Payroll and Benefits Guide Brazil
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
20.00% to 26.80%
|
Social Security (INSS) |
|
1, 2, or 3%
|
Work Accident Insurance (RAT/SAT). 1% = Low risk, 2% = Medium risk, 3% = High risk. |
|
8.00%
|
Employees Severance Indemnity Fund (FGTS)
|
|
0.2 – 5.8%
|
Terceiros (3rd party institution), applied on income up to 338,880 BRL annually.
|
|
2.75%
|
Vacation Bonus
|
|
31.95 – 46.35%
|
Total Employment Cost
|
| Collective Bargaining Agreement (CBA) |
The majority of companies are subject to a CBA which require additional benefits to be given to workers including those listed below
|
|
20-50 BRL per working day
|
Meal Vouchers
|
| 163.83 BRL per month | Grocery Vouchers (mandatory in some CBAs and for lower income) |
|
~ 350 BRL per month
|
Transportation vouchers (sum will vary according to transportation distance)
|
| Employee Payroll Contributions | |
|
7.50%
|
Up to 1,518.00 BRL Social Security contribution
|
|
9.00%
|
1,518.01 BRL to 2,793.88 BRL Social Security contribution
|
|
12.00%
|
2,793.88 BRL to 4,190.83 BRL Social Security contribution
|
|
14.00%
|
4,190.83 to 8,157.41 BRL Social Security contribution
|
| 7.50% – 14.00% | Total Employee Cost |
| Employee Income Tax | |
|
0.00%
|
Up to 27,110.40 BRL annually |
|
7.50%
|
27,110.41 – 33,919.81 BRL annually |
|
15.00%
|
33,919.81 to 45,012.60 BRL annually |
|
22.50%
|
45,012.60 to 55,976.16 BRL annually |
| 27.50% | 55,976.16 and above annually |
| 25% | Flat rate for Non-residents, taxed exclusively at source on their Brazilian-sourced income. |
Employer taxes
Employee taxes
Minimum Wage
General
The national minimum wage is 1,621 Brazilian reals monthly.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
There are two payroll cycle options: monthly and bi-weekly.
The workers are paid either once per month in full, or they receive a 40% advance, with the remaining balance paid subsequently
Regardless of the cycle, pay dates must adhere to collective bargaining agreements and be paid by the fifth business day of the following month. If an employee works on Saturdays, these days must be considered as business days by the employer.
Here’s an example for clarity:
- If the payment is on the 5th, the advance should be paid on the 20th.
- If the payment is on the 30th, the advance should be paid on the 15th.
Among these, the monthly cycle is more commonly used.
13th Salary
In Brazil, employees receive a mandatory 13th-month salary payment at the end of the year, often referred to as the Christmas bonus. Full payment is given to employees who have worked for the entire 12 months. However, those who have worked for a portion of the year will receive a payment proportional to their period of employment.
This 13th-month payment is typically made in two installments. The first installment, which corresponds to the six months of work up to that point, is due by November 30th. This payment is exempt from mandatory deductions.
The second installment is due by December 20th and is subject to INSS contributions and withholding tax.
If an employer chooses to make the 13th-month payment in a single installment, it must be paid by November 30th. It’s important to note that collective bargaining agreements take precedence over individual employment agreements.
Authority Payments
|
Authority Payment |
Paid To |
Due Date |
|
Income Tax (IRRF) |
IRRF |
20th of the following month |
|
Social Security (INSS) |
INSS |
20th of the following month |
|
Guarentee Fund (FGTS) |
FGTS |
7th of the following month |
Working Hours
General
Standard working hours within Brazil are 44 hours per week, 8 hours per day. This is typically spread over 5 working days, from Monday to Friday, or 6 working days (8 hours a day from Monday to Friday and 4 hours on Saturdays).
Employers must provide meals break of 15 minutes for 4 to 6 hour workday shifts, and 1 hour break for over 6 hours of workday shifts.
The maximum weekly and daily working hours can differ as stipulated in employment contract/collective bargaining agreements.
Overtime
- Maximum Ordinary Hours: The standard work limit is 8 hours per day and 44 hours per week. Any hour worked beyond this is considered overtime (horas extras).
- Maximum Daily Overtime: Overtime is limited to a maximum of 2 additional hours per day, resulting in a maximum total workday of 10 hours.
