Employee Benefits in Brazil

Bonuses and additional payments

In Brazil, employers are legally obligated to pay a 13th-month salary, commonly referred to as the Christmas bonus, equivalent to one month’s salary. This bonus is typically disbursed in two installments: the first by November 30th and the second by December 20th each year.

Annual leave

Employees in Brazil are entitled to paid vacation leave after completing one year of service. The statutory entitlement is 30 calendar days per year. This leave is fully paid and can be taken throughout the leave year, as agreed between employer and employee.

Additional leave may be offered as part of an employment contract, though it is not required by law. Many employers offer enhanced leave policies to stay competitive and improve retention.

Unused statutory leave must be taken within 12 months after it is earned. Payment in lieu of unused leave is only permitted upon termination of employment.

Sick leave

In Brazil, personal and sick leave are governed by the Consolidation of Labour Laws (CLT). Employees are entitled to up to 15 days of paid sick leave per illness, with full salary paid by the employer. If the illness extends beyond 15 days, the National Social Security Institute (INSS) provides sickness benefits. Employers may offer more generous sick leave policies through employment contracts or collective agreements.

Parental leave

Employers must provide 15 weeks of paid maternity leave, typically consisting of six weeks before and nine weeks after childbirth, for each pregnancy. Pregnant employees who have been employed for at least one year are eligible for two-thirds pay during maternity leave, funded by social security; those employed for less than one year may receive reduced benefits. Written notice and medical documentation are required to be submitted to the employer confirming the pregnancy and expected delivery date.

Additional benefits

In addition to the above benefits, employers are legally required to provide these benefits under Brazilian labor laws: 

• Social security (INSS): Employers contribute approximately 20% of an employee’s gross salary to the National Social Security Institute (INSS), covering retirement, sickness, and maternity benefits.
• Severance fund (FGTS): Employers deposit 8% of an employee’s monthly salary into the FGTS account, which can be accessed upon termination, retirement, or under specific conditions. 

Public healthcare coverage is provided to all Brazilian residents through the Unified Health System (SUS), but a significant portion of the population opts for private healthcare services. 

Employer social costs cover a substantial portion of employee benefits in Brazil, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance, if needed. As your employer of record in Brazil, we may be able to provide optional supplementary medical insurance coverage for professionals and their dependents at a more cost-effective rate.