COMPENSATION
- Compensation in Brazil is comprised of not only the employee's fixed salary, but also amounts for any commissions, bonuses, fringe benefits, such as personal or family benefits and also living expenses.
- Employees in Brazil are entitled to be paid at least on a monthly basis, with exception to commissions.
- Brazilian employment has what is called the 13th salary, which consists of approximately a month's salary and is paid in two installments during November and December. This is very similar to a Christmas bonus like in the US and other countries.
- On a monthly basis, 20% of the employee's salary is deducted by FGTS (further explained under Termination Laws page).
- Employees may require a maximum of two hours of overtime with a premium pay of at least 50%, and an additional 20% premium for hours worked during night shifts.
- Employees are eligible for three days paid leave upon marriage, two days paid leave for a period of mourning, and fifteen days paid leave for an illness on an annual basis.
- Maternity leave consists of a 120 day paid leave of absence, employees are also offered five days for paternity leave.
- Ever 12 months of service provided by an employee to the company, the employee receives a 30-day paid vacation.
- Resident taxpayers are subject to tax on worldwide income on a cash basis for each tax year, whether or not their income is remitted to Brazil.
- In addition to salaries and wages being taxable in Brazil, other taxable employment income includes bonuses, gratuities, compensation, allowances and pensions.
- There are also taxable benefits received form your employer that you must consider when filing your taxes in Brazil, including cost-of-living, housing, educational allowances, free or subsidized accomodations, as well as payment reimbursement by the employer of home leave affairs.
Sources:
Society for human resource management. (2014). International Assignment: Extraterritorial Laws: Do
laws like the Fair Labor Standards Act and the Family and Medical Leave Act apply to U.S. citizens working in several other countries? Retrieved from http://www.shrm.org/templatestools/hrqa/pages/dolawslikethefairlaborstandardsactandthefamilyandmedicalleaveactapplytouscitizensworkinginseveralothercountries.aspx
Novais, A. (2012). Brazilian employment law in a nutshell. The Brazil Business. Retrieved from
http://thebrazilbusiness.com/article/brazilian-employment-law-in-a-nutshell