Payroll and Benefits Guide - Brazil

Brazil
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Currency

Brazilian Real
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Capital

Brasilia
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Employer Taxes

28% – 30.50%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Brazil is the largest country in South America and the fifth largest country in the world by both land area and population.

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.

Brazil

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 month7.50%
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 month9.00%
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 month12.00%
3,641.04 to 7,087.22 Social Security, based on progressive rates up to a maximum contribution of BRL 828.38 per month14.00%

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.
Brazil

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%