Brazil

Contract Types
Contracts can be indefinite or fixed term. The contract must be in Portuguese.

Probation
The probation period can be a maximum of 90 days (or two terms of 45 days). If it is initially 45 days, it may be renewed but only for an additional 45 days.

Working Hours
Working hours can be up to 44 hours per week but are usually 40 hours per week.

Overtime
Overtime is limited to 2 hours per day and paid at 150%. Working on a holiday is paid at 200%.

Other Financial
Employees’ salaries automatically increase each year in accordance with rates negotiated by unions, usually in May. The rate of increase of monthly salaries is usually 2.5-3%.

Other
A 13th month salary is required and is equal to one month’s salary, paid in two parts in November and December. The payment is proportional when employment is not for the full year. This payment is not part of base salary but would be considered additional unless specified to employees otherwise.

A bonus is paid when an employee takes leave of one third of monthly salary payable two days before the leave starts.

Corporation Tax:
25%
Surtax of 10% on annual income that exceeds BRL 240,000

Employers’ Costs:
33.8 – 38%

Employees’ Contributions
7.5-14% – Ceiling of BRL 830

Income Tax Rates

• 0-1,903.98 BRL – 0%
• 1,903.99-2,826.65 BRL – 7.50%
• 2,826.66-3,751,05 BRL – 15%
• 3,751.06-4,664.68 BRL – 22.50%
• Over 4,664.68 BRL – 27.50%

Notice
Either party may terminate a contract with 30 days’ written notice. After one year of service, the employee is entitled to 3 additional days’ notice for each completed year of service up to a maximum of 90 days.

Payment in lieu of working a notice period is allowed.

A final payment must include normal pay up to the termination date, prorated untaken vacation pay, prorated 13th salary and bonuses.

Terminations
For termination under mutual consent, the notice period can be halved and only 20% of the employee’s funds in the Unemployment Guarantee Fund is due.

For other terminations, such as redundancies, a minimum of 30 days’ notice or one month’s salary is required as well as an additional three days of salary for each year worked, in line with the required notice period.

Severance Pay
Typically, severance pay is one month for each year of service but depends on the type of termination. Additionally, companies pay 8% of the employee’s monthly salary into a holding account (Unemployment Guarantee Fund) every month which is paid out upon termination. Termination without cause requires 40% of the value of this account to be paid to employee, 20% for mutual terminations and nothing for dismissal with cause.

During Probation
A contract can be terminated at the end of probation with final pay, including normal pay up to the date of termination, as well as untaken vacation pay and prorated 13th month salary.

National Public Holidays:
10 plus other optional holidays (*) some of which are celebrated only in certain regions. Generally, employees cannot be asked to work on a public holiday.

National Public Holidays 2024 Date

New Year’s Day – 1st January

No Day Given in Lieu

*Carnival Monday – 12th February

Day Given in Lieu N/A

*Carnival Tuesday – 13th February

Day Given in Lieu N/A

*Carnival end (until 2pm) – 14th February

Day Given in Lieu N/A

Good Friday – 29th March

Day Given in Lieu N/A

Tiradentes Day – 21st April

No Day Given in Lieu

Labour Day / May Day – 1st May

No Day Given in Lieu

*Corpus Christi – 30th May

No Day Given in Lieu

Independence Day – 7th September

No Day Given in Lieu

Our Lady of Aparecida / Children’s Day – 12th October

No Day Given in Lieu

*Public Service Holiday – 28th October

No Day Given in Lieu

All Soul’s Day – 2nd November

No Day Given in Lieu

Republic Proclamation Day – 15th November

No Day Given in Lieu

*Black Awareness Day – 20th November

No Day Given in Lieu

Christmas Day – 25th December

No Day Given in Lieu

Annual Leave
All leave entitlement is based on a 5-day working week. Public holidays falling on Sunday are not included. The number of days quoted are working days unless stated otherwise.

Paid legal entitlement
30 calendar days per year, which can be taken in no more than three blocks, one of which cannot be less than 14 days, after 12 months of service. Before this, employees may take leave given on a pro-rata basis.

Carry over permitted
Carry over is not permitted, however, employees can cash in one third of their annual leave and receive a holiday bonus in lieu.

Holiday Allowance
Employees must be paid 1/3rd of a month’s salary as a holiday bonus payable two days before the leave starts. Holiday pay and holiday bonus payments are due pro-rated upon termination in Brazil.

Sick
With a medical note, the first 15 days of absence must be paid fully by the employer. Any further days are paid through Social Security at fixed rates until work is resumed, or employment is ended. Employer social security continues to be due during periods of long-term sickness.

Maternity
New mothers are entitled to 120 days of fully paid maternity leave, though an extension of 4 weeks on medical grounds can be requested. The employee has job tenure from the date of conception until the child is 5 months old.

During maternity leave annual leave continues to accrue and the employee is entitled to their 13th month salary.

Salary and benefits are paid throughout by the employer, but this can be claimed back through deductions on social security payments.

The employer is responsible for the employee’s social security contributions during the leave period.

If the employer is enrolled in a government scheme, maternity leave can be extended to a total of 180 days.

The conditions of maternity leave also apply to adoption and to the care giver in same sex male relationships.

Paternity
5 days of paid leave is allowed which must be requested in advance. This is paid at 100% by the employer. This can be extended to 20 days if enrolled in a government scheme.

Parental
There are no provisions in the law regarding parental leave.

Other
3 days of paid leave is given for marriage, 2 consecutive paid days for bereavement of a family member, 30 days’ paid leave to care for a family member under 12 and 15 days to care for an older family member.

Medical Insurance
This is commonly provided to employees and their families (spouse and children in education up to the age of 24) though employees are usually expected to contribute significantly to family premiums. Often the level of cover is tailored depending on seniority. Typical provisions would be GP and outpatient, and the best plans include dental and a wide choice of facilities. Competitive employers provide sick pay supplementary to that which is mandatory.

Life Insurance
Life insurance, including family funeral cover and often accidental death and disability cover, is almost always provided by employers. Death benefit is usually 24 months’ salary. If a private pension plan is provided, then that will include a death in service provision.

Pensions
Most competitive employers would offer supplementary pensions which provide benefits on a defined contribution basis.

Other
It is common for allowances to be offered to cover items such as phone and home office. A petrol allowance of 7% of salary is also commonly paid. Such allowances will be governed by the Collective Bargaining Agreement.