Employment in Brazil is governed by the Federal Constitution and the Consolidation of Labour Laws (CLT), with collective agreements adding sector-specific minimums on top. Here is what employers need to know about leave, pay, the 13th salary, tax, social charges and ending employment.
The CLT sets minimum leave for all employees with a signed work card (carteira assinada). Leave in Brazil is counted in calendar days, not working days, and collective agreements often improve on the statutory minimums.
30 calendar days after each 12 months of service, paid with an extra one-third bonus (terço constitucional). Can be reduced where the employee had more than 5 unjustified absences.
The employer pays the first 15 days of sickness absence in full. From day 16, the employee claims a temporary incapacity benefit from the INSS.
At full pay. The employer pays it and offsets the amount against its INSS contributions. Employers in the Empresa Cidadã programme extend it by 60 days.
Rising to 10 days in 2027, 15 in 2028 and 20 in 2029 under Law 15,371/2026. Empresa Cidadã employers currently add 15 days.
The employer decides when leave is taken, within the 12 months after the employee becomes entitled to it, and must give at least 30 days’ written notice. With the employee’s agreement, leave can be split into up to three periods: one of at least 14 days and the others of at least 5 days each. Employees can also sell up to one-third of their leave back to the employer (abono pecuniário). Leave not granted in time must be paid at double rate.
Law 15,371/2026, signed on 31 March 2026, extends paternity leave from 5 to 20 days in stages starting on 1 January 2027 and creates a paternity benefit (salário-paternidade) under the social security system. Until then, fathers are entitled to 5 days of paid leave. Adoptive parents are entitled to the same maternity leave as birth mothers.
Set up each Brazilian leave type in IceHrm with its own accrual, carry forward and approval rules, including pro-rata entitlements for new joiners. Employees see their live balance before they apply, and managers see who is away on a shared team calendar. Leave management →
The national minimum wage is set by federal decree every year and takes effect on 1 January. Many states and collective agreements set higher minimums (piso salarial) for particular jobs.
From 1 January 2026 (Decree 12,797/2025). R$54.04 a day or R$7.37 an hour.
With a maximum of 8 ordinary hours a day and a paid weekly rest day, preferably Sunday.
On top of the normal hourly rate, for up to 2 extra hours a day. Collective agreements often set higher rates, especially for Sundays and holidays.
One month’s pay, pro-rated by months worked. The first instalment is due by 30 November and the second by 20 December.
A constitutional amendment (PEC 221/2019) to cut the maximum week to 40 hours and end the six-day “6x1” schedule was approved by the Chamber of Deputies in May 2026 and by the Senate constitution committee in September 2026. It still needs a Senate plenary vote, so the 44-hour limit applies until any amendment is promulgated.
For urban workers, work between 10pm and 5am earns a premium of at least 20%, and each night hour is counted as 52 minutes and 30 seconds.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so overtime and night premiums reflect what was actually worked. Time & attendance →
Brazil taxes personal income at progressive rates of up to 27.5%. Employers withhold income tax (IRRF) from each monthly payment, after deducting the employee’s INSS contribution and allowances for dependants. Individuals file an annual adjustment return.
| Monthly taxable income | Rate | Deduction |
|---|---|---|
| Up to R$2,428.80 | 0% | – |
| R$2,428.81 – R$2,826.65 | 7.5% | R$182.16 |
| R$2,826.66 – R$3,751.05 | 15% | R$394.16 |
| R$3,751.06 – R$4,664.68 | 22.5% | R$675.49 |
| Over R$4,664.68 | 27.5% | R$908.73 |
From January 2026, Law 15,270/2025 adds a monthly reduction on top of the table. Employees with monthly taxable income up to R$5,000 pay no income tax at all, and the reduction tapers off for income between R$5,000.01 and R$7,350. Above R$7,350 the normal table applies in full.
Employer social charges in Brazil are significant. On top of gross salary (including the 13th salary and the holiday bonus), employers pay social security, accident insurance, third-party contributions and a monthly deposit into the employee’s FGTS severance fund.
On total payroll, with no ceiling. Financial institutions pay 22.5%. Some sectors are phasing out a revenue-based alternative.
Deposited monthly into the employee’s own severance fund account. Not deducted from the employee’s pay.
Depends on the risk level of the business activity, then adjusted up or down by the company’s accident record (FAP).
Education allowance, INCRA and the S-system (SENAI, SESI, SESC, SENAC, SEBRAE). Around 5.8% for many businesses, depending on the sector.
| Monthly salary | Rate |
|---|---|
| Up to R$1,621.00 | 7.5% |
| R$1,621.01 – R$2,902.84 | 9% |
| R$2,902.85 – R$4,354.27 | 12% |
| R$4,354.28 – R$8,475.55 | 14% |
Build Brazilian pay the way you already structure it, with your own salary components, deductions and formula columns, such as an FGTS or INSS column. Want to know how well IceHrm handles payroll calculations for Brazil? Contact us or see Payroll →
An employer can dismiss an employee without cause (sem justa causa), but must then give notice and pay a penalty on the FGTS balance. Some employees have temporary job security, including pregnant employees (from confirmation of pregnancy until 5 months after birth), employees returning from a work accident (12 months) and elected accident prevention committee (CIPA) and union representatives.
| Length of service | Notice |
|---|---|
| Up to 1 year | 30 days |
| Each additional full year | +3 days |
| 20 years or more | 90 days (maximum) |
| Type of termination | Main entitlements |
|---|---|
| Dismissal without cause | Notice, pro-rata 13th salary and holiday pay, 40% penalty on the FGTS balance, FGTS withdrawal and unemployment insurance |
| Mutual agreement | Half the notice, 20% FGTS penalty, withdrawal of up to 80% of the FGTS balance, no unemployment insurance |
| Resignation | Pro-rata 13th salary and holiday pay. No FGTS penalty or withdrawal |
| Dismissal for just cause | Unpaid salary and vested holiday pay only |
Brazil has no separate statutory severance payment: the FGTS fund and the 40% penalty play that role. Collective agreements may add further termination benefits.
Brazil has 9 fixed national public holidays, plus Good Friday. States and municipalities add their own, and Carnival and Corpus Christi are optional days off (ponto facultativo) at federal level but holidays in many cities.
Public holidays are paid. Work on a holiday must be paid at double rate unless another day off is given, and collective agreements often govern holiday work in commerce.
Leave groups give each office its own holiday calendar, so teams in São Paulo, Rio de Janeiro and other cities get their state and municipal holidays automatically. Holiday calendars →
Employment contracts are open-ended by default. They can be verbal or written, but a written contract is standard practice and cannot provide less than the CLT or the applicable collective agreement.
A trial contract (contrato de experiência) can last up to 90 days, and may be extended once within that limit. Other fixed-term contracts are allowed only in limited situations, may last up to 2 years and may be renewed only once. A contract that exceeds these limits becomes open-ended.
Send contracts for e-signing, store them with medical certificates on the employee’s record, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Brazil, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Brazil? Talk to us.
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