Brazil, officially the Federative Republic of Brazil, is the largest country in South America (by both population and geographical size). The federation is composed of the union of the 26 states and the Federal District. It is the largest country to have Portuguese as an official language and the only one in the Americas. Brazil is also one of the most multicultural and ethnically diverse nations due to over a century of mass immigration from around the world. It is the most populous Roman Catholic-majority country and the ninth-largest economy in the world. The leading employing sector is services, followed by industry, and agriculture. Brazil has advanced industries in the fields of petroleum processing, automotive, cement, iron and steel production, chemical production, and aerospace.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Brazil.
Capital : Brasilia | Currency : Brazilian Real (BRL, R$) | Languages spoken : Portuguese |
Population : 215.31 million (2022 est.) | Minimum wage 2023 : R$ 1,320 Monthly | Cost of Living index : $ (112 of 139 countries) |
Payroll Frequency : Biweekly | VAT - standard rate : 17-20% | GDP - real growth rate : 2.9% (2022 est.) |
The national holidays mentioned below are valid for the year 2023.
The approximate time for sharing the contract with an employee in Brazil is 10 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
A full-time employee can work for 44 hours per week or eight hours per day. The starting and the end time of the daily work period depend on contractual provisions. An hour’s rest period is required for employees who work more than six hours per day.
In case that work has to be interrupted due to accidents or force majeure, working time may be extended by two hours during the days required to make up the lost time, but not exceeding 10 hours per day, and not exceeding 45 days per year. Such work is subject to prior authorization of the competent authority. Overtime is limited to up to two hours per day. Overtime is paid at the rate of at least 50% more than the regular pay.
The probation period is for a period of up to 90 days and can be renewed once. If an employee works beyond the probation period, the contract is automatically deemed to be for an indefinite period. However, for the purposes of determining compensation for unjustified dismissal, the first year of a contract of an unspecified duration is deemed to be a trial period and any worker who has not completed such period would not be entitled to compensation.
The probation period does not apply to fixed term employment contracts.
Termination of the employment agreement initiated by the employer:
| Duration | Notice |
| Up to 1 year of employment | 30 days’ notice |
| Over 1 year of employment | 30 days’ notice + 3 additional days for each year worked (up to a maximum of 60 additional days) |
Termination initiated by the employee:
Termination under mutual consent:
In Brazil, an employee is entitled to 30 days of annual leave, but only after they have completed 12 months of work for the employer.
The rules for annual leave are:
An employee has the right to paid time off in the event of illness or injury, provided that they give a medical certificate stating the number of absent days. For the first 15 days of illness, the employer pays 100% of the employee’s salary. From the 16th day onward, Social Security pays for the leave and is capped at approximately BRL 6,100.
There are no provisions in the law regarding parental leave other than maternity leave and paternity leave.
Female employees are entitled to 120 days of paid maternity leave and extension by a maximum of four weeks on medical grounds (two weeks prior to birth and two weeks after birth). Maternity leave is paid at 100% by the INSS, the Brazilian social security agency, however, the employer can claim payment back through deductions on social security payments. If the employer is enrolled in the government scheme (Empresa Cidada), maternity leave can be extended to a total of 180 days.
An employee is entitled to five days paid paternity leave and is paid by the employer. If the employer is enrolled in the government scheme (Empresa Cidada), paternity leave can be extended to 20 days.
The employee is entitled to the same maternity and paternity rights as a natural parent.
The following absences from work are considered justifiable and with pay:
Periods of absence that are not considered justifiable are classified as unpaid leave. There is no entitlement to unpaid leave.
The monthly employer cost comprises of the following contributions:
Encargos Sociais | Rate |
INSS (Social Security Contribution – Employer) | 20% |
SAT (Work accident insurance) | 1% |
SNA (National Service of Learning) | 2.5% |
INCRA/SENAI/SESI/SEBRAE (Third parties engaged in social development activities) | 3.30% |
FGTS (Employees’ Severance Indemnity Fund) | 8% |
Total | 34.8% |
Company Taxes | Rate |
PIS (Program of Social Integration) | 1.65% |
COFINS (Contribution for the Financing of Social Security) | 7.60% |
IRPJ (Corporate Income Tax) | 1.2% |
CSLL (Social Contribution From Legal Entities) | 1.08% |
ISS (Municipal Service Tax) | 5% |
Total | 16.53% |
The healthcare system in Brazil (Sistema Único de Saúde, SUS) is made up of both private and government institutions. Brazil’s decentralized, universal public health system is funded with tax revenues and contributions from federal, state, and municipal governments. According to the Federal Constitution, municipalities are required to allocate 15% of what they collect to health actions. For state governments, this percentage is 12%.
The social security authority provides the following insurances to workers who have contributed to the system, which will depend on the number of contributions made and on the amounts involved in each contribution. The main insurances provided by the social security authority are:
Unemployment benefit is available in Brazil and managed by the Worker Assistance Fund Advisory Council of the Ministry of Labor and Employment. To be eligible, an employee must have worked consecutively for at least six months before unemployment, not necessarily with the same employer, and should not be receiving income that is sufficient to support them and any dependents.
The General System of Social Security is, in reality, social security insurance. All employees performing paid activities must be registered with the System, except when it is an optional condition. When paying the social security contribution, the person is classified as a ‘covered employee’ and is guaranteed social security coverage.
Age pension (Aposentadoria por idade) mandates the minimum retirement age to be 65 for men and 62 for women. Employment may continue.
This allowance is paid for children younger than age 14. The parents are required to present annual proof of vaccinations for children up to age six and proof of school attendance each semester from age seven. The parents must be currently in covered employment or receive an age pension; a length of contribution pension; a disability pension; or a length of contribution pension for persons with disabilities and be aged 65 or older (men) or aged 60 or older (women). The family allowance is paid to both parents if both are insured. The insured’s monthly income must not exceed a prescribed limit.
This allowance is paid to eligible dependents if the insured is imprisoned and had a monthly income up to the prescribed limit immediately before imprisonment and has at least 24 months of contributions.
Both allowances are made from social security contributions.
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