With a working population of over 100 million people and major growth across tech, agribusiness, infrastructure, and renewable energy industries, Brazil is becoming an increasingly appealing labor market for multinational companies. São Paulo stands out in particular; it generates nearly 30% of the country’s GDP and is home to the largest workforce in South America.
However, hiring in Brazil also means navigating a complex labor code. Brazil’s Consolidation of Labor Laws (Consolidação das Leis do Trabalho, CLT) has strict rules about worker protections and statutory employee benefits.
For companies planning to hire in Brazil, it’s critical to understand both the benefits they’re legally required to provide and the voluntary benefits that can help attract and retain employees.
Who Is Entitled to Benefits in Brazil?
In Brazil, employers must provide statutory benefits to employees. Under the CLT, workers typically need to meet four criteria to qualify as employees. They:
- Perform the work themselves
- Work for the company regularly rather than on a one-off basis
- Work under the company’s direction or control
- Receive regular payment for their work
Self-employed contractors and people hired through personal service companies usually don’t meet these criteria and aren’t entitled to the same statutory benefits.
Minimum Wage, Working Hours, and Overtime
As of 2026, Brazil’s national minimum wage is BRL 1,621 per month. The standard workweek is 44 hours stretched across six days: five eight-hour days and one four-hour day. However, a current proposal backed by President Lula would reduce the standard workweek to 40 hours across five days.
As for overtime, employees can work up to two extra hours a day, paid at 1.5 times their regular rate. For holiday and weekend work, the overtime rate is double an employee’s usual pay. Employees in Brazil also receive hazard pay (adicional de periculosidade) for certain high-risk work, equal to an additional 30% of their monthly salary.
Mandatory 13th-Month Salary
Brazil requires employers to provide an additional month of pay known as the 13th-month salary (décimo terceiro salário), a statutory benefit also found in countries such as Mexico, Spain, and the Philippines. Sometimes called a Christmas bonus, the 13th-month salary is calculated based on how many months an employee worked during the year.
Both full-time and part-time employees qualify for the 13th-month salary, as long as they’ve worked at least 15 calendar days in the year. The bonus is split into two installments; employers pay the first part between February 1 and November 30, and the second by December 20.
Social Security and FGTS
INSS Contributions
Brazil’s National Social Security Institute (Instituto Nacional do Seguro Social, INSS) administers social security benefits funded by contributions from employers and employees, including retirement pensions, disability payments, maternity benefits, and survivor benefits.
Employers typically contribute a flat 20% of each employee’s gross pay, though that rate can vary for companies in certain industries, like financial services. Employees, on the other hand, contribute between 7.5% and 14% of their monthly pay depending on which salary bracket they fall into.
FGTS
Every month, employers deposit 8% of each employee’s salary into a mandatory severance pay guarantee (Fundo de Garantia do Tempo de Serviço, FGTS).
Created to provide financial support for workers terminated without cause, the FGTS now allows employees to access funds for additional qualifying events, including:
- Retirement
- Purchasing a home
- Natural disaster
- Termination
- Serious illness
Companies that terminate an employee without just cause must pay a penalty equal to 40% of the employee’s total FGTS account balance.
Transportation Benefits
In Brazil, employers must provide transportation vouchers (vale-transporte) to employees who use public transportation to commute to and from work. Employees provide details of their regular commute, and employers supply electronic transit credits to cover eligible transportation, such as buses, metros, and trains.
Employees contribute up to 6% of their base salary toward the benefit, with the employer covering any remaining transportation costs.
Paid Vacation and Public Holidays
Annual Vacation and Vacation Bonus
Under the CLT, employees receive 30 days of paid vacation after 12 months of employment. They can take all 30 days at once or split their time off into up to three periods. If they split it, one period must last at least 14 calendar days and the others at least five calendar days each. Employees can also choose to exchange up to one-third of their annual vacation for cash.
Employers must pay a vacation bonus equal to one-third of the employee’s regular salary before their time off begins.
Public Holidays
Employees in Brazil are entitled to several paid public holidays, with national holidays supplemented by state and municipal holidays depending on where they work. Employees required to work on a public holiday receive either double pay or an additional paid day off.
Maternity, Paternity, Sick, and Other Leave
Maternity and Paternity Leave
Employees in Brazil are entitled to paid parental leave, with maternity benefits funded through INSS. Maternity leave lasts 120 days following the birth or adoption of a child, while paternity leave is five paid days.
