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July 3, 2023
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3 mins
Brazil, the sixth most populous nation on Earth, boasts the third-largest economy across North and South America. According to the Global Innovation Index, a valuable resource for assessing global economic innovation and performance, Brazil holds the 57th position. Additionally, a significant portion of Brazil's GDP, approximately 67%, stems from the service sector.
The predominant nature of employment agreements is indefinite in duration, with fixed-term agreements being the exception, applicable only under specific conditions. Furthermore, it is mandatory for all employment contracts to be drafted in the Portuguese language.
The usual probationary period followed in Brazil is 45 to 90 days.
As per the Brazilian labor code, employees must be paid in Brazilian currency and receive their salary at least once a month. Typically, payments are made either every two weeks or monthly, based on the terms of the employment agreement.
As of 2022, the minimum wage in Brazil is 1212 BRL, or 245.41 USD.
Overtime is restricted to a maximum of 2 hours per day. It is paid at an additional rate of at least 50% of the normal salary.
It is mandatory to provide employees an additional month’s salary at the end of the year, called the 13th month salary. It is paid in two equal installments, the first by November 30th and the second by December 20th.
Social Security : 20–22.5%
Employees Severance Indemnity Fund : 8%
Employee Payroll Tax
Social Security : 7.50% to 14.00%
VAT: The standard VAT rate in Brazil is 17%, although it varies between 12% to 25%, depending on the states.
In Brazil, employment can be terminated at any time without stating the cause, provided the notice period is followed (or instead payment) and adequate severance is paid. Termination must be communicated in written form, duly signed, and dated.
The notice period for both probationary and permanent employees in Brazil is 30 to 90 days.
Employees’ severance pay is mandatory but depends on the type of termination process.
Non-Brazilian nationals require the following documents:
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