By Globalization PartnersJuly 2015
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Are you thinking about hiring a small number of employees in the country well known for its natural beauty, Carnival, and soccer team? Due to high social security costs and an extraordinarily labor-friendly workplace employment policy, hiring in Brazil can be challenging, but it’s far from impossible. Keep the following in mind when negotiating with the candidates for your growing company.
Vacation and Other Benefits: After each 12 months of service, Brazilian employees are entitled to 30 days of vacation. They must also be paid one-third of a month’s salary as a holiday bonus. Additionally, a 13th month bonus equal to one month’s salary is required to be paid each December. Mandatory employee benefits in Brazil include meal vouchers, health insurance, life insurance, and transportation. This adds up to about 80% in statutory costs on top of the base salary in Brazil, so budget carefully and know full costs before you go!
Sick Leave in Brazil: If one of your Brazilian employees gets sick and provides a medical note, his or her first 15 days of absence must be paid in full. After the 15-day period, benefits must continue to be paid until the employee returns to work or ends the employment.
Maternity Leave in Brazil: Every pregnant employee is entitled to four months of maternity leave and may not be dismissed during her pregnancy or 12 months after giving birth to her child. An employee’s full salary and benefits must be paid throughout the entire employment protection period.
The information above may have been overwhelming, but relax and please contact us to learn more about these and other regulations and benefits in Brazil.