Brazil
Knowledge Base
Frequently asked question, important data and information on EOR.
General information
$ 1302 BRL per month
Labor Law
Laws that regulate Labor Relationship
•Federative Republic of Brazil Political Constitution of 1988
•Consolidation of Labor Laws
•Agreements and Collective Work Agreements
Onboarding guide
Requirements for a labor contract
• ID card
• CPF (Natural Persons Register)
• Place and date of the contract
• Nationality
• Salary (only in BRL)
• Job description
• Location (Remote/Hybrid, office location)
• Working hours
• Other agreements
Pre-hire Medical exam
Yes, mandatory.
Types of contracts
• Indefinite
• Fixed-term
• Intermittent and seasonal contracts
Probation Period
90 calendar days.
Are offer letters mandatory in the country?
Yes.
Are digital signatures in labor contracts valid?
Yes
Mandatory onboarding documents
• ID card (RG)
• Picture (3X4)
• Individual Taxpayer Registration (CPF)
• Work card (from CPTS)
• Contribution to the Social Integration Program (PIS)
• Voter registration
• Military service certificate (only for men)
• Proof of address
• Birth certificate of children and CPF (If applicable)
• Marriage certificate (If applicable)
• Spouse ID card and CPF (If applicable)
Statutory benefits
Annual Bonus
A one-month bonus called the 13th-month bonus is paid in two installments: the first one no later than November 30 and the second one no later than December 20
Additional bonus
PLR: R$ 300,50,divided in to installments of R$150,25 payed at march 31st and August 31st
Leaves (medical, maternity, paternity, etc.)
• Maternity Leave: 120 calendar days. The leave is extended to the spouse in case of the death of the mother.
• Paternity Leave: 5 days. (Special case: Companies affiliated with the Corporate Citizens Program give 20 days)
•Adoption leave: 5 days
• Sick days: All employees are entitled to paid sick leave and must provide a medical certificate within 48 hours of the first day of sickness. The first 15 days are paid by the company. When the employee needs more than 15 sick days, they are paid by Social security.
• Bereavement leave: 2 days of paid leave for the death of a spouse, parents, children, grandparents, siblings, or an employee’s direct dependent
• Wedding leave: 3 days
• Other leaves: 1 day per year for donating blood. The employee must have the certificate
• Vote leave: 2 days. The employee must have the certificate
• To take exams to enter a higher education institution. The employee must have proof of it
• For court appearances. The employee must have proof of it
• 2 days for medical exams in the pregnancy period of wife or partner for men
•1 day per year to take a minor (up to six years old) for medical appointments
Annual Leave (days per year)
30 days of annual leave per year unless there have been absences:
• 30 days, for fewer than 5 absences
• 24 days, for 6 to 14 absences
• 18 days, for 15 to 23 absences
• 12 days, for 24 to 32 absences.
Article 129 and Article 130
The employee must be paid 1/3rd of a month’s salary as a vacation bonus
How do vacation days expire?
If vacation expire, it must be paid at double time
Official Holidays
• 1 Jan New Year’s Day
• 25 Jan São Paulo Anniversary (only for São Paulo)
• 20 Feb Carnival
• 21 Feb Carnival
• 7 Apr Good Friday
• 21 Apr Tiradentes Day
• 1 May Labor Day
• 8 Jun Corpus Christi
• 9 Jul State Rebellion day (São Paulo)
• 7 Sep Independence Day
• 12 Oct Our Lady of Aparecida /Holy Mary’s day
• 2 Nov All Souls’ Day
• 15 Nov Republic Day
• 20 Nov Black Consciousness Day
• 25 Dec Christmas Day
Work on national holidays and religious holidays is prohibited in accordance with applicable law (CLT Art. 70) the employee is entitled to paid rest during holidays, whether civil or religious.
Working on holidays and Sundays
Paid at double rate (200%)
Number of Working hours
8 hours a day, 40 hours a week.
•Day Shift: 8:00 am – 5:00 pm
•Night Shift 10:00 pm – 5:00 am
•Mixed Shift 9:00 am – 6:00 pm
Overtime
Paid at time-and-half (150%) for a maximum of two hours daily. C.P. Art. 7. For night overtime work, there is a 20% extra pay.
