 60% of the country’s land area
- Brazil is the largest producer of coffee in the world, accounting for around one-third of global coffee production
Why Use Playroll Services For Brazil?
- Employing in Brazil requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance
- This can get quite complicated, especially with the complexity of employment laws in Brazil.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Social Security (INSS)
Calculated on total monthly compensation
Non-financial
20.00%
20.00%
Financial industries and equivalent status entities
22.50%
Mandatory Medical Exam
Once off cost.
Varies by location of clinic.
Workers Accident Insurance (RAT)
FAP- Accident Prevention Factor. Determined by relevant government institution each year
Low risk work activity
1 x FAP
Medium risk work activity
2 x FAP
Severe risk work activity
3 x FAP
Third Party Social Contributions
Calculated on total monthly compensation
INCRA
0.20%
SESC
1.50%
SENAC
1.00%
SEBRAE
0.60%
Educational allowance (SESCOOP)
2.50%
Annual Bonus Accrual
Calculated on total monthly remuneration
Vacation
11.11%
13th salary
8.33%
Employee severance indemnity fund (FGTS)
FGTS/termination penalty – 40%
8.00%
Recreational pay (food ticket)
BRL 26.50 per day
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Social Security
Calculated on employee’s gross monthly salary
BRL 0.00 – BRL 1,212.00
7.50%
BRL 1,212.01 – BRL 2,427.35
9.00%
BRL 2,427.35 – BRL 3,641.03
12.00 %
BRL 3,641.04 – BRL 7,087.22
14.00%
Income Tax
Income tax is ‘Pay As You Earn’
BRL 0.00 – BRL 1903.98
0.00%
BRL 1903.98 – BRL 2826.65
7.50%
BRL 2826.66 – BRL 3751.05
15.00%
BRL 3751.05 – BRL 4664.68
22.50%
BRL 4664.68 or more
27.50%
Employment Terms
General
Minimum Wage
- 1212,00
Working Hours
-
Maximum of 8 hours per day and 44 hours per week
-
Minimum 60-minute meal interval- if working time is 6 or more hours
-
Typical working hours are 08:00 to 18:00, Monday to Friday
Overtime
- Maximum of 2 overtime hours per day
Notice Period
- Employed for 1 year- 30 days
- Employer for 1 year or longer- 90 days
Severance Pay
- Termination without cause:
Balance of wages
Unused annual leave
1/3 of holiday remuneration
Apportioned 13th month salary
Access to funds deposited in severance fund FGTS)
Payments due under collective agreements
- Termination with cause:
Balance of wages
Holiday remuneration
Apportioned 13th month salary
Probation Period
- There is no statutory probation period
- Employee can expect a probation period of a maximum 90 days
Bonus
- 13th month pay equal to 1 month’s salary
- Paid in two instalments, in November and December
Public Holidays
Public holidays 2023
- January 1st – New Year’s Day
- February 20th – 22nd – Carnival
- April 7th- Good Friday
- April 21st – Tiradentes Day
- May 1st – Labour Day
- June 8th – Corpus Christi
- September 7th – Independence Day
- October 12th– Our Lady of Aparecida / Children’s Day
- October 28th – Public Service Holiday
- November 2nd – All Soul’s Day
- November 15th – Republic Proclamation Day
- December 24th – Christmas Eve
- December 25th – Christmas Day
- December 31st – New Year’s Eve
Leave
Paid Leave / Vacation Days
- 30 calendar days per year
- 4 calendar weeks
Sick Leave
- Paid leave
- Paid by employer
- Minimum 15 days per year
Maternity Leave
- Paid leave
- Paid by Social Security
- Minimum 120 days per annum
- Maximum 180 days per annum
Paternity Leave
- Paid leave
- Paid by employer and Social Security
- Minimum 5 days
- Maximum 20 days
Study Leave
- Unpaid leave
- Minimum 2 months per year
- Maximum 5 months per year
Adoption Leave
- Same as maternity and paternity rights
Bereavement Leave
- Paid leave
- Paid by employer
- 2 days per year
Marriage Leave
- Paid leave
- Paid by employer
- 3 days
Blood Donation Leave
- Paid leave
- Paid by employer
- 2 days per year
Medical Appointment Leave
- Paid leave
- Paid by employer
- 2 days per year
Start hiring in Brazil today!