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Taxes in Brazil

Employer
20.00 %

Public Pension Fund (INSS)

8.0 %

Severance Fund (FGTS)

5.8 %

Education contribution, INCRA, SENAI, SESI and SEBRAE contributions

1-3 %

Accident Insurance

13th Pay - Also known colloquially as a 'Christmas Bonus', this payment is an amount equal to one month’s pay. The first half of this payment must be paid any time up until the 30th of November, and the other half up until the 20th of December. The pro-rated 13th-month pay is also due upon termination. The 13th-month payment is a legally mandated benefit and not part of the base pay. During negotiations with candidates, it is important to clearly state what pay is being offered and whether it is inclusive or exclusive of the 13th-month payment. The Christmas Bonus is calculated at 8.33% of the base annual pay.

Vacations Bonus - Professionals in Brazil are entitled to 30 calendar days of holiday per year after every 12 months of service, and the employee must be paid 1/3rd of a month’s pay as a Vacations bonus. Holiday pay and holiday bonus payments are pro-rated upon termination. The Holiday bonus is calculated at 2.77% of the base annual pay.

Employee payroll taxes
8-11 %

Social Security (Max of 482.93 BRL)

Employee income taxes

0 (Up to 1903.98 BRL)

7.50% (1903.98-2826.65 BRL)

15.00% (2826.65-3751.05 BRL)

22.50% (3751.05-4664.68 BRL)

27.50% (4664.68 BRL & above)

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