The individual income tax ranges from 0% to 27.5%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the marital status and the level of income.

The employer cost is generally estimated at 36.8% of the employee salary + Meal Voucher

• The Fundo de Garantia do Tempo e Serviço (FGTS) - 8%*
• Social Security - 28.8%*
• Meal allowance - 40 BRL per working day, estimated at BRL 880 monthly

*These costs are calculated on the employee's monthly salary including bonus and allowances

The amount for the meal voucher is calculated as BRL 40 per working day in the month, therefore the exact amount may vary. 

Annual Costs
- 13th Salary - 1 month salary, calculated as the gross monthly salaries received during the year including other salary payments, such as bonuses, allowances, and divided by 12. 
- Union Bonus (profit sharing) - BRL 300.50 a year (~USD 59)
- Vacation Bonus - One-third of the employee's monthly salary or one-third of the vacation days taken

Conditional Costs
- Abono Pecuniário - Employees can choose to receive up to 10 days of their vacation bonus paid out instead of using them as paid time off.
- Childcare allowance - Female employees with children aged 0-60 months are entitled to a monthly childcare allowance up to 290.98 BRL per child. 

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.

Employees can also work for 8 hours per day, 44 hours per week from Monday to Saturday, with 4 hours on Saturdays.

Pregnant employees are entitled to 120 days of paid leave. The employee will receive 100% of their average salary during this period, and the employer will be responsible for this pay. However, the government returns this amount in tax deductions in the same month.

The employee can extend leave with a doctor’s note. During this period, the employee will receive 100% of the salary covered by the employer.

Employees are entitled to 5 calendar days of paid paternity leave. The employee will receive 100% of their average salary during this period, and the employer will be responsible for this pay.

The employee cannot extend leave.

There is no maximum period for employees to take sick leave. This leave is paid at different rates and by different payers depending upon length:

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Brazil can be complex. There is at-will termination in Brazil for employers except for certain employees (pregnant, suffer an accident at work, or are elected president of the internal commission for accident prevention).

Compliant terminations in Brazil include:

• By mutual agreement
• Voluntarily by the employee
• Unilaterally by the employer based on justified reasons
  • Gross misconduct
  • Substance abuse
  • Breach of trade secrets
  • Disciplinary dismissal
• By the expiration of the contract

The minimum notice period is 1 month and will be increased according to the length of employment.

• Up to 1 year of employment - 30 days of notice
• Above 1 year of employment - the notice period is increased by 3 days for each year worked until the maximum notice period of 90 days is reached

In Brazil, if employees are terminated without cause, employees are entitled to:

• Balance salary
• Unused holiday payouts
• Proportional 13th salary (bonus payment)
• 40% of the FGTS paid during employment

If employees are terminated with cause, employees are entitled to:

• Balance salary
• Unused holiday payouts
• Proportional 13th salary (bonus payment)

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Both full-time and part-time employees are entitled to 30 calendar days of paid time off (PTO) a year. PTO accrues monthly at 2.5 days per month. Employees are eligible for annual leave after 1 year of work. During the first year of employment, an employee is not allowed to take any leave.

Please note: Our platform works in working days and the brazil PTO is in calendar days. (20 working days - 30 calendar days).

Brazil celebrates around 12 national holidays (a total of 14 days). National public holidays include:

1. New Year’s Day
2. Carnival (2 Days)
3. Easter (2 Days)
4. Martyrdom of Tiradentes
5. Labor Day
6. Corpus Christi
7. Catholic Holiday
8. Independence Day
9. Catholic Saint
10. Day of the dead
11. Republic Day
12. Christmas Day

Brazil celebrates 8 regional holidays. Some regional holidays include:

1. São Paulo Anniversary
2. State Rebellion Day
3. Black Awareness Day
4. Public Holidays in Rio de Janeiro (5 days)

Contracts must be in Portuguese or English, and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• Name
• Start date
• Place of work
• Length of the employment
• Job description
• Termination conditions