Table of Contents


Table of Contents


Brazilian Real (BRL)

Payroll Frequency


Employer Taxes

20% to 22.5%

About Brazil

Brazil is the fifth largest country in the world, and derives its name from a tree called Brazil wood. The country is known for its passion for soccer/football and every city in Brazil has a stadium.

Despite football being a major contributor to Brazil’s economy, the country has a mixed economy and a GDP of $ 2.080 trillion, according to the International Monetary Fund. It also has a vast amount of natural resources including iron, gold, and uranium; it is estimated that Brazil also has a total $21.8 trillion worth of untapped resources. Its fertile and enormous landmass makes the production of different agricultural products possible, making agriculture the main contributor to its economy. Brazil is the largest economy in Latin America and second largest in the Americas, after the U.S.

Brazil is also known for its rich culture and local traditions and events such as Carnaval, local rituals like Candomble, martial arts such as the Capoeira and even soccer cults.

Employment Relationship

• Permanent Employment

Employment agreements are typically concluded for an indefinite term and at will, meaning either party can terminate without cause, upon mandatory prior notice, and, in the case of an employer-initiated termination, payment of severance. The first 90 days of a contract for an indefinite period is considered the probation period, and no severance is owed if employment is terminated within 90 days.  

• Fixed-Term or Specific-Purpose Contracts

Brazilian labor law prohibits hiring workers on a fixed-term contract for tasks of a permanent nature. Fixed-term contracts can only be signed for services whose nature or transience justifies the predetermination of the term or for business activities of a transitory nature. Fixed-term employment contracts can be executed for a maximum period of 2 years and may be renewed for the same period once. If the employment relationship continues, the contract is then considered to be for an indefinite period. There are restrictions on the number of fixed term employees in an organization, depending on the total number of employees. 

• Temporary Employment Contratcs

Companies can outsource all jobs and use third-party service providers to temporarily replace staff or meet the demand for services. The initial term of a temporary contract is 180 days which can be extended by 90 days (whether consecutive or not). The third-party service provider and the client company are jointly responsible for guaranteeing the temporary workers' safety, hygiene, and health.  

Probationary Period

In Brazil, the first 90 (ninety) days of an employment contract for an indefinite period are considered the trial period, and the employer can dismiss the employee within this period without paying compensation at the end of the period. Employees who work beyond the probationary period are considered to be under an indefinite contract.

Working Hours

In Brazil, the maximum working hours are 8 hours a day and 44 hours a week for daytime workers, with reductions allowed for hazardous jobs and night workers. Daily working hours can be increased to 12 hours per day; however, the weekly limit of 44 hours remains. If an employee works 12 hours per day, he or she is entitled to 36 hours of weekly rest. Employees who work outside the employer’s establishment and those in management positions are not subject to working time limitations. The definition of remote work has been expanded to include hybrid schedules, provided that the hybrid schedule is explicitly described in the employment contract.

Holidays / PTO

• Statutory Holidays

New Year's Day – January 1 Carnival – 2 days holiday; dates subject to change every year Ash Wednesday – date subject to change every year Good Friday – date subject to change every year Tiradentes Day – April 21 Labor Day – May 1 Corpus Christi – date subject to change every year Independence Day – September 7 Our Lady of Aparecida – October 12 Civil Servants' Day – October 25 Public Service Day – October 28 All Souls' Day – November 2 Republic Day – November 15 Christmas Eve (from 2 p.m.) – December 24 Christmas Day – December 25 New Year's Eve (from 2 p.m.) – December 31

• Paid Annual Leave

In Brazil, all employees are entitled to annual leave. The accrual of annual leave is not affected by the length of service. Instead, the amount an employee is entitled to depends on the number of unjustified absences during the year.  Workers are entitled to paid annual leave after each year of service based on the following: 30 days, when the employee has missed up to five calendar days of work 24 days, when there are six to 14 days of absence 18 days, when there are 15 to 23 days of absence 12 days, when there are 24 to 32 days of absence Collective leave, available to all employees or certain sectors of the company, may be an option, depending on the collective agreement.  The remuneration for annual leave must be paid in advance. In addition to the vacation pay, a bonus is paid as 1/3rd of the remuneration for the duration of the leave.  

• Sick Leave

In Brazil, employees are entitled to paid leave if they are sick or injured. The employer pays the first 15 days of sick leave at the employee's normal salary. From the 16th day onward, the National Institute of Social Security pays the sick leave at rates fixed by the government.   The employee's contract is considered temporarily suspended while they are on sick leave. 

• Maternity Leave

In Brazil, female employees are entitled to 120 days (approximately 17 weeks) of paid maternity leave: 28 days before and 91 days after delivery and an extension of a maximum of 4 weeks on medical grounds (2 weeks before and 2 weeks after birth). Employees are paid 100% of their salary for the duration of leave, funded by the National Institute of Social Security. Through the Corporate Citizenship Program (Programa Empresa Cidadã) established under Law 11.770 of 2008, organizations may extend the maternity leave for their workers by an additional 60 days. The employer bears the total cost of this 60-day leave. However, this amount can be deducted from the organization's corporate income taxes.

• Paternity Leave

In Brazil, male employees in the private sector are entitled to five consecutive calendar days of paid paternity leave for the birth or adoption of a child. If the company is enrolled in a government program called "Empresa Cidadã," paternity leave may be extended to 20 days.  Employees in the federal public sector are entitled to 20 calendar days of paternity leave. At the state and municipal levels, entitlement to the additional leave period varies.

Termination of Employment

• Notice Period

In Brazil, an employer wishing to cancel an employment contract of indefinite duration without just cause must give 30 days' notice or pay in lieu of notice for workers who have been with the company for at least one year. The notice requirement will increase by 3 days for every year of service up to a maximum of 60 days, thus making a total notice period of 90 days for an employee with 20 years of service. During the notice period, an employee's regular working hours are reduced by 2 hours per day without prejudice to the full salary.

• Severance Benefits

Employees in Brazil are entitled to a termination payment (verbas rescisórias) in the event of dismissal. The legal obligations for the employers depend upon the duration of the contract as well as the type of termination. Benefits range from salary balance, prior notice entitlement, prorated salary for 13th month, prorated vacations, and total balance available from the Federal Service Indemnity Fund (FGTS, Fundo de Garantia por Tempo de Serviço) severance fund.