Companies enrolled in Brazil’s Citizen Business Program (Programa Empresa Cidadã) can receive a tax incentive for extending parental leave. Under the program, maternity leave can be extended to 180 days and paternity leave to 20 days.
Employees are protected from losing their jobs while on parental leave and have the right to return to their roles afterward.
Sick Leave
Employees in Brazil who cannot work because of illness or injury may be entitled to paid sick leave.
For the first 15 days, the employer pays the employee’s regular salary. Starting on day 16, INSS pays a temporary incapacity benefit (auxílio por incapacidade temporária), which is calculated based on the employee’s social security contributions.
Other Statutory Leave
Along with holidays, parental leave, and sick leave, employees in Brazil are entitled to several other types of paid leave, such as:
- Bereavement leave: Two paid days following the death of a parent, spouse, child, or sibling.
- Marriage leave: Three paid days for an employee’s marriage.
- Blood donation leave: One paid day for qualifying blood donations, subject to applicable requirements and proof of donation.
- Medical appointment leave: One paid day per year to accompany a child under six to a medical appointment.
- Prenatal appointment leave: Two paid days for fathers and partners to accompany a pregnant partner to prenatal appointments and ultrasounds.
- Preventive health screening leave: Three paid days every 12 months for routine cancer screenings.
While employees may use these types of leave only occasionally, employers still need to ensure they receive the time off they’re entitled to.
Meal and Food Benefits
Food vouchers (vale-alimentação) and meal vouchers (vale-refeição) are common employee benefits in Brazil. Food vouchers typically cover groceries, while meal vouchers can be used for prepared meals at participating restaurants and certain other establishments.
Federal law generally doesn’t require employers to provide vouchers, although a collective bargaining agreement (CBA) may make them mandatory. CBAs can establish industry-specific requirements for wages, working hours, benefits, and other employment conditions.
Employers may also receive tax incentives for providing food benefits through the Workers’ Food Program (Programa de Alimentação do Trabalhador), which encourages employers to help subsidize employees’ food costs.
Private Health Insurance and Other Voluntary Benefits
Brazil has universal public healthcare (Sistema Único de Saúde) funded through general taxes and social security contributions, but many employers also offer private health insurance.
Private coverage can provide faster access to care, larger specialist networks, more choice of clinics and hospitals, and shorter wait times for appointments and procedures. Although it isn’t mandatory, offering private health insurance can be a valuable benefit for attracting talent, particularly in competitive industries.
One option for employers looking to add private healthcare to their benefits package is RemoHealth, which offers global health insurance, along with RemoHealth Local for localized coverage tailored to employees in their country.
Other voluntary benefits commonly offered in Brazil include:
- Dental and life insurance
- Private pension plans
- Additional paid leave
- Mental health support, such as therapy or counseling
- Wellness benefits, including fitness programs, gym memberships, or wellness stipends
- Childcare assistance or reimbursements
- Professional development stipends for courses, conferences, books, or continuing education
Adding the right voluntary benefits can make an overall compensation package more competitive while giving employees support beyond what the law requires.
What Do Employee Benefits Cost Employers in Brazil?
There’s no universal percentage employers can add to salary to calculate total benefits cost. Expenses vary by employee and industry, making it important to understand the full benefits package before setting a hiring budget.
An employee’s salary is only part of the cost of employment in Brazil. Employers also need to budget for mandatory contributions, vacation and 13th-month pay, transportation, and any benefits required under an applicable collective bargaining agreement — plus any voluntary perks offered to employees.
Employ a Team in Brazil With RemoFirst
Managing employee benefits in Brazil is already a significant undertaking. Employers must navigate social security contributions, the 13th-month salary, paid leave, transportation vouchers, applicable CBA requirements, and other statutory benefits — each with its own rules.
But before a foreign company can employ workers directly, it needs to establish a legal entity in Brazil. Setting one up takes time and money, adds ongoing administrative requirements, and creates another layer of complexity before the first employee is even onboarded.
There’s another way. Companies can work with an Employer of Record (EOR) like RemoFirst to employ workers in Brazil without a local entity. RemoFirst becomes the legal employer and manages localized contracts, payroll, required contributions, statutory benefits, and other employment requirements.
Book a demo to see how RemoFirst can help you hire and manage employees in Brazil and 185+ other countries.
