Brazil is the largest country in South America and the fifth largest country in the world by both land area and population.
Payroll and Benefits Guide - Brazil
Fun Facts
Brazil has the largest Japanese population outside of Japan, settling in the country as early as the 20th century.
Brazil is a leading producer of renewable energy and is known for its extensive use of biofuels.
Home to the Amazon Rainforest.
Brazil has the world’s longest beach, Praia do Cassino.
Brazil has won the FIFA World Cup for five times already.
Contributions
Employee Payroll Tax
| Up to 1,212.00 BRL Social Security contribution, based on progressive rates up to a maximum contribution of BRL 828.38 per month | 7.50% |
| 1,212.01 BRL to 2,427.35 BRL Social Security contribution, based on progressive rates up to a maximum contribution of BRL 828.38 per month | 9.00% |
| 2,427.36 BRL to 3,641.03 BRL Social Security contribution, based on progressive rates up to a maximum contribution of BRL 828.38 per month | 12.00% |
| 3,641.04 to 7,087.22 Social Security, based on progressive rates up to a maximum contribution of BRL 828.38 per month | 14.00% |
Employer Payroll Tax
| Social Security contributions (INSS) | 20.00% to 22.50% |
| Employees Severance Indemnity Fund (FGTS) | 8.00% |
Payroll
Payroll Cycle
In Brazil, the typical payroll cycle is either biweekly or monthly.
13th Salary
Brazilian employers are required to pay their employees a 13th month’s salary at the end of each year.
Work Hours and Week
In Brazil, a typical workweek is 44 hours long, or 8 hours each day.
Overtime
All work that exceeds the standard 44 hours per week and requires payment as overtime is governed by the employment contract, collective agreements, and other agreements, among other things.
Leave
Paid Time Off
According to the employment contract and labor law, employees are entitled to 20 working days of paid annual leave, but not more than 30 working days.
Public Holidays
There are 21 public holidays.
Sick Days
Every sick day is paid. Employers are responsible for covering the first month of sick leave; after that, Social Security takes over. Even if the sick leave was only for one day, a sick note must be given as soon as possible as proof of illness.
Maternity Leave
Employees who are pregnant are typically entitled to a minimum of five days of maternity leave, up to a maximum of twelve months.
Paternity Leave
The employer must grant the father a minimum of 5 days of paid paternity leave, but may grant up to 20 days.
Parental Leave
There is no additional parental leave in Brazil.
Termination
Termination Process
Brazil follows the usual termination procedure, with notice periods necessary unless an employer can demonstrate good cause for removal without notice.
Notice Period
In Brazil, notice periods are mentioned in the employment contract or collective bargaining agreement and are related to the reason for termination and the employee’s tenure.
Severance Pay
Employees who are let go without cause are entitled to severance pay that is equal to 40% of their remaining Unemployment Guarantee Fund balance.
Probation Period
Probation Period
The probationary period varies between 45 to 90 days.
Immigration
Any foreigners coming to work in Brazil need a residence permit (either temporary or permanent) and a work visa (Autorizaçao de Trabalho).
VAT
The commonly used standard rate of VAT in Brazil is 17.00%