Employer of Record in Brazil

Payroll in Brazil

Wages

• Minimum wage rates in Brazil are set nationally. The national minimum wage is 1,518 BRL per month, reflecting a 7.5% increase from the previous rate.
• Certain sectors, such as oil and gas, may have specific wage benchmarks that differ slightly from the national standard. These benchmarks are established to ensure fair compensation across various industries. 

Salaries

The overall annual average salary in Brazil is approximately 60,000 BRL per year, with monthly earnings varying significantly by position, experience, and region. The median monthly salary is estimated to be around 5,000 BRL.

By gender, a wage gap exists with average annual salaries for men typically exceeding those for women. Efforts to reduce this disparity continue through targeted government initiatives and policy reforms.

Salaries by location in Brazil

São Paulo: Known for offering salaries above the national average, particularly in sectors such as finance, technology, and healthcare. 

Rio de Janeiro: Offers competitive compensation in industries like tourism, entertainment, and trade, with wages generally reflecting the cost of living. 

Brasília: While salaries in Brasília are competitive, certain sectors may offer compensation slightly below the national average, influenced by regional economic factors.

Payroll frequency

In Brazil, employees are paid on either bi-weekly or monthly basis, with salaries disbursed on a fixed, predetermined dates specified in the employment contract or workplace regulations, usually the 5th and the 20th. The Brazilian labor laws mandate that remuneration must be paid at least once a month, ensuring regular income for employees.

In addition to regular monthly wages, employees may receive additional compensation such as annual bonuses or incentives. These payments are often stipulated in collective bargaining agreements or internal company policies and are disbursed according to the terms outlined therein. Employers are required to adhere to the agreed-upon schedules for these payments to maintain compliance with labor regulations.