- Agreement Required: Overtime must be agreed upon by the employer and employee, either through an individual written agreement or a Collective Bargaining Agreement (CBA).
- Exemptions: Employees in roles of high trust (managers, executives) or those who work remotely/externally with hours that are genuinely untraceable are typically exempt from working hours control and are not entitled to overtime pay (CLT Article 62).
Mandatory Overtime Pay Rates
The CLT sets the non-negotiable minimum premium rates, which escalate significantly for rest days and night work.
| Day/Condition | Minimum Premium Rate (Statutory) | Total Pay Rate | Notes |
| Normal Overtime (Working Days) | +50% of the regular hourly wage. | 150% | Applies to hours worked beyond the 8-hour daily or 44-hour weekly limit. |
| Weekly Rest Days & Public Holidays | +100% of the regular hourly wage. | 200% | This premium is mandatory for work performed on the employee’s legally mandated paid weekly rest day (preferably Sunday) or a statutory public holiday. |
| Night Work Premium | +20% of the regular hourly wage. | 120% | This premium is paid for work performed between 10:00 PM and 5:00 AM and is cumulative with the overtime premium. |
Example of Combined Rate: Overtime worked at night (10:00 PM to 5:00 AM) on a weekday is paid at a premium of 70% (50% for overtime + 20% for night premium), resulting in a total pay rate of 170%.
Compensation Methods
- Bank of Hours (Banco de Horas): Employers may utilize a bank of hours system, where extra hours worked are compensated with equivalent time off instead of monetary payment.
- This system generally requires a Collective Bargaining Agreement to operate, or an individual agreement that limits the compensation period to six months.
- The total number of credited hours must be compensated with time off within the agreed period.
Leave
Annual Leave (vacation)
In Brazil, paid vacation is stipulated in the employment contract. Employees are entitled to a minimum of 30 calendar days of paid holiday per year, following the completion of one year of service. In addition to public holidays, employees accrue 2.5 working days per month.
The vacation pay is calculated based on one monthly salary plus a bonus of one-third of the monthly salary. This amount is paid two business days before the start date of the leave.
The Labor Reform permits the division of the paid leave period. Employees can take their leave in up to three periods, with one period being no less than 14 days and the remaining periods being no less than five days each.
Vacations cannot commence two days before a public holiday. Employees must receive at least 30 days’ notice before the first day of their holiday.
Once an employee becomes eligible for annual leave, which is after 12 months of employment, they must use it and cannot combine it with the next annual leave. This means that once an employee completes their first work anniversary, they have up to 11 months to use the annual leave before reaching their second work anniversary.
It’s important for the company to check the collective bargaining agreement and ensure it aligns with the employee’s request.
Paid time off
In Brazil, statutory vacation does not freely carry over. Leave must be taken within the 12-month concessive period after it’s earned. Carryover is only allowed in exceptional cases (e.g., business necessity), and accumulation beyond two periods is not permitted. Employers cannot delete accrued statutory vacation, and unused leave must be paid out on termination.
Note:
- SGF Global Brazil does not allow for PTO carryover
- Papaya Direct in Brazil allows that, after one year of employment, an employee is entitled to 30 days of paid vacation. An employee will carryover any unused PTO.
Public Holidays
In Brazil, local holidays are observed in addition to the national holidays listed below. These local holidays are optional for employers to grant as time off for their employees. Furthermore, employers have the discretion to designate these holidays as paid or unpaid leave. Public holidays falling on weekends are usually lost.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | Universal Brotherhood / New Year’s Day | Standard holiday |
| 16 February 2026 | Monday | Carnival | |
| 17 February 2026 | Tuesday | Carnival | |
| 18 February 2026 | Wednesday | Ash Wednesday (Half-Day) | |
| 3 April 2026 | Friday | Good Friday / Passion of Christ | Standard holiday |
| 21 April 2026 | Tuesday | Tiradentes’ Day | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | |
| 7 September 2026 | Monday | Independence Day | Standard holiday |
| 12 October 2026 | Monday | Our Lady of Aparecida (Patroness of Brazil) | Standard holiday |
| 2 November 2026 | Monday | All Souls’ Day | Standard holiday |
| 15 November 2026 | Sunday | Proclamation of the Republic | Standard holiday |
| 20 November 2026 | Friday | National Day of Zumbi and Black Consciousness | Standard holiday |
| 24 December 2026 | Thursday | Christmas Eve (Half-Day) | |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 31 December 2026 | Thursday | New Year’s Eve (Half-Day) |
Sick Days
All employees are entitled to paid sick leave. The employer pays the first 15 days of absence; from day 16, benefits may be paid by INSS, subject to approval. INSS sick pay is calculated using INSS contribution rules and is capped by the INSS ceiling (BRL 8,157.41 for 2025).
