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 :
213.99 million (2021 est.)
Minimum wage 2022 :
BRL 1,212 Monthly
Cost of Living index :
$ (112 of 139 countries)
Payroll Frequency :
Biweekly
VAT - standard rate :
17-20%
GDP - real growth rate :
4.6% (2021 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 1
Universal Confraternization / New Year’s Day
National holiday
February 28
Carnival
Optional - Movable
March 1
Carnival
Optional - Movable
April 15
Good Friday
Optional - Movable - Friday before Easter
April 21
Tiradentes' Day
National holiday - Movable
May 1
Labor Day
National holiday
June 16
Corpus Christi
Optional - Movable
September 7
Independence Day
National holiday
October 12
Our Lady of Aparecida
National holiday
November 2
All Souls' Day
National holiday
November 15
Republic Day
National holiday
November 20
Black Consciousness Day
Rio De Janeiro only
December 25
Christmas Day
National holiday

Contract Sharing Time


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.

What You Need To Know


  • A 13th salary is mandatory and is paid in two parts. The first part is paid between February and November 30th of each year. The second part must be paid by December 20th. 
  • The provision of services in the form of telework must be expressly included in the individual employment contract, which will specify the activities to be carried out by the employee.

Labor Conditions


Working Hours

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.

 

Overtime

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.

 

Probation Period

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.

Termination Notice Period

Termination of the employment agreement initiated by the employer:

DurationNotice
Up to 1 year of employment30 days’ notice
Over 1 year of employment30 days’ notice + 3 additional days for each year worked (up to a maximum of 60 additional days)

Termination initiated by the employee:

  • The employee must give 30 days’ notice;
  • If the termination is initiated during the probation period, the employee may request to be released earlier than 30 days.

Termination under mutual consent:

  • The notice period is halved.

 

Leave / Time Off

Annual Leave

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:

  • The annual leave must be taken within 10 months after it accrues;
  • The 30 days can be split into three periods, with one being at least 14 days;
  • No period of leave can be less than five days;
  • The employee can opt to take only 20 of the 30 days, plus 10 days of additional salary. The 20 days can be split into two periods of 14 and six days.

Sick Leave

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.

Parental Leave

There are no provisions in the law regarding parental leave other than maternity leave and paternity leave.

 

Maternity 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.

 

Paternity Leave

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.

 

Adoption Leave

The employee is entitled to the same maternity and paternity rights as a natural parent.

Other Types of Paid Leave

The following absences from work are considered justifiable and with pay:

  • Bereavement: Up to two consecutive days due to the death of a spouse, parent, child, sibling, or a person that is, according to the data included in the Employment and Social Security Book, a dependant of the employee;
  • Marriage: Up to three consecutive days due to the employee’s marriage;
  • Childbirth: Five days during the first week following the birth of a child;
  • Voluntary Work: One day every 12 months for the purpose of voluntary blood donation – proof of the donation is required;
  • Election Registration: Up to two days, not necessarily consecutive, in order to register as an elector according to the respective legislation;
  • Military Service: During the period when the employee is required to present themselves for Military Service;
  • Examinations: During the day the employee can prove that they are performing a test in order to enter a higher education establishment;
  • Tribunal Appearance: For the necessary period if the employee is answering before a tribunal;
  • Childbirth: During the compulsory absence of the female employee due to childbirth or a non-criminal abortion, having fulfilled the requirements for receiving the motherhood-salary from the Social Security Services;
  • Work-related Accident: Due to a work-related accident or illness verified by the National Social Security Institute. 

Unpaid Leave

Periods of absence that are not considered justifiable are classified as unpaid leave. There is no entitlement to unpaid leave.

Statutory Benefits

Employer contribution to social security is in the form of four taxes as shown in the table below:

Employer’s Social Security Taxes
TaxContribution level
Social Security20% (+ 2.5% if financial institution)
Working Accident Contribution1% – 3%
Guaranteed Fund for Length of Service (GFTS)8%
Other Entities Contributions5.8%

 

Health Insurance

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%. 

Other Insurances

Accident Insurance

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:

  • Death allowance
  • Accident allowance
  • Disease allowance
  • Imprisonment allowance
Unemployment Insurance

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.

Public Pension

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.

Other Statutory Benefits

Family Allowance (Salário-família)

 

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 BRL 1,364.43 (2019).

Prisoner’s Dependents Pension (Auxílio-reclusão)

 

This allowance is paid to eligible dependents if the insured is imprisoned and had a monthly income up to BRL 1,364.43 immediately before imprisonment and has at least 24 months of contributions.

Both allowances are made from the social security contirbutions.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

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