Table of Contents
Labor Laws in BrazilBrazil is one of the top ten most influential emerging economies for doing business. Nevertheless, if you want to hire local talent, you must consider the next four key labor laws in Brazil.
Hiring LawsIn Brazil, when hiring a new employee or dismiss him/her, it is a must to inform this process to the General Register of Employed and Unemployed —Cadastro Geral de Empregados e Desempregados (CAGED). Also, employees must be enrolled in the Social Integration Program —Programa de Integração Social (PIS).It is required to report all the information related to payroll, taxes, and other labor ancillary obligations in the digital bookkeeping system known as eSocial.
Benefits to hire employees in BrazilThe main employee benefits in Brazil are:
- Workers are entitled to take 30 days of paid vacation after 12 months of work.
- Get an additional holiday pay equivalent to 1/3 of their monthly salary.
- Receive a proportional Christmas Bonus or 13th salary (one-month salary which is paid in two parts: 50% in November and 50% in December).
- Employers must provide a transport and meal subsidy for their employees.
- Access to the Federal Severance Pay Fund (FGTS), where employers make monthly contributions corresponding to 8% of their employee’s compensation.