Minimum Wage in 2024
The minimum wage in Brazil for 2024 is R$1,412 per month, a 6.97% increase from 2023.
Income Tax Rates
Income tax rates in Brazil range from 7.5% to 27.5% depending on salary brackets. Employees earning up to R$1,903.98 monthly are exempt.
Social Security Contributions
Employers in Brazil must contribute 20% of an employee’s salary to social security (INSS). Employee contributions range from 7.5% to 14%.
Average Salary Growth
The average monthly salary in Brazil in 2023 was R$2,979, up 7.2% from 2022. Salaries vary widely based on factors like location and industry.
13th Salary Bonus
Brazilian employees are entitled to a “13th salary” – an extra month’s pay at the end of the year. It’s typically paid in two installments.
FGTS Contributions
Employers must deposit 8% of an employee’s monthly salary into the FGTS, a government severance fund that workers can access in certain situations.
Compensation Components
Key components of Brazilian salaries include base wage, meal allowances, transport vouchers, 13th salary, and vacation bonuses.
Payroll Tax Exemption
Brazil has a payroll tax exemption program for certain sectors like IT and hospitality, replacing social security contributions with a revenue-based tax.
Paid Vacation and Bonus
Employees in Brazil are entitled to 30 days of paid vacation per year, plus a vacation bonus equal to 1/3 of their monthly salary.
Night Shift Compensation
Night shift workers in Brazil (10pm-5am) must receive pay at least 20% higher than daytime workers.
Parental Leave
Maternity leave in Brazil is 120 days at full pay, while paternity leave is 5 days. Some companies offer extended paternity leave.
Overtime Pay
Overtime in Brazil must be paid at a rate of at least 150% of regular hourly pay.
Meal Vouchers & Transport
Employers must provide meal vouchers and transportation allowances to employees, though the amounts can vary.
eSocial Payroll Reporting
Brazil uses an electronic system called eSocial for employers to report payroll and labor information to the government.
Outsourced Payroll Services
The Brazilian payroll system is complex – many companies use outsourced payroll services such as BPC PARTNERS to ensure compliance.
