HR Software for Brazil
Leave Policy
Maternity Leave
Pregnant employees are entitled to 120 days of paid leave. The employee receives 100% of her average salary during this period and the employer is responsible for this remuneration. However, the government refunds this amount as a tax deduction the same month.
The employee can extend the vacation with a medical certificate. During this period, the employee receives 100% of the salary paid by the employer.
Paternity Leave
Employees are entitled to 5 calendar days of paid paternity leave. The employee receives 100% of his average salary during this period and the employer is responsible for this compensation.
The employee cannot extend the vacation.
Parental Leave
Parental leave is not regulated by law in Brazil. However, employees may be entitled to maternity and paternity leave.
Sick Leave
There is no maximum length of sick leave for employees. Depending on the duration, this vacation is paid at different rates and by different payers:
| Period | Pay (% of salary) | Payer |
|---|---|---|
| 0 – 15 days | 100% | Employer |
| 15 days onwards | 91% (maximum amount paid is BRL 6.433,57) | Social Security Agency (INSS) |
Pay & Tax
Minimum Wage Requirements
National minimum wage R$1,412.00 per month
Please note that IceHrm EOR employees are covered by a collective agreement that provides for a minimum wage of R$ 1,590 per month.
Individual Income Tax
Personal income tax ranges from 0% to 27.5%. Income tax is calculated according to a progressive rate. Several additional factors can affect overall rates, such as marital status and income level.
| Gross Annual Income (BRL) | Tax Rate (%) |
|---|---|
| Less than 1,903.98 | 0% |
| 1,903.99 – 2,826.65 | 7.5% |
| 2,826.66 – 3,751.05 | 15.0% |
| 3,751.06 – 4,664.68 | 22.5% |
| Above 4,664.68 | 27.5% |
Payroll Cost
The cost to the employer is generally estimated at 36.8% of the employee’s 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 880 BRL per month
*These costs are calculated based on the employee’s monthly salary including bonuses and allowances.
The meal voucher amount is calculated as BRL 40 per working day per month, so the exact amount may vary.
annual costs
- 13th salary – 1 monthly 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) – 315.52 BRL per year (~USD 59)
- Vacation pay – one third of the employee’s monthly salary or one third of the vacation days taken
Conditional costs
- Abono Pecuniário – Employees can have up to 10 days of their vacation pay paid out instead of using it as paid time off.
- Childcare allowance – Female employees with children aged 0-60 months are entitled to a monthly childcare allowance of up to BRL 290.98 per child.
Overtime Pay & Maximum Hours
The standard working hours are 8 hours per day and 40 hours per week. The standard working week lasts from Monday to Friday.
Employees can also work 8 hours per day and 44 hours per week from Monday to Saturday, including 4 hours on Saturday.
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.
Layoffs in Brazil can be complex. In Brazil, the employer can terminate at his own discretion, except for certain employees (pregnant, industrial accident or election as chairman of the internal commission for accident prevention).
Allowed terminations in Brazil include:
- By mutual agreement
- Voluntary by the employee
- Unilaterally by the employer for legitimate reasons
1. Gross misconduct
2. Substantial abuse
3. Violation of trade secrets
3. Dismissal for disciplinary reasons - When the contract expires
Notice Period
The minimum notice period is 1 month and increases depending on the length of employment.
- Up to 1 year of employment – 30 days notice period
- Over 1 year of employment – the notice period increases by 3 days for each year of employment until the maximum notice period of 90 days is reached
Severance for Employees
In Brazil, workers who are fired without cause are entitled to:
- Residual salary
- Unused vacation entitlements
- Proportional 13th salary (bonus payment)
- 40% of the FGTS paid during the employment relationship
If employees are terminated for good cause, they are entitled to:
- Residual salary
- Unused vacation pay
- Proportional 13th salary (bonus payment)
In order to protect you from unforeseen financial risks arising from the termination of the employment relationship, IceHrm applies a severance pay provision in all employment contracts in this country. IceHrm has extensive expertise in managing litigation risks worldwide and the calculation of the severance pay reserve is based on applicable common law or statutory requirements and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.
Statutory Time Off
Paid Time Off
Both full-time and part-time employees are entitled to 30 calendar days of paid time off per year. PTO is credited monthly at 2.5 days per month. Employees are entitled to annual leave after one year of employment. An employee may not take vacation during the first year of employment.
Please note: Our platform operates in business days and Brazilian PTO is in calendar days. (20 working days – 30 calendar days).
Public Holidays
There are about 12 national holidays in Brazil (14 days in total).
National holidays include:
- New Year celebration
- Carnival (2 days)
- Easter (2 days)
- Martyrs’ Day of Tiradentes
- Labor Day
- Corpus Christi
- Catholic holiday
- Independence Day
- Catholic saint
- Day of the Dead
- Day of the Republic
- Christmas Day
There are 8 regional holidays celebrated in Brazil. Some regional holidays are:
- Anniversary of São Paulo
- Day of the State Rebellion
- Black Consciousness Day
- Public holidays in Rio de Janeiro (5 days)
Onboarding
Onboarding
Onboarding takes 3 working days.
Additional Info
Employment Contract Details
Contracts must be written in Portuguese or English and can be bilingual. They must be in writing and signed by both parties.
A contract must contain:
- Surname
- Date of start of work
- Place of work
- Length of employment
- Job descrption
- Conditions of Termination
Probation Period
Probationary periods are not mandatory. There is no minimum probation period. The maximum duration of the probationary period is 90 days (3 months).
Fixed-term contracts cannot have a trial period.