Employees must provide a medical certificate as required by the employer’s policy or applicable collective rules. During the first 15 days paid by the employer, normal payroll obligations remain applicable.
Maternity Leave
All female employees, including those adopting a child, are eligible for maternity benefits. The INSS (Social Security Agency) will provide these benefits for a duration of 120 days, during which the employee’s job is secure and cannot be terminated. The employer is obligated to pay the employee’s salary, which will be reimbursed by the INSS at a later date.
If the employer is enrolled in the government scheme (Empresa Cidada), the maternity leave period can be extended to 180 days. Throughout the maternity leave, the employer will continue to make social contributions on behalf of the employee. Furthermore, the employee will continue to accrue annual leave, receive the 13th salary, and their job security is ensured.
Maternity leave can commence anytime from the 8th month of pregnancy. CLT employees are required to submit a request, along with a doctor’s notice, to the HR department. The HR department is then responsible for notifying the INSS of the request.
Paternity Leave
Fathers are entitled to a mandatory paid paternity leave of 5 consecutive days following the birth or adoption of a child. If the employer is enrolled in the government program (Empresa Cidada), and meets certain requirements established by this program, the paternity leave can be extended to 20 consecutive days.
Parental Leave
There is no additional parental leave in Brazil.
Other Leave
- Bereavement Leave: Employees are entitled to up to 2 consecutive days of paid leave following the death of a direct family member (spouse, ascendant, descendant or sibling). The employee must provide the death certificate (or any other supporting document).
- Marriage Leave: Employees are entitled to up to 3 consecutive days of paid leave after getting married. The common practice is that employees must notify the HR department 30 days in advance.
- Blood Donation (Voluntary): Employees that make voluntary blood donations are entitled to one day of paid leave every 12 months. The employee must provide the medical/facility certificate (or any other supporting document).
- Electoral Service (Mesario): If the employee is summoned to work on election days (typically fall on Sundays), the employee is entitled to 2 days of paid leave (consecutive or not). The employee must provide the summoned letter to the HR department.
- Court Hearings (Juri Popular): Some employees can be summoned to attend jury trial cases focused exclusively on specific crimes against life. Employers cannot deduct the salary from employees who were absent from work due to jury duty. The employee must provide the summoned letter to the HR department.
- Medical Appointment Leave for a Child: Workers are entitled to 1 day per year to take their child up to 6 years of age to the doctor. A medical certificate must be provided as proof of appointment.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
A Performance Improvement Plan (PIP) is a formal, documented process used by employers to address an employee’s performance issues. It typically sets clear expectations, measurable goals, timelines, and follow-up feedback to give the employee an opportunity to improve.
In Brazil, termination usually requires notice and severance unless the employee is dismissed for just cause, which applies only to legally defined misconduct (e.g., insubordination, repeated negligence, serious breaches).
A PIP can support performance management but just cause based only on low performance is highly contested in labor courts. For that reason, many employers terminate without just cause (with severance) for performance issues unless there is clear misconduct such as negligence or insubordination.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Monthly salaries must be paid by the 5th business day of the month following the work month. | Under the Consolidation of Labour Laws (CLT) Art. 477: All termination-payments (wages owed, vacation, 13th salary etc.) should be paid within 10 calendar days after termination (or after notice period ends) when dismissal without cause. | Salaries may be paid by bank deposit, cash or cheque, so long as payment is documented; there is no universal statute that mandates only bank-account payment for all employees. |
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 one year of service, the employer must provide 30 days’ notice. For employees with over one year of service, the employer 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 case of termination without cause, the employee is entitled to severance, amounting to the equivalent of 40 percent of the balance in the employee’s Unemployment Guarantee Fund (Fundo de Garantia por Tempo de Serviço or FGTS), accrued during the employment relationship.
