Guide to employment, payroll and benefits in

Brazil

Rivermate offers complete payroll, benefits and compliance services for

Brazil

01. Overview

Last updated: 

August 19, 2021

Currency
Brazilian Real
Capital
Brasileia
Ease of doing business
59.1
Language
Portuguese
Population
212559417
GDP growth
0.98%

02. Grow your team in

Brazil

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Brazil

, particularly if you don't have established local relationships. You can hire employees in

Brazil

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Brazil is the largest nation in both South and Latin America, formally known as the Federative Republic of Brazil. It has a population of over 211 million people and occupies an area of 8,515,767 square kilometers. Brazil, which is made up of 26 states and the Federal District, is the world's fifth-largest and sixth-most populous nation. It is the largest and only nation in the Americas to have Portuguese as an official language. Due to over a century of mass immigration from all over the world, Brazil is one of the world's most multicultural and ethnically diverse countries. It is also the most populous Roman Catholic-majority nation, with Braslia as the capital and SPaulo as the largest city. Brazil is bordered on the east by the Atlantic Ocean and has a 7,491-kilometer coastline. Except for Ecuador and Chile, it occupies nearly half of South America's landmass and borders all other countries on the continent. Its Amazon basin is home to a large tropical forest with a wide range of species, ecological systems, and natural resources spread across various protected habitats. Brazil is one of the seventeen megadiverse countries, and it is a source of considerable global concern, as environmental destruction, such as deforestation, has direct consequences for global issues such as climate change and biodiversity loss. Before the arrival in 1500 of explorer Pedro lvares Cabral, who claimed the region for the Portuguese Empire, Brazil was home to a number of tribal nations. It was a Portuguese colony until 1808, when the empire's capital was moved from Lisbon to Rio de Janeiro. When the United Kingdom of Portugal, Brazil, and the Algarves was formed in 1815, the colony was promoted to kingdom status. Brazil gained independence in 1822 when the Empire of Brazil was founded. The establishment of a bicameral assembly, now known as the National Congress, followed the adoption of the first constitution in 1824. Following a military coup d'état in 1889, the nation became a presidential republic. In 1964, an oppressive military junta took control and governed until 1985, when civilian rule was restored. Brazil is a regional power and a middle power in foreign relations, with a strong Human Development Index score. Its new constitution, drafted in 1988, describes it as a democratic federal republic. It is a newly developed nation with Latin America's largest share of global income. Brazil's economy is the world's thirteenth largest in terms of nominal GDP and eighth largest in terms of purchasing power parity. It has been the world's largest producer of coffee for the past 150 years, making it one of the world's biggest breadbaskets. The country is known as an emerging power as a result of its international recognition and influence.

04. Public holidays

05. Types of leave

Paid time off

Within 12 months of employment, an employee is entitled to 30 days of paid annual leave. The leave must be taken within the next twelve months.Leave will be taken three times, with one of the intervals being at least 14 days long and the other two being at least 5 days long.Two days before a holiday or weekend, annual leave cannot be obtained.Employees will trade in 1/3 of their yearly leave in exchange for a holiday bonus.

Public holidays

There are 13 national holidays in Brazil although some regions in the country may also impose local holidays.

Sick days

The employer bills the employee's entire wage for the first 15 days of sickness. Social protection begins to pay for the leave on the 16th day (up to 6,101 BRL)

Maternity leave

Female employers are entitled to 120 days of paid maternity leave, which can be extended for up to four weeks if medically necessary (two weeks prior and two weeks after birth). The employer must pay 100 percent of the daily salary during maternity leave; however, the employer may demand payment back via social security deductions.Maternity leave will be stretched to a period of 180 days if the contractor is registered in the government programme (Empresea Cidada).

Paternity leave

Paternity leave is compensated for five days for fathers. The pay is equal to 100 percent of daily earnings, and the employer is responsible for paying it. Paternity leave will be extended to 20 days if the employer is registered in the government programme (Empresa Cidada).

Parental leave

Brazil has no provisions in the law regarding parental leave besides the mentioned maternity and paternity leaves.

Other leave

Leave for Marriage - 3 daysBereavement Leave (Death of a parent, fetus, or partner) - 2 days

06. Employment termination

Termination process

Employment contracts may be canceled at any moment with the required notice.


Employees who report to union representatives, members of the Internal Committee for Accident Prevention (CIPA), pregnant employees, employees with work-related injuries, and employees covered by specific collective bargaining agreements are excluded from this.


Termination notices must be in writing.

Notice period

Notice is required only in certain cases. Employers commence the process of severing the employment relationship. After one year of work, a 30-day notice period will apply. For employees with more than one year of service, the notice period will be 30 days plus three additional days for each year worked, up to a maximum of 60 additional days. If the employee initiates the termination, he or she is required to give 30 days' notice. If the employee is terminated during his or her probationary period, he or she may request an earlier release than the 30-day period. If the termination is amicable, the notice period is reduced.

Severance pay

Severance pay varies according to the manner in which the employment agreement is terminated. When severance is necessary, the employee is entitled to one month's pay for each year worked. Employers contribute 8% to the Severance Fund (FGTS), and when an employee is let go, 40% of the remaining balance is paid as a termination penalty. When mutual consent is obtained, 20% of the balance is paid out.

Probation period

The probation period in Brazil is 45 days but can be extended to 90 days.

07. Working hours

General

The workweek in Brazil can last up to 44 hours, with an ideal of eight hours per day (plus one hour for lunch) during the week and four hours on Saturday. Certain collective bargaining agreements or collective bargaining agreements may provide for different work hours.


Between two consecutive work days, employees are entitled to a minimum of 11 hours of rest. Additionally, each employee is entitled to 24 consecutive hours of rest per week, including Sunday. Unless an exception applies, employers cannot require employees to work on Sundays or public holidays. For shift work, night work, and other unusual circumstances, special rules apply.

Overtime

Overtime is restricted to a maximum of two hours per day. Overtime is defined as any hour worked in excess of eight hours in a single day and is compensated at a rate of 150 percent of regular pay. Additionally, work performed on a holiday is compensated at a rate of 200 percent of the regular rate.

08. Minimum wage

General

According to Brazil's compensation laws, the minimum wage will be 1,039 BRL in 2020. In general, wages in Brazil are paid on a monthly basis. Although annual increases are not required, they are common and are typically negotiated as part of a collective bargaining agreement. Additionally, employees receive a 13th-month salary bonus. The bonus is payable in two installments after 15 days of work. Additional allowances, such as travel, may be included in an employee's compensation package.

09. Employee benefits

General

The Brazilian government provides health insurance, however private health insurance is becoming more widespread as an employee benefit.

In Brazil, most perks are mandated by law, and there are very few negotiating grounds on benefits with the candidate. In addition to the advantages detailed in the preceding sections, there are significant levies for different social charges that cover medical and other social welfare programs.

Basic monthly benefits for local employees are mandatory and include a lunch voucher, transportation voucher, life insurance, dental insurance, and private medical insurance.

Another often granted benefit is day care help.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Brazil

to hire a team takes time, money, and effort. The labor law in

Brazil

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Brazil

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Brazil

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Brazil

via our Employer of Record / PEO solution.

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