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Brazil 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Monday Feb-28 Shrove Monday
Tuesday Mar-1 Shrove Tuesday
Friday Apr-15 Good Friday
Thursday Apr-21 Tiradentes
Sunday May-1 Labor Day
Thursday Jun-16 Feast of Corpus Christi
Wednesday Sep-7 Independence Day
Wednesday Oct-12 Our Lady of Aparecida
Wednesday Nov-2 Day of the Dead
Tuesday Nov-15 Proclamation of the Republic
Sunday Dec-25 Christmas Day
Countrypedia

Brazil
Payroll and Benefits Guide

Last updated: Jan 13, 2022
Currency
Brazilian Real (BRL)
Payroll Frequency
Bi-Weekly
Employer Taxes
28.00% to 30.50%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For Brazil

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Overview

Capital
Brasilia
Currency
Brazilian Real (BRL)
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

20.00% to 22.50%

Social Security contributions (INSS) (Social security contributions due by the employer are calculated considering a flat rate of 20% or 22.5%, depending on the industry’s sector. In addition to the referred social security contribution, additional social charges are due by the employer, whose rate will depend on its economic activities)

8.00%

Employees Severance Indemnity Fund (FGTS)

28.00% to 30.50%

Employee

Employee Payroll Contributions

7.50%

Up to 1,212.00 BRL Social Security contribution, based on progressive rates up to a maximum contribution of BRL 828.38 per month

9.00%

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

12.00%

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

14.00%

3,641.04 to 7,087.22 Social Security, based on progressive rates up to a maximum contribution of BRL 828.38 per month

7.50% - 14.00% Total Employee Cost

Employee Income Tax

0.00%

Up to 22,846.76 BRL

7.50%

22,847.77 to 33,919.80 BRL

15.00%

33,919.81 to 45,012.62 BRL

22.50%

45,012.63 to 55,976.16 BRL

27.50%

55,976.17 and above

Minimum Wage

General

The National Minimum wage is 1,212 Brazilian reals.

Payroll

Payroll Cycle

The payroll cycle in Brazil is generally either bi-weekly or monthly and employees are paid on the 15th and 30th of each month.

13th Salary

In Brazil, a mandatory 13th-month salary payment is paid to the employees at the end of the year.

Employees who have worked for 12 months are entitled to receive the full payment, while those who have worked for part of the year will receive a payment proportional to the period worked.

The 13-month payment is made in two instalments; one in November, which corresponds to the six months worked up to that date (with no INSS deduction from or withholding taxation due), and the second instalment in December (INSS contribution and withholding tax are applied to this second instalment.)

Working Hours

General

Standard working hours within Brazil are 44 hours per week, 8 hours per day.

The maximum weekly and daily working hours can differ as stipulated in employment contract /collective bargaining agreements.

Overtime

All work more than the standard 44 hours a week is to be paid as overtime and is regulated by the employment contract/collective agreements etc.  In general, overtime maximum limits are set at 2 hours per day and paid at 150.00% of the standard salary rate.

Work on a holiday is paid at the rate of up to 200.00% of the regular pay.

Working Week

Monday-Friday

Leave

Paid Time Off

Paid leave in Brazil is set in the employment contract as a minimum of 30 days paid holiday a year (following completion of 1-year service) in addition to public holidays.

The leave is calculated as a monthly salary plus an additional bonus of one-third of the monthly salary and must be paid two business days before the start date of the leave.

The Labor Reform allows the split of the paid leave period, where the employee can take the leave in up to three periods, one of which cannot be less than 14 days and the others cannot be less than five days each.

Public Holidays

There are 13 national holidays.  Other additional holidays may apply depending on the region.

Sick Days

All employees are entitled to paid sick leave and must provide a medical certificate within 48 hours of the first day of sickness.

The employer pays the sick pay for the first 15 days (at a rate of 100.00% of the usual salary rate), then by the Social Security (INSS) as a benefit payment to the employee. However, the benefit does not correspond to the actual salary; it is a specific INSS based calculation based on contributions made and capped at approximately 6,100.00 BRL.

