Get Live Quote 
Phone, internet, coworking, and software subscriptions can be reimbursed tax-free when they are business-related. Claims must be supported by a tax invoice or receipt that clearly shows when and where you paid, the amount and currency, what service was purchased, and, where required, the employee’s name.
Employment in Brazil
Minimum wage
BRL 18,216
Employer costs
34.8–36.8%
Employee contribution
7.5–14%
Employee tax
0–27.5%
In Brazil, the reference annual minimum wage is BRL 18216. Employers typically face significant statutory on-costs, including social security at 20%, a severance fund contribution at 8%, and an additional social contribution at 5.8%, plus work accident insurance. Employees contribute to social security on a progressive basis, with overall worker contribution rates ranging between 7.5–14%. Income tax is applied using progressive rates up to 27.5%, with tax withheld at source.
Onboarding time
We can help you get a new employee started in Brazil fast. The minimum onboarding time we need is only 48 hours. Our team ensures fast, compliant employee onboarding and payroll processing. The onboarding timeline starts once the employee submits all required information via the NEO platform.
Payroll
Brazilian payroll involves multiple employer social contributions and a progressive employee social security contribution. The figures below outline the main statutory components that typically apply to salaries processed through payroll.
Employer payroll contributions
| Component | Rate |
|---|---|
| Social security employer contribution (INSS) | 20% |
| Severance pension (FGTS) | 8% |
| Work accident insurance | Not specified |
| Social contribution | 5.8% |
Employee payroll contributions
| Component | Rate | Cap |
|---|---|---|
| Social security worker contribution (INSS) | Up to 42.5% (progressive) | BRL 10906.2 per year |
Minimum wages
Annual minimum wage
BRL 18216
Working hours
Standard working time in Brazil is typically based on a weekly cap, with work concentrated on weekdays. Employers should structure schedules to respect these limits unless a different arrangement is clearly agreed in the contract and compliant with local law.
Standard working hours
44 hours per week, Monday to Friday
Leave
Brazilian leave policies distinguish between general paid time off and sick leave, with specific rules for medical certification. The data below reflects standard policy settings rather than the full scope of statutory entitlements.
Leave policies
| Leave type | Accrual | Medical certificate |
|---|---|---|
| Paid time off | Not specified | Not required |
| Sick leave | 15 days per year; no carry-over | Required after 3 days |
Public holidays
Brazil observes a mix of national public holidays, including civic, religious, and cultural observances. Below are the nationwide public holidays for 2026 that employers should plan around for scheduling and payroll purposes.
Public holidays 2026
| Date | Holiday |
|---|---|
| 2026-01-01 | Universal Fraternization Day |
| 2026-04-03 | Good Friday |
| 2026-04-21 | Tiradentes' Day |
| 2026-05-01 | Worker's Day |
| 2026-09-07 | Independence Day |
| 2026-10-12 | Our Lady of Aparecida |
| 2026-11-02 | All Souls' Day |
| 2026-11-15 | Republic Proclamation Day |
| 2026-11-20 | National Day of Zumbi and Black Awareness |
| 2026-12-25 | Christmas Day |
Expenses
In Brazil, expenses must be submitted and approved in the same calendar year they are incurred, and all items require client review and approval. Expenses submitted without the necessary documentation will be treated as taxable, so employees should keep complete records for every claim.
Submission deadlines
| Expense type | Action and deadline |
|---|---|
| Current year's expenses | Submit and approve within the same calendar year |
| Prior year's expenses | Not accepted; must be submitted and approved in the year incurred |
Communication and workspace
- Phone subscription – Non taxable with a tax invoice showing date, amount, provider, description, and employee name
- Internet subscription – Non taxable with a tax invoice showing date, amount, provider, description, and employee name
- Coworking – Non taxable with a tax invoice showing date, amount, provider, description, and employee name
- Software subscription – Non taxable with a tax invoice or receipt showing date, amount, provider, and description of the service
Equipment and supplies
Laptops, office equipment, office supplies, and postal charges are reimbursable on a non-taxable basis when used for business. Employees must provide a tax invoice or receipt that includes the date, amount, merchant, and a clear description of the purchase, and in some cases the employee’s name.
- Laptop – Non taxable with a tax invoice showing date, amount, merchant, description, and employee name
- Office equipment – Non taxable with a tax invoice showing date, amount, merchant, description, and employee name
- Office supplies – Non taxable with a tax invoice or receipt showing date, amount, merchant, and description
- Postal charges – Non taxable with a tax invoice or receipt showing date, amount, merchant, and description
Travel
Most travel-related expenses, such as visas, accommodation, flights, local transport, and fuel, are non taxable when properly documented. Mileage claims are an exception and are treated as taxable income because no supporting documents are required.
