Brazil has many different mandated compensation and benefits laws, and many employers offer employees supplemental benefits. Before you onboard employees, make a point to learn every aspect of Brazil’s employment law and how you can stay competitive by offering top-of-the-line benefits.
Brazil Compensation Laws
Brazilian employees are entitled to a 13th-month bonus that equals one month’s salary. Employers pay this in two parts in November and December, and the amount is pro-rated if the employee is terminated. As an employer, you should clearly state the salary you are offering and whether the bonus is included in the base salary.
The minimum wage is 1,100 BRL per month as of 2021, according to Brazil compensation laws. If you work with Globalization Partners, though, we observe a minimum wage of 1,347 BRL per month. Along with the minimum wage, employees also have the right to a non-decreasing salary.
Unions and collective bargaining agreements are common in Brazil. Compensation and benefits might vary based on industry and specific labor relations defined by a union.
Guaranteed Benefits in Brazil
The Brazilian government provides basic health insurance. However, many employers opt to offer private health insurance as well.
Mandated benefits include a meal voucher, transportation voucher, and life insurance at a standard rate for a family of three. Daycare, dental insurance, private medical insurance, and tuition assistance are also frequently offered.
Since most benefits are mandated by law, it can be difficult to attract potential candidates based on supplemental benefits. As part of our employer of record service, Globalization Partners offers new employees additional medical and dental coverage.
Brazil Benefit Management
Because Brazil mandates many employee benefits, it is essential to make sure every employee gets what they are entitled to. If you choose to handle Brazil benefit management alone, you may need to hire a local attorney or another expert in employment law. It is also helpful to hire a few trained professionals to disperse benefits to your employees.
You can also choose to work with a Brazil benefit outsourcing company. As a global PEO, Globalization Partners can manage benefits for your company and make sure you are well within the country’s employment guidelines. We can also act as the employer of record.
Benefits and Compensation Restrictions
As part of the country’s compensation restrictions, every employee must make at least the minimum wage and get the proper amount of time off.
Additionally, an annual bonus payout is more common in Brazil than monthly commissions. Commissions paid throughout the year carry a social charge of 80%, while a yearly bonus is only 40%.
Outsource Your Brazil Compensation Management With Globalization Partners
Rather than trying to keep up with your own benefit management, you can work with a global compensation outsourcing company that handles both benefits and payments.
Globalization Partners offers all the services you need to successfully open a subsidiary in Brazil, pay your employees, manage benefits, and stay compliant. We even take the liability off your shoulders and put it on ours when we act as the Brazil employer of record. Contact us today to learn more about our services.