Additional payments will be due, such as one month’s salary if the termination takes place in the 30 days before the expected date of the collective bargaining agreement for the following period; payout of accrued vacation plus 1/3 vacation bonus; pro-rated 13 months’ pay; and other payments required by the applicable collective bargaining agreement or contract. In case of termination with cause, accrued unused vacation plus vacation bonus and other payments required by the applicable collective bargaining agreement or contract are still required, but there will be no FGTS payout or an additional one month’s salary. In case of termination by mutual agreement, the company must pay half of the notice and 20 percent of the FGTS balance, as opposed to 40 percent when the termination is on the company’s initiative. The employee will be allowed to withdraw 80 percent of the balance of the FGTS fund, as opposed to 100 percent when the termination is on the company’s initiative, but they are not entitled to unemployment benefits in this type of termination.
Termination Summary
| Termination Reason | Duration of Employment | Notice Period | Entitlement to: |
| Without Just Cause | Less than 1 year | 30 days |
|
| Above 1 year | An additional 3 days notice is added for each year of service up to a maximum of 90 days | ||
| Just Cause | Indifferent | Not require/Not applicable |
|
| Mutual Agreement | Indifferent | Not require/Not applicable |
|
| Employee Resignation | Indifferent | 30 days |
|
Probation Period
The probation period in Brazil for Indefinite employees is set to 45 days with the ability to extend to a maximum period of 90 days in total.
Employers can terminate employment at the end of the probationary period and must pay final compensation, including unused vacation pay and proportional 13th-month salary. The details of the probation period should be documented in the employment contract.
Minimal Statutory Termination Costs
Notice Period after 1 year: 30 days
If the termination is without just cause, the employer must pay the following:
Prior notice (30 days, plus 3 days per year of service, up to 90 days total), or payment in lieu
FGTS (Fundo de Garantia do Tempo de Serviço):
Additional 40% penalty on the FGTS balance upon dismissal without cause.
Accrued vacation pay (including the 1/3 vacation bonus)
13th salary (pro rata)
Unemployment insurance eligibility (if requirements are met)
Setting Up a Business
Setting up a legal entity
A. Register the company with the State Board of Commerce (Junta Commercial) or the National Companies Registry Office (Cartório de Registro de Pessoa Jurídica).
This can be done by submitting documentation which varies by state. However, the most common requirements are the personal documents of each partner, if the company has partners, and articles of incorporation. These should clearly define the interests of the parties, the objective of the company and the manner in which the shares or quotas will be integrated.
For the articles of incorporation to be valid, they must be checked by a lawyer. It is also recommended to verify if there is another company registered with the same name. Note that micro and small businesses are exempt from this requirement.
B. Place the company’s articles of incorporation on file. To do so you will need:
a. Articles of Incorporation or Requirement for an Individual Entrepreneur or Company Statute, in triplicate
b. Certified copy of the General Registrar number (RG) and Individual Tax Registration (CPF) of the proprietor or partners
c. Standard Application Form (Capa da Junta Comercial) in a single copy
d. National Registration Form (FCN), Model 1 and 2 in a single copy
e. Payment of fees by means of a bank payment slip (DARF)
Once the company is registered, the proprietor will receive the NIRE (Número de Identificação do Registro de Empresa) identification number and a label or stamp from the State Board of Commerce or the Registry Office.
C. This identification number can be used to obtain a National Company Registration number (CNPJ – Cadastro Nacional de Pessoa Jurídica). This identifies the company as a taxpayer with the Federal Government.
D. Obtain an operating license to allow the establishment and operation of the entity. Apply for this at the City Hall or Finance Secretary’s Office in the relevant Municipality. The documents required include:
• Form provided by the Municipality
• Approval of the address, through prior consultation
• Copy of the CNPJ
• Copy of the Articles of Incorporation
• Reports from regulatory organs, where necessary.
Registration with the State must be made with the State Department of Finance. Most States have an agreement with the Federal Tax Authorities that allows for State Inscription together with CNPJ registration in a single operation.
E. This is necessary to obtain registration for ICMS (Tax on the Circulation of Goods and Services). To do this, submit the following documents:
• Single Registration Document (DUC), in triplicate
• Supplementary Registration Document (DCC), single copy
• Proof of address of the partners, either certified copy or original document
• Certified copy of a document proving the right of tenancy of the registered address, for example the property lease or property deed
• Registration number of the accountant
• Proof of registration as a contributor to Tax on Services (ISS – Imposto Sobre Serviços) for service providers
• Simplified Certificate from the State Board of Commerce (for companies established for over three months)
• Copy of the articles of incorporation
• Copy of the CNPJ
• Copy of the license to operate
F. Once the license to operate has been granted, register with the Social Security Institute within 30 days from starting activities and request authorization from City Hall to print tax invoices and authenticate fiscal records. Companies operating in the industrial and commercial sectors or any sector in Brasilia should consult the State Finance Secretary.
