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In Brazil, all employees are entitled to annual leave. The accrual of annual leave is not affected by the length of service. Instead, the amount an employee is entitled to depends on the number of unjustified absences during the year.

Workers are entitled to paid annual leave after each year of service based on the following:

• 30 days, when the employee has missed up to five calendar days of work
• 24 days, when there are 6 to 14 days of absence
• 18 days, when there are 15 to 23 days of absence
• 12 days, when there are 24 to 32 days of absence

Collective leave, available to all employees or certain sectors of the company, may be an option, depending on the collective agreement.

The remuneration for annual leave must be paid in advance. In addition to the vacation pay, a bonus is paid as one-third of the remuneration for the duration of the leave.

In Brazil, employees are entitled to paid leave if they are sick or injured. The employer pays the first 15 days of sick leave at the employee's normal salary. From the 16th day onward, the National Institute of Social Security pays the sick leave at rates fixed by the government.

The employee's contract is considered temporarily suspended while they are on sick leave.

In Brazil, employees are entitled to 120 days (approximately 17 weeks) of paid maternity leave. Maternity leave can be taken up to 28 days before the expected date of birth. Employees who experience a premature delivery or who adopt or obtain legal custody of a child are entitled to the same 120 days of maternity leave. Employees may extend the leave for a total of 4 weeks (2 weeks before and 2 weeks after birth) with a medical certificate. Maternity leave may also be extended an additional 120 days if the employee is hospitalized for a time exceeding the 2-week period after the discharge of the mother and newborn, minus the leave used before childbirth. Women who experience a miscarriage are entitled to 2 weeks of paid leave with the right to return to their previous position.

Employees are paid 100% of their salary for the duration of leave, funded by the National Institute of Social Security.

Through the Corporate Citizenship Program (Programa Empresa Cidadã) established under Law 11.770 of 2008, organizations may extend the maternity leave for their workers by an additional 60 days. The employer bears the total cost of this 60-day leave. However, this amount can be deducted from the organization's corporate income taxes.

In Brazil, male employees in the private sector are entitled to 5 consecutive calendar days of paid paternity leave for the birth or adoption of a child. If the company is enrolled in a government program called "Empresa Cidadã," paternity leave may be extended to 20 days. An employee is also entitled to take up to 6 days off to attend to his wife or partner's medical appointments during the pregnancy

Employees who give birth to or adopt a child with permanent deficiencies due to a congenital syndrome associated with infection by the Zika virus are entitled to a 20-day paternity leave extension.

Employees in the federal public sector are entitled to 20 calendar days of paternity leave. At the state and municipal levels, entitlement to the additional leave period varies.

Minimum Wage

The government declares the minimum wage through a decree that determines the minimum hourly, daily, and monthly wages for employees who are not subject to fixed wages based on the federal law or a collective bargaining agreement.

The minimum wage must not be below 30% of the minimum wage fixed for a certain region, zone, or subarea. An employee who is paid an amount lower than the minimum wage set for their area may demand the amount they are entitled to from their employer.

From January 1, 2026, the minimum wage is BRL 1621.00 (Brazilian reals) per month (BRL 54.04 daily or BRL 7.37 per hour).

Overtime, Holiday & Vacation Pay

Compensation for overtime work must be at least 50% higher than the regular hourly wage for permanent and part-time employees.

Work on Sundays and holidays are considered extraordinary and paid at least double the regular compensation.

The remuneration for annual leave must be paid in advance. In addition to the vacation pay, a bonus is paid as 1/3rd of the remuneration for the duration of the leave.

Notice Period

Notice periods are required in employment contracts for both indefinite periods and fixed-term contracts that are terminated before the end of the stipulated term.

Termination of an employee requires the employer to provide the employee with at least 30 days' notice, with an additional 3 days' notice added for each year of employment, up to a maximum of 60 days, resulting in a total notice period of 90 days for an employee with 20 years of service. Alternatively, the employer may pay compensation in lieu of notice. The employment contract, applicable collective agreement, or employer policy may provide additional notice in specific cases.

During the notice period, an employee's regular working hours are reduced by 2 hours per day without prejudice to full pay, or their hours are maintained at full pay and their notice is reduced by 7 days.

Severance Benefits

Employees in Brazil are entitled to a termination payment (verbas rescisórias) in the event of dismissal. The legal obligations for the employers depend upon the duration of the contract as well as the type of termination. Benefits range from salary balance, prior notice entitlement, prorated salary for 13th month, prorated vacations, and total balance available from the Federal Service Indemnity Fund (FGTS, Fundo de Garantia por Tempo de Serviço) severance fund.