- Visa fee – Non taxable with a tax invoice or receipt showing date, amount, merchant, description, and employee name
- Accommodation – Non taxable with a tax invoice, receipt, bank statement, or hotel booking confirmation showing payment details, date, amount, merchant, description, and employee name
- Flight – Non taxable with a tax invoice, receipt, or ticket/itinerary containing all mandatory information plus date, amount, merchant, description, and employee name
- Taxi or rideshare – Non taxable with a tax invoice, receipt, rideshare receipt, or bank statement showing date, amount, and merchant
- Train – Non taxable with a tax invoice or receipt showing date, amount, merchant, and description
- Public transport – Non taxable with a tax invoice or tickets showing date, amount, and description
- Car rental – Non taxable with a tax invoice, receipt, or bank statement showing date, amount, merchant, and description
- Fuel – Non taxable with a tax invoice or receipt showing date, amount, merchant, and description
- Mileage – Taxable; no documentation required
- Parking or toll fees – Non taxable with a tax invoice, receipt, bank statement, or parking ticket showing date, amount, and merchant
Meals and entertainment
Business-related meals and groceries can be reimbursed on a non-taxable basis when they are properly documented. This includes everyday meals, groceries, and meals with clients or partners, provided the supporting documents clearly show when and where the expense occurred and the amount paid.
- Breakfast, lunch and dinner – Non taxable with a tax invoice, receipt, or bank statement showing date, amount, and merchant
- Groceries – Non taxable with a tax invoice or receipt showing date, amount, merchant, and description
- Meal with client or partner – Non taxable with a tax invoice, receipt, or bank statement showing date, amount, and merchant
Other expenses
Training, courses, books, promotional items, and certain medical costs incurred for business reasons are generally reimbursed on a non-taxable basis. These claims must be backed by a tax invoice or receipt that includes the date, amount, merchant, description of the purchase or service, and the employee’s name where specified.
- Training, courses, and books – Non taxable with a tax invoice or receipt showing date, amount, merchant, description, and employee name
- Promotional items – Non taxable with a tax invoice or receipt showing date, amount, merchant, description, and employee name
- Medical cost – Non taxable when incurred for business reasons, with a tax invoice or receipt showing date, amount, merchant, description, and employee name
Per diem
Per diem is not used as an expense category in Brazil. Instead, employees must submit actual travel-related costs, such as meals and transportation, under the relevant expense types, each supported by an electronic invoice or equivalent documentation.
Bonuses
Bonuses in Brazil include both contractual and discretionary payments, such as incentives and commissions, and are taxed as regular income. They are subject to applicable social security contributions and progressive income tax, with withholding at source, which may increase the tax taken in pay periods that include a bonus.
Allowances
In Brazil, some allowances are mandatory while others are offered at the employer’s discretion, and their tax treatment varies. Clients who want to gross up allowances so employees receive a fixed net amount can arrange this by raising a support ticket, with the employer covering the related taxes and social security contributions.
Allowances overview
| Type | Status | Taxation | Limitations |
|---|---|---|---|
| Meal allowance | Mandatory | Non taxable up to BRL 40 per day | BRL 40 per business day, prorated by days worked; must be provided via meal card or voucher; top-ups are taxed |
| Daycare allowance | Mandatory | Not taxed | Mandatory for companies with more than 30 female employees; only for breastfeeding employees |
| Work from home allowance | Optional | Taxable | May be offered at the employer’s discretion to one or more employees; no discrimination applies |
| Gym membership | Optional | Taxable | May be offered at the employer’s discretion to one or more employees; no discrimination applies |
| Medical insurance | Optional | Taxable | May be offered at the employer’s discretion to one or more employees; no discrimination applies |
| Life insurance | Optional | Taxable | May be offered at the employer’s discretion to one or more employees; no discrimination applies |
| Wellness | Optional | Taxable | May be offered at the employer’s discretion to one or more employees; no discrimination applies |
| Relocation | Optional | Taxable | May be offered at the employer’s discretion to one or more employees; no discrimination applies |
| Utilities | Optional | Taxable | May be offered at the employer’s discretion to one or more employees; no discrimination applies |
Termination
Brazilian employment contracts typically include both a probation period and a minimum notice period for termination. The exact terms can vary by contract, but there are common baseline parameters to keep in mind.
Termination parameters
| Policy | Standard |
|---|---|
| Notice period | At least 30 days |
| Probation period | Up to 90 days |
