Overview

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

Contributions

Employer

Employer Payroll Contributions

20.00% to 24.50%
Social Security contributions (INSS)
8.00%
Employees Severance Indemnity Fund (FGTS)
28.00% - 32.50%
Employee

Employee Payroll Contributions

Social Security Reform contributions based on progressive rates:
7.50%
Social Security up to 1,100.00 BRL
9.00%
1,100.01 BRL to 2,203.48 BRL
12.00%
2,203.48 BRL to 3,305.22 BRL
14.00%
3,305.23 BRL to 6,433.57 BRL (up to maximum contribution 751.99 BRL)
7.50% - 14.00% 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
Mexico
China
South Korea
Brazil
South Africa
Georgia
Macedonia
43.72%
40.92%
34.84%
32.5%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Brazil
Belarus
Ukraine
Cambodia
35%
28%
27.65%
14%
1%
0.6%
0%

Minimum Wage

General

The National Minimum wage is 1,100 Brazilian reals.

Minimum wage (per month)
$4000
$2663
$2518
$208
$36.80
$17.24
$2.33
Geneva
Luxembourg
Australia
Brazil
Angola
Tanzania
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

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

13th Salary

In Brazil, a mandatory 13th-month salary payment is paid to the employees at the end of the year.

Employees who have worked for 12 months are entitled to receive the full payment, while those who have worked for part of the year will receive a payment proportional to the period worked.

The 13-month payment is made in two instalments; one in November, which corresponds to the six months worked up to that date (with no INSS deduction from or withholding taxation due), and the second instalment in December (INSS contribution and withholding tax are applied to this second instalment.)

Working Hours

General

Standard working hours within Brazil are 44 hours per week, 8 hours per day.

The maximum weekly and daily working hours can differ as stipulated in employment contract /collective bargaining agreements.

Overtime

All work more than the standard 44 hours a week is to be paid as overtime and is regulated by the employment contract/collective agreements etc.  In general, overtime maximum limits are set at 2 hours per day and paid at 150.00% of the standard salary rate.

Work on a holiday is paid at the rate of up to 200.00% of the regular pay.

Leave

Paid Time Off

Paid leave in Brazil is set in the employment contract as a minimum of 30 days paid holiday a year (following completion of 1-year service) in addition to public holidays.

The leave is calculated as a monthly salary plus an additional bonus of one-third of the monthly salary and must be paid two business days before the start date of the leave.

The Labor Reform allows the split of the paid leave period, where the employee can take the leave in up to three periods, one of which cannot be less than 14 days and the others cannot be less than five days each.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Spain
Brazil
Tanzania
Brazil
Michigan
China
Federal
30
14
44
30
13
43
28
15
43
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

All employees are entitled to paid sick leave and must provide a medical certificate within 48 hours of the first day of sickness.

The employer pays the sick pay for the first 15 days (at a rate of 100.00% of the usual salary rate), then by the Social Security (INSS) as a benefit payment to the employee. However, the benefit does not correspond to the actual salary; it is a specific INSS based calculation based on contributions made and capped at approximately 6,100.00 BRL.

Maternity Leave

All female employees are eligible for maternity benefits, including when adopting a child. The maternity benefit will be paid to the employee for 120 days and is paid by INSS, the Brazilian social security agency. The employer can extend the maternity period to 180 days if enrolled in the government scheme (Empresea Cidada).

PAID MATERNITY LEAVE (DAYS)
413
410
365
120
40
30
0
Norway
Bulgaria
Serbia
Brazil
Malawi
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

The father is entitled to mandatory paid paternity leave of 5 days, which the employer can extend to 20 days if enrolled in the Government Program called “Empresa Cidadãs, provided some requirements established by the government program are observed.

Parental Leave

There is no additional Parental leave in Brazil.

Other Leave

Employees are entitled to up to 5 consecutive days of paid leave for the bereavement of a family member.

Employees are also entitled to 30 days of paid leave per year to provide urgent and essential care to a family member younger than 12 years of age and 15 days for an older family member.

Employees are entitled to up to 3 consecutive days of paid leave after getting married.

Termination

Termination Process

The termination process is standard in Brazil, with notice periods required unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, disobedience, etc.). Lack of notice of termination must be in writing and sent to the relevant governmental authorities.

