Overview

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

calendar icon Public holidays calendar

Taxes

Employer
28.80% - Social Security
8.50% - Severance Fund
4.95% - Pension Fund
Employee
7.65% - 11% - 28.80%
1.66% - Employment Insurance
4.95% - Pension Fund
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

Minimum Wage

General
Minimum wage is R$954 ($288.40) monthly.

Non Mandatory

Retirement
Typically, employees can contribute from 4% to 5% and companies match 100% of employee contributions up to 5%
Life And AD&D
Typically includes death of any cause, accidental death, & total disability of 24X the insured's monthly base salary. The minimum number of employees eligible for this kind of group insurance is 5.
Disability
Employees should provide the following benefit calculated based on the monthly base salary (MBS): * Death: 24X MBS * Accidential Death: 48X MBS * Total or partial Illness Disability: up to 24X MBS

VAT

General
17% standard rate.

Mandatory Benefits

Pension Fund
Also refered to as FGTS (Fund of Guarantee For The Time in Service). Employers contribute between 26.8% - 28.8% of workers salary. Employees contribute 8% of their wages up to BRL1,659.38. Employees contribute 9% for wages between BRL1,659.39 to BRL2,765.67; and 11% for BRL2,765.68 to BRL5,531.21. Contribution ceiling is at BRL5,531.31.
Social Security
Employers contribution is 28.8%, and Employee contribution is 11% with cap of BRL608.44. Funds are towards health insurance, group life insurance, accident insurance and unemployment insurance.
Vacation Bonus
Mandatory cash bonus equal to one-third of employee's monthly salary. Employees have the right to convert one third (approximately 33%) of their paid vacation (normally up to 10 days) to pay in lieu of vacation. Any unpaid vacation days do not roll over, and employers must pay it out at the end of the calendar year at double time rates.
Severance Pay
Employees are entitled severance payment which includes the balance of their wages, any holiday entitlement they didn’t use, 13th month salary and access to the funds from the Brazilian Government Severance Indemnity Fund Law. The employer contributes 8% of the employee's wages to this account. If the termination is with a cause, the employees do not have an access to the severance account.

Payroll

General
Salaries are paid on monthly basis on the last day of the month. Every year by 20th of December, employee is entitled to receive 13th salary payment, that could be considered as a Christmas Bonus. However, it is not paid as bonus, it’s paid as an additional payroll (13th), with its own taxes to be applied, withheld and paid, separated from regular payroll.