In Brazil, many additional costs must be calculated or estimated in addition to the liquid salary in order to know the real extent of the cost of labor. Certain charges are determined by law as a fixed percentage of the payroll. However, most have to be calculated from estimates of the number of days actually worked to the fertility rate, accidents at work, etc.
Overview of Labor Cost in Brazil
According to the report of labor cost of Brazil in 2013, the corporations in Brazil have the obligation to pay about 68.1% of salary and it is said that the labor cost is highest in the world. The following examples are the positions and its salaries yearly.
Position yearly salaries bonus
Engines 37,000 dollars –
Executive assistant 40,000 dollars one month
Senior manager 195,000 dollars 2~4 months
C class 325,000 dollars 2~12 months
According to Labor Act in Brazil, if the labors work for one year in a corporation, and they will have a 30 days holiday with payment. All of the salaries should be paid and one third of salaries should also be paid in advance. The reason of this level of payment is that balance of professionals with high abilities is broken. When the corporations want the labors with high abilities, they have to pay higher salaries and it is about 20~30% up of current salaries. As a result, the salaries of professionals will be up because of the transfer.
The following is an example of welfare that provided by corporations.
Company car 1500 (dollars, month)
Healthy insurance 600
Meal coupon 330
Food coupon 200
Dentistry treatment 150
Life insurance 150
In the Labor Act, it is not regulated that employers have an obligation to provide the welfare for employees. But because it is a custom for long years in Brazil, so it is general to provide it nowadays. Therefore, in order to employ the labors with high abilities, it is necessary to provide the welfare for employees.
Our Flowchart of Payroll Services in Brazil
① Please send the materials of attendance, for example ID cards or timesheet.
② We will input the data of work days and hours.
③ We will calculate the overtime pay, various allowances, pension insurance, healthy insurance, income tax, and resident tax. i.e.
④ We will make a payment table and make a confirmation. If there is a retired employee, we will make the taxation at source. Than, we will make a confirmation with your employee who is in charge of payroll.
⑤ We will delivery the payment details, payment table, taxation at source and other works. And we will also be the agent to do the payment to various financial institutions.
To learn more about our incorporation assistance and a range of services of payroll in Brazil, send us a message or call us at +81-3-5369-2930.