Notice Period

In general, notice periods in Brazil are stipulated within the employment contract/collective agreement and are linked to the reason for termination and the employee’s length of service. For employees with 1-year service, the employer must provide 30 days’ notice. For employees with over one year of service, the employee must provide 30 days’ notice plus three additional days for each year of service (maximum of 60 additional days).

Employee termination must require the employee to give 30 days’ notice.

Should the termination be with mutual consent, the required notice period may be halved.

Severance Pay

In Brazil, severance pay is mandatory, but the amount differs based on the type of termination, i.e., termination by the employee, termination by mutual agreement, without cause, and with a cause in an indefinite term agreement and fixed-term agreement. According to the local laws in Brazil, there are also time limits for making severance payments within ten days of the employee’s last day at work.

It is common for employees to be paid one month for every completed year of service (with a percentage contribution from the Employers Severance Fund (FGTS)).

Probation Period

Probation periods in Brazil for permanent employees are 90 days

VISA

VISA

Any foreigners coming to work in Brazil will need a residence permit (either temporary or permanent) and a work visa (Autorizaçao de Trabalho). The prospective employer in Brazil must apply for a work permit at the Brazilian Ministry of Labour and Employment (Ministério do Trabalho e Emprego) by submitting the work contract and a set of other required documentation. Once the approval of the application is received, the application for a work permit must be made to the Brazilian embassy or consulate in the future employee’s home country.

For both the Brazilian residence and work permits, the type of work visa required depends on the type of work activity involved in the role in Brazil. Different jobs and qualifications will require different work visas, both temporary and permanent visas.

The most applied for visas are:

  • Temporary work visa (Visto Temporario V) initially issued for two years (although a second two-year extension may be possible). After completing four years with the same company, should the employer wish, they may support the employee with applying for a permanent work visa.
  • Permanent work visa (Visto Permanente) issued to foreigners who are entitled to permanent residence in Brazil. Usually, this applies to professional researchers or scientists (for activities exceeding two years), investors (provided the investment sum exceeds the reported required amount by the Brazilian Ministry of Labour and Employment).

VAT

General

The commonly used standard rate of VAT ( ICMS ( Imposto Sobre Circulação de Mercadorias e Serviços)) in Brazil is 17.00%; however, these do differ slightly regionally;

  • The ICMS rate of 17.00% applies to the following states: Acre, Alagoas, Ceará, Espírito Santo, Goiás, Mato Grosso, Mato Grosso do Sul, Pará, Piauí, Rondônia, Roraima and Santa Catarina.
  • The ICMS rate of 18.00% applies to the following states: Amazonas, Amapá, Bahia, Distrito Federal, Maranhão, Minas Gerais, Paraíba, Paraná, Pernambuco, Rio Grande do Norte, Rio Grande do Sul, São Paulo, Sergipe and Tocantins.
  • The ICMS rate of 19.00% applies in Rio de Janeiro.

Version History

January 13, 2022
Employer payroll contributions updated
October 11, 2021
Bereavement leave changed to 5 days, was 2 days
January 1, 2021
Minimum wage increase from R $ 1,045 to R $ 1,100

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    Questions & Answers

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    17 Comments
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    Larissa C.
    Larissa C.
    1 year ago

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

    Erez Greenberg
    Admin
    1 year 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
    11 months ago

    When can employees start using their annual leave? Thanks.

    Emily Kuhnert
    Admin
    11 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
    10 months ago

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

    Emily Kuhnert
    Admin
    10 months 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
    9 months 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
    9 months 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
    9 months 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.

    Leilane
    Leilane
    8 months ago
    Reply to  Joe

    I am brazilian. It is true. Employers can suspend the contract, this means to suspend the payment AND the work. This NOT means that people will work for free.

    Joe
    Joe
    9 months 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
    9 months 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
    9 months 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
    9 months ago
    Reply to  Emily Kuhnert

    what about going to the Police?

    Emily Kuhnert
    Admin
    9 months 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.

    Paul
    Paul
    7 months ago

    Are employers obligated to cover employee transportation costs?

    Alex Margolin
    Admin
    7 months ago
    Reply to  Paul

    Hi Paul. Employers must either provide transportation to and from work each day or pay any employees’ transportation costs above 6% of the employee’s gross salary.

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