Maternity Leave

All female employees are eligible for maternity benefits, including when adopting a child. The maternity benefit will be paid to the employee for 120 days and is paid by INSS, the Brazilian social security agency. The employer can extend the maternity period to 180 days if enrolled in the government scheme (Empresea Cidada).

Paternity Leave

The father is entitled to mandatory paid paternity leave of 5 days, which the employer can extend to 20 days if enrolled in the Government Program called “Empresa Cidadãs, provided some requirements established by the government program are observed.

Parental Leave

There is no additional Parental leave in Brazil.

Other Leave

Employees are entitled to up to 5 consecutive days of paid leave for the bereavement of a family member.

Employees are also entitled to 30 days of paid leave per year to provide urgent and essential care to a family member younger than 12 years of age and 15 days for an older family member.

Employees are entitled to up to 3 consecutive days of paid leave after getting married.

Termination

Termination Process

The termination process is standard in Brazil, with notice periods required unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, disobedience, etc.). Lack of notice of termination must be in writing and sent to the relevant governmental authorities.

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 1-year service, the employer must provide 30 days’ notice. For employees with over one year of service, the employee 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 Brazil, 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. According to the local laws in Brazil, there are also time limits for making severance payments within ten days of the employee’s last day at work.

It is common for employees to be paid one month for every completed year of service (with a percentage contribution from the Employers Severance Fund (FGTS)).

Probation Period

Probation periods in Brazil for permanent employees are 90 days

VISA

VISA

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 Labour 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 Labour and Employment).

VAT

General

The commonly used standard rate of VAT ( ICMS ( Imposto Sobre Circulação de Mercadorias e Serviços)) in Brazil is 17.00%; however, these do 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

 

 

For details regarding hiring in Brazil without a local registered entity see our Brazilian PEO service

Version History

March 14, 2022
The National Minimum wage is now 1,212 Brazilian reals.
January 13, 2022
Employer payroll contributions updated
October 11, 2021
Bereavement leave changed to 5 days, was 2 days
January 1, 2021
Minimum wage increase from R $ 1,045 to R $ 1,100
Stay up to date on payroll & employment law changes

Questions & Answers

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Larissa C.
Larissa C.
1 year ago

What is an employee entitled to if he/she resigns?

CJ Alves
CJ Alves
1 year ago

When can employees start using their annual leave? Thanks.

Emily Kuhnert
Admin
1 year ago
Reply to  CJ Alves

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.

Leslie Banduch
Leslie Banduch
1 year ago

Are salary increase mandatory in Brazil? If so, what was the increase for 2021?

Emily Kuhnert
Admin
1 year ago
Reply to  Leslie Banduch

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.

Joe
Joe
1 year ago

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.

Emily Kuhnert
Admin
1 year ago
Reply to  Joe

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.

Joe
Joe
1 year ago
Reply to  Emily Kuhnert

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.

Leilane
Leilane
1 year ago
Reply to  Joe

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.

Joe
Joe
1 year ago

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.

Emily Kuhnert
Admin
1 year ago
Reply to  Joe

Hey Joe, it is best for your friend to seek out legal counsel, this is not something that we are able to advise on.

Joe
Joe
1 year ago
Reply to  Emily Kuhnert

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?

Joe
Joe
1 year ago
Reply to  Emily Kuhnert

what about going to the Police?

Emily Kuhnert
Admin
1 year ago
Reply to  Joe

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.

Paul
Paul
1 year ago

Are employers obligated to cover employee transportation costs?

Admin
1 year ago
Reply to  Paul

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.

Sarah Smogoleski
8 months ago

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?

Emily Kuhnert
Admin
8 months ago

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.

Joao
Joao
6 months ago

What/Who pays the government?

Joao
Joao
6 months ago
Reply to  Erez Greenberg

Who pays the salaries of the people working for the government?
I thought the 1st question was clear enough

Gustavo
Gustavo
4 months ago

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!

Janet
Janet
3 months ago

When discussing salary in Brazil is it usually inclusive or exclusive of the 13th month bonus?

Janet
Janet
3 months ago
Reply to  Erez Greenberg

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?

Francisco James
Francisco James
2 months ago

are all restaurants registered with ftgs in Brazil with basic benefits??

Niki
Niki
2 months ago

Can you give someone a promotion in brazil without increasing their salary immediately?

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