Pension

Retirement pension eligibility is based on age (65 for men and 62 for women). The amount of pension for those who fulfill the necessary contribution period is calculated as:

• 60% of the average of 80% of income for which social security contributions have been made since July 1994
• 2% is added for each year of contribution beyond the minimum required

The amount of pension may not be less than the minimum wage, nor can it exceed the RGPS ceiling, currently BRL 8,157.41 (Brazilian reais) per month. Apart from the public retirement system, some companies provide their employees with a private pension plan, which can be defined by the company on the amounts of contributions by both the employer and the employee, which are subject to specific rules issued by a government agency called Superintendencia de Seguros Privados (SUSEP), with 2 types of plans available for employees. PGBL is administered by complementary pension institutions and complements national insurance, while VGBL is characterized as life insurance.

Dependents/Survivors Benefits

In Brazil, the dependents and survivors of an insured worker are provided for by the National Institute of Social Security in the event of the worker’s death. The death pension, which must be equivalent to the retirement benefit that the insured is due, is released to them monthly.

The pension is split equally among eligible survivors. If a survivor ceases to be eligible, the pensions for the remaining survivors are recalculated. Survivors are entitled to 50% of the pension the deceased received or was eligible to receive (100% of the minimum wage for rural workers), plus 10 percentage points per dependent, up to a maximum of 100%.

The amount of pension may not be less than the minimum wage, nor can it exceed the RGPS ceiling, currently BRL 8,157.41 (Brazilian reals) per month. There are 13 payments made in a year, which are adjusted annually according to changes in the cost of living index or the minimum wage.

Invalidity Benefits

Employees who retire due to disability receive a monthly pension once a medical examination by a licensed practitioner verifies total incapacity for work. To become eligible to receive this benefit, an employee must have at least 12 months of contributions. If the disability is the result of an accident, the contribution period is waived. The benefit is paid as long as the disability persists and the insured person can be reassessed by the National Institute of Social Security (INSS) every 2 years.

The disability benefit is calculated by as 60% of the benefit salary (80% of the salary in the contribution period) of the employee, increased by 2% for each year of contributions that exceeds the time of 20 years of contribution for men, or 15 years of contribution, for women. The maximum monthly pension is BRL 8,157.41 (Brazilian reais) per month. Retirees due to disability who need permanent assistance from another person, under the conditions provided for by law, may be entitled to an increase of 25% in the value of their benefit, including the 13th salary.

Personal Income Tax

The tax year in Brazil runs from January 1 to December 31. Residents are taxed on their worldwide income, while non-residents are taxed exclusively on income sourced in Brazil. The source of income is determined based on the location of the income payer and is irrespective of where the work is performed. The monthly income tax is calculated based on a progressive tax rate between 0 and 27.5% for residents and flat rate 25% for non-residents. There are no provisions related to local, state, or provincial income taxes in Brazil.

Visas

Visas in Brazil can be broadly classified into 2 groups: temporary and temporary residence visas.

Temporary visas include:

• Tourist - applicants must hold a valid return ticket and provide proof of sufficient funds to cover the duration of their stay; this visa does not permit any kind of work activity.
• Cooperation - for entering Brazil for participation in work that is part of an international cooperation program; includes conferences, professional training, as well as athletes, volunteers, and medical tourists.
• Business - similar to a tourist visa and covers business trips

Temporary residence visas allow a longer duration and authorize the visitor to bring in household items. The duration of these visa types depends on the specific activity for which they are issued:

• Performers - for athletes or artists participating in paid events, as well as their support staff
• Student - for students and unpaid student interns
• Work - for people working in Brazil with or without an employment contract, including professional training and internship in Brazilian branches of international companies.
• Journalism - for media professionals.
• Religious - for clergymen and missionaries going to Brazil to undertake missionary or academic work.

Additionally, there are also the following types of visas:

• Permanent - for people moving to Brazil permanently.
• Diplomatic - issued to diplomats and officials from governments or international organizations traveling to Brazil on an official visit.

Work Permits

A temporary visa (VITEM-V) may be given to those who wish to work in Brazil, as long as they have a work permit approved by the General Coordination of Labor Immigration. There are multiple eligibility requirements, including working at a legally established entity in Brazil. The visa holder is required to register with the Federal Police within 90 days of arrival in Brazil and obtain a residence permit.

The minimum age for work has been set at 16 years in the Constitution. Apprentices may start work at 14 years of age. Minors under the age of 18 years may not engage in night work (work performed between 10:00 PM and 5:00 AM), work that hinders school attendance, or work that poses a health hazard.