Global Employment Updates 2023: Brazil

Global Employment Updates 2023: Brazil

Brazil, officially known as Federative Republic of Brazil (República Federativa do Brasil), is the world’s fifth largest country by area. It is a federal republic with a president, who serves as both head of state and government. São Paulo and Rio de Janeiro are the major urban centres. The country’s total population is estimated at around 210 million people. Brazil is considered an advanced emerging economy, hosting some of the world’s most abundant renewable and non-renewable resources.

The main source of labor law in Brazil is the Consolidation of Labor Laws 1943 (Consolidação das Leis do Trabalho, CLT), which is also known as the Labor Code. Its extensive 2017 reforms, known collectively as the Labor Reform, implemented changes to many articles and was intended to modernize the Labor Code, simplify procedures, better recognize collective negotiations and formalize workforce regulation. In Brazil, labor laws are a matter of federal law rather than state and municipality legislation. Therefore, labor laws are generally standardized.

What to Know:

MINIMUM WAGE

Minimum Wages in Brazil remained unchanged at 1212 BRL/Month (235.605 USD/Month) in October 2022.

WORKING HOURS

According to employment law in Brazil, a standard working day is eight hours long, while a working week should be no longer 44 hours, with a working month totally 220 hours. Overtime hours are allowed; however, they should be limited to two hours per day.

PAID VACATION

Every employee working under the CLT (Celetista) regulation has the right to a 30-day rest for every 12 months of work. If by the time an employee is dismissed, they have not taken their vacation, then the employer is obliged to pay them a 1/3 extra of the total vacation value.

13TH SALARY

The 13th salary is a gratification equivalent to a month’s salary and paid in two instalments. In Brazil, it is paid in November and December. It is the equivalent to a Christmas bonus in countries like Germany, Argentina and Portugal.

SICK LEAVE

Employers are obliged to pay up to 14 days of sick leave if the employee has received authorization from a registered doctor. After that period, authorized sick leave will be paid by the National Institute for Social Security (INSS) agency for up to two years.

MATERNITY AND PATERNITY LEAVE

In Brazil, maternity leave totals four months, or 120 days, which can be extended to 180 days, and is paid by the INSS. Paternity leave totals five days but may be extended to up to 20 days.

1. MARRIAGE LEAVE

Under Brazilian employment law, an employee is entitled to three days of paid leave when they get married.

2. PUBLIC HOLIDAYS

Employees are entitled to the 18 holidays in Brazil