Overview

Capital
Brasilia
Currency
Brazilian Real
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

20.00%
Social Security (INSS)
7.93%
Social Security on 13th and Vacation
8.00%
Time and Service Guarantee Fund u00a0(FGTS)
4.0%
Fine Provision for Termination
3.3%
NCRA / SEST / SEBRAE / SENAT
2.5%
Education salary
3.0%
Occupational accident insurance (SAT)
8.33%
13th salary
11.11%
Holidays
68.17% Total Employment Cost
Employee

Employee Payroll Taxes

8% - 11%
Social Security (Contributions for Private Sector Until February 29, 2020)
7.5% - 14%
Contributions for Private Sector beginning March 2020

Employee Payroll Taxes

0.00%
Up to 1,903.98
7.50%
1,903.98 - 2,826.65
15.00%
2,826.65 - 3,751.05
22.50%
3,751.06 - 4,664.68
27.50%
Over 4,664.68
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
Uruguay
Belarus
Brazil
Cambodia
South Africa
Georgia
66.17%
34.12%
34%
66.17%
2.1%
2%
2%

Minimum Wage

General

The National Minimum wage is 1,039 Brazilian reals.

Minimum wage will rise to 1,045 Brazilian reals in February 2020.

Minimum wage (per month)
$2391
$2255.28
$1996
$193
$22
$7.25
$2.33
Luxembourg
Italy
Australia
Brazil
Uzbekistan
Federal
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Salaries are paid on monthly basis by the fifth of the following month. After 12 months of continuous employment the employee is entitled to a 13th month salary. This payment is 1/12th of their salary. It can be paid in one instalment before November 30th or or in two instalments (one between February 1 and November 30 and the other until December 20). 

Working Hours

General

A typical workday is 8 hours long. Work should not exceed 44 weekly hours or 220 monthly hours.

Overtime

Overtime work during a regular workweek is compensated with an additional 50%, or an additional 100% for overtime worked during holiday. The rate of overtime pay can be increased in the collective labor agreement.

Payroll Contributions

13th Salary

After 12 months of continuous employment the employee is entitled to a 13th month salary. This payment is 1/12th of their salary. It can be paid in one instalment before November 30th or or in two instalments (one between February 1 and November 30 and the other until December 20). 

Leave

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Austria
Brazil
Georgia
Brazil
Malaysia
Shanghai
Federal
30
13
43
30
13
43
24
17
41
30
13
43
8
6
14
11
11
10
10
Maternity Leave

Female employees are entitled to 120 days (around 17 weeks) 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 (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 5 days leave and may be extended to 20 days in the collective bargaining agreement.

Parental Leave

No specific laws.

Termination

Termination Process

Termination requires a notice period, and a pre-notice period in some instances.  

Notice Period

The standard notice period is thirty days plus three days for each year of employment. The maximum notice period is 90 days.

Severance Pay

Employers contribute 8% to the Severance Fund (FGTS).  

For resignation or mutual agreement, employees are entitled to:

  • Christmas bonus – 1/12 compensation per month of work during the calendar year.
  • Payment for vacations not taken plus 1/3 bonus
  • 30% of the FGTS penalty. 20% due to employee and 10% to the government.

For termination without cause:

All of the above is due but 50% of the FGTS penalty is due; 40% to the employee and 10% to the government.

VAT

General

17% standard rate.

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