Social Security (what does it cover)
• Sickness-Assistance
• Accident-Assistance
• Annual payment (13th) • Maternity bonus
• Family bonus: applies to workers whose salaries are equal to or less than a predetermined amount, who have children under 14 years of age, or disabled children regardless of their age. (for monthly wage up to 59,2 BRL
INSS – National Institute of Social Security, Fund of Guarantee for the Time in Service FGTS, SAT/RAT – Labor Accident Risk, Social Assistance, Federal Tax
Payroll
Salary payment currency
Brazilian Real (BRL)
Can salary be paid in a different currency other than the local currency?
No.
Payment frequency
Monthly, employees are paid on the last day of the month.
VAT percentage
18% (ICMS)
Income Tax
Residents and non-residents are taxed at progressive income tax rates ranging from 0% to 27.5% For more information see https://taxsummaries.pwc.com/brazil/individual/taxes-on-personal-income
Tax Payer Identification Number
• Individual Taxpayer Registration (CPF)
• Contribution to the Social Integration Program (PIS)
Offboarding
Voluntary resignation
The requirements for resignation are:
• Physical resignation letter
• Notice period (30 days). If the employee does not notify resignation 30 days in advance, pay in lieu of notice must be deducted
• Termination medical exam (if the last periodical exam has expired)
Contract termination
• Unjustified dismissal
• Justified dismissal
• Voluntary resignation
• Mutual agreement
• End of the contract (fixed-term)
• Death of the employee
Justified Dismissal
Employers should consider a local lawyer’s advice before dismissing an employee.
The general rules of dismissal with just cause are provided for in article 482 of the CLT:
• Misconduct.
• Behavioral incontinence or malpractice.
• Habitual negotiation on their behalf or on behalf of others without the employer’s permission, and when it constitutes an act of competition to the company for which the employee works or is detrimental to the service.
• Criminal conviction of the employee, issued in court, if there was no suspension of the execution of the sentence.
• Negligence of duty.
• Habitual or on-duty drunkenness.
• Violation of corporate secrecy.
• Act of indiscipline or insubordination.
• Abandonment of employment.
• Physical offenses, except in case of self-defense, self-defense or otherwise.
• Constant playing of games.
• Loss of qualification or of professional requirements established by law
Unjustified Dismissal
No legal obstacle. Notice period: 30 days or pay in-lieu
Severance pay
The severance payment corresponds to:
• Proportional salary for the current month
• Proportional amount of the statutory Annual Bonus (Not applicable for justified dismissal)
• Proportional amount of unused vacations in addition to an extra amount of one-third (1/3) of the holiday remuneration (CF, art. 7, XVI)
• For expired vacation days, double remuneration (CLT, Art. 146)
• Proportional amount of bonuses, overtime and benefits (Not applicable for justified dismissal)
Compensation:
For unjustified dismissal:
• Compensation in lieu of notice- 30 days
• Compensation of 40% of the amount deposited in the employee’s FGTS account within the term of the employment contract.
• For justified dismissals: there is no payment of additional compensation required
Minimum Notice Period
30 days.
Immigration
Visa process
1. Submission of documents for the application translated into Portuguese. The process must be started outside Brazil
2. Once the request is approved, the official communication of approval can take 10 to 15 working days
3. After 5 working days from the official approval, the applicant is be able to apply for the stamp of the visa at the Brazilian consulate abroad (previously chosen). The applicant will have 180 days to obtain the stamp of the visa in his/her passport.
4. With the visa in stamped in the passport, the applicant will have up to 1 year to make the first entry into the country
5. Once in the country the applicant must register (within the first 90 days) with the Federal Police to obtain of the CRNM/RNE. Service at the Federal Police Station is carried out by appointment (Scheduled by Serviap)
6. At the Police appointment, the applicant will receive a request protocol from the CRNM that will already contain the document number
7. The physical card will be ready after 30 to 90 days from the date of the Police appointment.
8. The applicant will be able to stay in Brazil for 2 years as a temporary worker. If the immigrant remains in the contracting company, before the expiry of the 2 years, may apply to change the residence status to be considered a permanent resident, for an indefinite period.
Note: The bond will only exist with the contracting company, the applicant cannot to work for other companies
Visa documents
• Work Permit Application form
• Copy of passport
• Address
• Proof of education and professional experience
• 2 photographs (3×4)
• Criminal record
• Labor contract
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