☑️ The Basics

Currency: Brazilian real (Rate)

Public Holidays: 13 public holidays (see here)

Employer Taxes: 35-40% of gross salary

Official Language: Portuguese

Payroll frequency: Monthly or Bi-weekly

13th / 14th Salary: (what's this?) ****Brazilian employees receive both a 13th Month bonus (paid 1/2 in November and 1/2 in December) and a Holiday Bonus (1/3 of a month salary, when holiday is taken)

Three things to know about employing in Brazil

  1. Ending employment in Brazil takes time and is expensive. Notice periods start at 30 days and termination costs include severance payment and a stiff penalty for any dismissal not for cause.
  2. Holiday of 30 days is granted after 12 months of working; this holiday must be taken in the following 12 months and the employee also receives the Holiday Bonus (aka Vacation Premium) that is equal to one-third of a month's salary. Additionally, there is a mandatory 13th Month salary bonus equal to 1 month of pay and is paid in two equal parts, one half by November 30th and the other half by December 20th.
  3. The notice period in Brazil is typically 30 days (longer for employees employed for over a year; see below), but it can be halved if the termination is under mutual consent.

Employment in Brazil

Notice Period

Notice period for dismissals: 30 days for employees in their first year, plus three additional days for each additional year worked (up to a maximum of 60 additional days)

Notice period for resignations: 30 days

The notice period is halved if termination under mutual consent.

Termination & Severance

There is no mandatory severance pay. However an employee must receive pro rata amounts of holiday day, 13th month pay, and vacation pay. An employer can also provide pay in lieu of notice.

Each month, employers must contribute 8% of an employee's salary to the Severance Fund (FGTS), which employees may access upon dismissal. However when terminating an employee without just cause, an employer must also pay a penalty into the fund in the amount of 40% of the balance in the employee's FTGS account. When the separation is mutually agreed, the employer still must pay a 20% penalty.

Probationary period

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

Minimum Wage

1,100 BRL