Overview

Capital
Brasilia
Currency
Brazilian Real (BRL)
Date Format
dd/mm/yyyy

COVID-19

In response to COVID-19, the Sao Paulo government has moved the 2021 and 2022 Corpus Christi (usually celebrated in June), and Conciencia Negra (usually celebrated in November), and Sao Paulo anniversary (usually celebrated in January) holidays to be held at the end of March 2021. This means that March 26April 1, will now be holidays. Additionally, April 2 which is “sexta santa” will continue to be a national public holiday.

Workers that will be required to work within the 10 days range (March 26 to April 2) listed above must be compensated at a 200% salary rate (the standard rate for Sundays and holidays).

Taxes

Employer

Employer Payroll Tax

Group A
Payroll Burden and Obligations - Obliged for All Cases
23.0%
Social Security (INSS)
5.8%
Third Party Companies
8.0%
FGTS
Group B
Payroll Burden and Obligations - Obliged for All Cases Except Employee Self Resignation
8.33%
1/12 Vacations
2.78%
1/3 Holidays
8.33%
13th Salary
7.50%
Taxes Over Burden
Group C
8.33%
Early Dismissal
5.11%
FGTS
5.21%
Taxes Over Burden
82.39%
Employee

Employee Payroll Taxes

7.5% - 14.0%
Social Security
7.5% - 14% Total Employee Cost

Employee Income Tax

0.00%
Up to 1,903.98 BRL
7.50%
1,903.98- 2,826.65 BRL
15.00%
2,826.65 - 3,751.05 BRL
22.50%
3,751.06 - 4,664.68 BRL
27.50%
4,664.68 BRL and above
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Slovakia
Brazil
South Africa
Georgia
Macedonia
82.39%
41.12%
37.2%
82.39%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Brazil
Georgia
Belarus
Ukraine
45%
28%
27.65%
14%
2%
1%
0%

Minimum Wage

General

The National Minimum wage is 1,100 Brazilian reals.

Minimum wage (per month)
$4000
$2663
$2491
$208
$47
$36.80
$2.33
Geneva
Luxembourg
Australia
Brazil
Malawi
Angola
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

The payroll cycle is either bi-weekly or monthly and is paid on the 15th and 30th of each month.

13th Salary

There is a mandatory 13th salary equal to one months’ pay is paid out at the end of the year.

Working Hours

General

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

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.

Leave

Paid Time Off

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.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Albania
Brazil
Michigan
China
Federal
30
13
43
30
12
42
28
14
42
30
13
43
2
11
13
5
7
12
10
10
Public Holidays

There are 13 national holidays.  Other additional holidays may apply depending on the region.

Sick Days

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)

Maternity Leave

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.

PAID MATERNITY LEAVE (DAYS)
410
365
365
120
45
30
0
Bulgaria
Serbia
Albania
Brazil
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

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.

 

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

Marriage– 3 days

Bereavement leave– Death of a parent, child, or spouse- 2 days

Termination

Termination Process

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 Period

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.
Severance Pay

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.

Probation Period

The probation period is 45 days but can be extended to 90 days.

VAT

General

17% standard rate.

Version History

January 1, 2021
Minimum wage increase from R $ 1,045 to R $ 1,100

    Stay up to date on payroll & employment law changes

    Questions & Answers

    Subscribe
    Notify of
    guest
    14 Comments
    Oldest
    Newest Most Voted
    Inline Feedbacks
    View all comments
    Larissa C.
    Larissa C.
    5 months ago

    What is an employee entitled to if he/she resigns?

    Erez Greenberg
    Admin
    5 months ago
    Reply to  Larissa C.

    Employees who resign with the proper notice period are entitled to receive the balance of their wages, a proportional payment for untaken holidays plus one-third of the holiday remuneration, access to their FGTS, and a proportional 13th-month salary (Christmas bonus).

    CJ Alves
    CJ Alves
    2 months ago

    When can employees start using their annual leave? Thanks.

    Emily Kuhnert
    Admin
    2 months ago
    Reply to  CJ Alves

    Hi CJ, Good question. By law, an employee must be employed for 12 continuous months of employment before they are able to begin enjoying their paid vacation.

    Leslie Banduch
    Leslie Banduch
    30 days ago

    Are salary increase mandatory in Brazil? If so, what was the increase for 2021?

    Emily Kuhnert
    Admin
    30 days ago
    Reply to  Leslie Banduch

    Hi Leslie, great question. Annual salary increases are not mandatory by law. However, it is common practice to negotiate for annual salary adjustments under collective bargaining agreements.

    Joe
    Joe
    13 days ago

    Is it true that due to COVID-19 the Brazil government has made it where employers can suspend paying their employees? I friend of mine told me that is the case but it seams hard to believe.

    Emily Kuhnert
    Admin
    12 days ago
    Reply to  Joe

    Hi Joe, thank you for your question. We are not familiar with this, however, last July the government announced measures that would allow an employer to suspend an employment agreement. Thie measure also allowed an employer to reduce working hours and proportionally reduce pay. This could be what your friend was referring to.

    Joe
    Joe
    7 days ago
    Reply to  Emily Kuhnert

    Thank you for answering, I do have a follow up. My friend that live in Brazil she works for a customer service company. She told me she hasn’t been paid in two and a half months. Her employer keeps telling her hang in their it will be a matter of time before we can pay you.

    She feels if she quits she will never get paid so keeps hanging in their. In the last few weeks they upped her hours and she works every day.

    She doesn’t know who to complain to. Is there a government service she can call? Is there any legal firms in the city Natal Brazil that can help her? She has no money but in the US they’re law firms that help the poor. These law firms get paid from wealth philanthropist.

    Joe
    Joe
    6 days ago

    Thank you for answering, I do have a follow up. My friend that live in Brazil she works for a customer service company. She told me she hasn’t been paid in two and a half months. Her employer keeps telling her hang in their it will be a matter of time before we can pay you. 
    She feels if she quits she will never get paid so keeps hanging in their. In the last few weeks they upped her hours and she works every day. 
    She doesn’t know who to complain to. Is there a government service she can call? Is there any legal firms in the city Natal Brazil that can help her? She has no money but in the US they’re law firms that help the poor. These law firms get paid from wealth philanthropist.

    Emily Kuhnert
    Admin
    4 days ago
    Reply to  Joe

    Hey Joe, it is best for your friend to seek out legal counsel, this is not something that we are able to advise on.

    Joe
    Joe
    3 days ago
    Reply to  Emily Kuhnert

    Thanks for answering me. She says she can not afford Legal counsel do you know of a law firm in the Natal area that helps the poor?

    Joe
    Joe
    3 days ago
    Reply to  Emily Kuhnert

    what about going to the Police?

    Emily Kuhnert
    Admin
    3 days ago
    Reply to  Joe

    She can try making a formal complaint here https://www.gov.br/pt-br/servicos/realizar-denuncia-trabalhista. I would also suggest that she do some research in finding organizations that would be able to help her.

    See how Papaya Global can help you automate your global payroll or PEO whilst staying 100% compliant with local labor laws