For further information please visit https://www.jucesponline.sp.gov.br
Registration as an employer
Brazilian employers must have the Articles of Incorporation registered with the board of trade. The definition of Social Security contribution rates is directly dependent upon the tax registration that will define, among other things, the risk level of each legal entity. Companies are registered with the Income Tax Authority by means of a registry number (CNPJ) and no employees can be formally employed before a company is registered. In addition, companies that trade products must be registered at the relevant State Government (IE).
Companies that provide services must be registered with the relevant City Government (CCM). All employers must register with eSocial; this is part of the Brazilian government’s Public System for DigitalBookkeeping (SPED) initiative and was introduced in phases throughout 2018 and 2019. All companies in Brazil are required to submit employee labour, tax, social security, and payroll information to the Brazilian government via the eSocial platform.
Information that employers must report on eSocial includes: Withholding income tax, Contributions to Brazil’s unemployment compensation fund (FGTS), Unemployment insurance, Family allowance and Sickness, temporary and holiday leave.
For further information please visithttp://www.rais.gov.br/sitio/como_informar.jsf
Common Benefits
- Phone allowance – 50 to 100 USD per month
- Home office allowance – 70 to 120 USD per month
- Gas/auto allowance – typically 7% of the monthly salary depending on Collective Agreement terms.
- Gym & Wellness allowance – 100-200 USD per month
- Profit sharing (also known as PPR or PLR) is a common practice in large companies in Brazil
Immigration
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 Labor 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 Labor and Employment).
Remote Work
The Brazilian Government passed the working hours legislation applicable to remote workers including those remote workers on a hybrid set up, regular, permanent, or casual basis. This requires employers to implement an electronic timekeeping system (after approval by their relevant union) for employees working remotely.
Legislation and Collective Bargaining Agreements must also apply be applied to remote employees working outside of their employer’s jurisdiction (except if otherwise agreed by the parties).
Employers are not responsible for reimbursing expenses that a remote employee may incur to return to in-person work, when such teleworker chose to work in a location other than the one provided in their written teleworking agreement.
Employers are required to give priority to employees with disabilities and those with small children when allocating positions that can be performed remotely.
The teleworking regime should be expressly stipulated in the individual employment contracts. The teleworking regime applies to interns and apprentices on the same basis as regular employees, when expressly stipulated in their internship contract, and expressly agreed upon by the intern and the grantor and the educational institution.
Food allowances and vouchers paid by the employer to the remote employees must be only used for food purchases in restaurants or other commercial establishments.
VAT
General
The commonly used standard rate of VAT Imposto Sobre Circulação de Mercadorias e Serviços (ICMS) in Brazil is 17.00%; however, these 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.
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Payroll and Benefits Guide
in Brazil
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | Universal Brotherhood / New Year’s Day | Standard holiday |
| 16 February 2026 | Monday | Carnival | |
| 17 February 2026 | Tuesday | Carnival | |
| 18 February 2026 | Wednesday | Ash Wednesday (Half-Day) | |
| 3 April 2026 | Friday | Good Friday / Passion of Christ | Standard holiday |
| 21 April 2026 | Tuesday | Tiradentes’ Day | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | |
| 7 September 2026 | Monday | Independence Day | Standard holiday |
| 12 October 2026 | Monday | Our Lady of Aparecida (Patroness of Brazil) | Standard holiday |
| 2 November 2026 | Monday | All Souls’ Day | Standard holiday |
| 15 November 2026 | Sunday | Proclamation of the Republic | Standard holiday |
| 20 November 2026 | Friday | National Day of Zumbi and Black Consciousness | Standard holiday |
| 24 December 2026 | Thursday | Christmas Eve (Half-Day) | |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 31 December 2026 | Thursday | New Year’s Eve (Half-Day) |
What is an employee entitled to if he/she resigns?
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).
When can employees start using their annual leave? Thanks.
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.
Are salary increase mandatory in Brazil? If so, what was the increase for 2021?
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.
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.
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.
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.
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.
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.
