Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The National Minimum wage is 1,100 Brazilian reals.
The payroll cycle is either bi-weekly or monthly and is paid on the 15th and 30th of each month.
There is a mandatory 13th salary equal to one months’ pay is paid out at the end of the year.
A full-time workweek is 44 hours or 8 hours per day. A one hours rest period is required for employees who work more than 6 hours per day.
Overtime is limited to up to 2 hours per day. Any hours worked in excess of 8 per day is considered overtime and is paid at the rate of 150% of the regular pay.
Employees can be exempt from overtime pay if:
- They perform activities that are not compatible with defined working hours and are completed within a company’s facilities
- They are an employee in a trust position
- The employee works from home
Work on a holiday is paid at the rate of 200% of the regular pay.
If an employee has been employed for 12 months, they are entitled to 30 days of paid annual leave. The leave must be taken within the following 12 month period.
Leave can be taken on 3 different occasions, where one of the periods must be at least 14 days and the other two must be for at least 5 days.
Annual leave cannot be taken 2 days before a holiday or weekend.
Employees are able to cash in 1/3 of their annual leave and receive a holiday bonus in lieu.
There are 13 national holidays. Other additional holidays may apply depending on the region.
For the first 15 days of illness, the employer pays 100% of the employee’s salary. From the 16th day onward, social security pays for the leave (up to 6,101 BRL)
Female employees are entitled to 120 days of paid maternity leave and extension by a maximum of 4 weeks on medical grounds (two weeks prior and two weeks after birth). Maternity leave is paid at 100% of the regular wages by the employer, however, the employer can claim payment back through deductions on social security payments.
It the employer is enrolled in the government scheme (Empresea Cidada), maternity leave can be extended to a total of 180 days.
Fathers are entitled to 5 days paid paternity leave. Pay is 100% of regular wages and is paid by the employer. If the employer is enrolled in the government scheme (Empresa Cidada), paternity leave can be extended to 20 days.
There are no provisions in the law regarding parental leave.
Marriage– 3 days
Bereavement leave– Death of a parent, child, or spouse- 2 days
Employment contracts can be terminated at any time, as long as the proper notice is given.
Employees who are exempt from this are those that fall under union representatives, members of the Internal Committee for Accidents Prevention (CIPA), pregnant employees, employees with work-related injuries, and employees who fall under certain collective agreements.
Termination must be communicated in writing.
Notice is only required in certain cases.
Termination of the employment agreement initiated by the employer:
- Up to 1 year of employment- 30 days’ notice
- Over 1 year of employment- 30 days’ notice + 3 additional days for each year worked (up to a maximum of 60 additional days)
Termination initiated by the employee:
- The employee must give 30 days’ notice. If the termination is initiated during the probation period, the employee may request to be released earlier than the 30 days.
Termination under mutual consent:
- The notice period is halved.
The amount of severance pau varies based on how the employment agreement is terminated.
When severance is required, the employee is entitled to one month’s wages for every year employed.
Employers contribute 8% to the Severance Fund (FGTS), and when the employee is dismissed by the employee, 4o% of the balance is paid as a termination fine. When the termination falls under mutual consent, 20% of the balance is paid out.
The probation period is 45 days but can be extended to 90 days.
17% standard rate.