Hey Joe, it is best for your friend to seek out legal counsel, this is not something that we are able to advise on.
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?
what about going to the Police?
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.
Are employers obligated to cover employee transportation costs?
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.
How common is it for employers in Brazil to offer supplemental medical coverage on top of SUS? Does it depend on the industry, employer size, etc?
Hi Sarah, thank you for your question. Private health insurance is one of the most common non-mandatory benefits that are offered to employees in Brazil and the amount usually will vary based on the employee’s role and responsibilities.
What/Who pays the government?
Can you please elaborate on what specific payment to the government you are referring to?
Who pays the salaries of the people working for the government?
I thought the 1st question was clear enough
The government pays the salaries of government workers.
How exactly is the payment done to employees in Brazil? For example, if an employer from outside is hiring an employee in Brazil, what are the options for this employee? Does he needs to start a company (have his own CNPJ) or does he get a choice to be hired as CLT?
I understand that if the employee have it’s own CNPJ, then all the taxes related to “Employer” category are not applicable, is that correct?
I’m asking this because I live in Brazil and I have a proposal from a US company that uses your platform.
Thank you!
It really depends on the company and the goal of the setup. You could choose to create your own local entity and hire workers directly, or you could hire independent contractors (where compliant), or you can use the EOR model. I recommend reviewing the Papaya Website https://www.papayaglobal.com/pricing/ to obtain more details regarding these options.
When discussing salary in Brazil is it usually inclusive or exclusive of the 13th month bonus?
The 13-month bonus is made in two installments and appears separately on a payslip. The first installment will appear on a payslip in November (with no INSS deduction from or withholding taxation due), and the second installment will show on the December payslip (INSS contribution and withholding tax are applied to this second installment). You can see an example of a Brazil payslip here.
Thank you, Erez. Sorry my question wasn’t very clear. I was wondering more so whether we should consider it as part of the salary or as a bonus. We have employees globally and only those in countries with statutory bonuses receive such bonuses. When comparing all global employees’ salaries to build an equitable compensation structure across countries, we’re not sure whether statutory bonuses should just be counted as salaries?
are all restaurants registered with ftgs in Brazil with basic benefits??
Could you please share more context, FTGS usually refers to severance fund allocation in Brazil.
Can you give someone a promotion in brazil without increasing their salary immediately?
Yes, since it depends on the effective date of the promotion and the cut-off dates to administer the promotion increase in payroll.
If someone is dismissed after 3-6 months are they still entitled to 30 days notice, severance pay and 13th salary?
Brazil generally stipulates notice periods within the employment contract/collective agreement based on the reason for termination and the employee’s length of service. The minimum notice period for both employers and employees is 30 days, and the amount of notice increases with the length of employment. 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.
Those who have worked for part of the year will receive a 13th payment proportional to the period worked.
Hi, if an employee as resigned, and the 10 day after his last day was Saturday, and I missed to pay him on Friday, is it possible to pay in Monday or I need to pay the extra salary?
Hello,
Under Brazilian labor law, an employer is required to pay an employee their final wages within 10 days after termination of their employment contract, this also includes resignation.
If the employer fails to pay the final wages within the 10- day, the employee may file a complaint with the Brazilian Ministry of labor, however we recommend to pay the salary as soon as possible and inform the worker promptly. For further advice, please contact a legal local advisor as further information on the nature of the resignation might be needed.
is the Advance payroll mandatory or can employee opt out?
The payroll cycle in Brazil is generally either bi-weekly or monthly, and employees are paid on the 15th and 30th of each month. Is this question related to salary? It might be that that due to a collective labor agreement there is an advanced mandatory payroll requirement.
Is it complex to move payroll providers in Brazil during the year?
It is always recommended to switch payroll provider by the end of the calendar year for a smooth transition.
If an employer provides employees gift cards as an award, is this taxable to the employee through payroll?
I am employed by a company in the United States that does have a global presence, including offices in Sao Paulo. I am a United States citizen and I am on a digital nomad visa working in Brazil. If I plan to stay longer than 6 months (184 days) am I required to pay taxes? Does my employer need to be informed and do they need to pay my taxes from income I am earning in the United States but living in Brazil? Or, can I continue to work in Brazil and pay taxes on my own? Any insight would be greatly appreciated. Thanks!
We cannot advise on individual visa or tax issues, we recommend seeking guidance from local tax experts that can advise you on your specific set up and requirements.