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Basic Economic Summary

Brazil is classified as a newly industrialized country with the largest global wealth share in South America. With being an advanced emerging economy the country is the 12th largest GDP in the world by nominal and 8th by PPP measures. Brazil's diversified economy includes industries such as agriculture, industry, presence in international financial and commodities markets, and a wide range of services that contribute significantly to the Brazillian GDP.


  • Local Languages: Portuguese, Spanish, German
  • Capital: Brasilia
  • Major Economic Hubs: Sao Paulo, Rio de Janeiro, Salvador, Fortaleza
  • Currency: Brazilian Real (BR)
  • Population: 214 million
  • Time Zone: UTC−2 to −5
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): $7,010 (2021)
  • Exchange Rate (BR/USD): 0.18
  • PISA Ranking (2018): 66

*the data are subject to change on a yearly basis

Local Universities

Top Local Universities

University Rankings
Universidade de São Paulo USP Ranking in Brazil: 1

World Ranking: 69

Universidade Estadual de Campinas UNICAMP Ranking in Brazil: 2

World Ranking: 231

Universidade Federal do Rio de Janeiro Ranking in Brazil: 3

World Ranking: 267

Universidade Estadual Paulista Júlio de Mesquita Filho Ranking in Brazil: 4

World Ranking: 308

Universidade Federal de Minas Gerais UFMG Ranking in Brazil: 5

World Ranking: 364

You can find more details here for top-ranked universities in Brazil.

Salary Data

Average Salary of Jobs (Per Month)

Job Title Salary Range (in BRL) Salary Range (in USD)
Technical Product Engineer 3,710 - 12,800 735.10 - 2536.21
Software Developer 4,040 - 14,000 800.49 - 2773.98
Data Analyst 4,110 - 12,100 814.36 - 2397.51
UX Designer 3,200 – 9,420 634.05 - 1866.49
Project Manager 4,920 – 15,700 974.86 - 3110.82
Sales Executive 7,110 – 22,600 1408.79 – 4478.00
Accountant 2,900 - 9,240 574.61 – 1830.83

More information about average salaries in Brazil can be found on SalaryExplorer.

Talent Sourcing Tips


Employer Payroll Tax

The social security benefits due by the employer are calculated at a fixed flat rate of 20 or 22.5% depending on the industry. 

Employees’s monthly social security contributions is calculated at a maximum rate of 11% irrespective of the base salary and is capped to BRL 671.12. Below is the tax rate table:

Contribution Salary in BRL Maximum Salary in BRL Social Security Rate Ceiling Contribution Amount
0 1,830.29 8 -
1,830.29 3,050.52 9 -
3,050.52 6,101.06 11 671.12

Income tax is levied annually as follows:

Rate Annual Salary Level in BRL
Exempt 0 - 1,903.98
7.5 1,903.98 - 2,826.65
15.00% 2,826.66 - 3,751.05
22.50% 3,751.05 - 4,664.68
27.5 4,664.68 - above

More information on income taxes levied can be found here.

Minimum Wage & Payroll

Minimum Wage

The national minimum wage set by law is 1100 Brazilian real per month.

Payroll Cycle

Workers are paid on a monthly basis.


13th month salary

Employees are paid an amount equal to one month’s salary in two parts in November and December. Pro-rated 13th month salary is also due upon termination.

Employee stock options

Employee stock options are recognized in Brazilian law and are regulated by Article 168 of Law 4,404/76. In Brazil, share option plans are more popular with closely held corporations and listed companies, especially large companies. 

It is possible to grant different types of options under the same plan due to the lack of legislation providing otherwise. However, it is not recommended to grant options of different natures under the same plan, as there is a risk that tax authorities will consider all options are part of the employees’ compensation. 

You may learn more about stock options in Brazil here.

Working Hours & Statutory Leave

Working hours

The maximum working hours in Brazil is 40 to 44 hours a week depending on whether an employee works for 5 days or 6 days in the week.  

Overtime pay

Overtime is permitted in Brazil for a maximum of 2 hours per day. It is paid at 150% the rate of the normal salary and 200% on Sundays or public holidays. 

Public Holidays

There are a total of 13 public holidays in Brazil. The list of public holidays can be found here.


Annual Paid Leave

Workers are entitled to 6 working days of leave after completing one year of employment. There is an increase by 2 days every year for the next three years of employment, until the duration of annual leave is 12 days. As of the fifth year, the employee is entitled to 14 days of vacation. For each additional group of 5 years, another 2 years are added. Employers should pay 25% of the salary earned during vacation period.

Sick Leave

In Brazil, upon submission of medical certificate, the first 15 sick days are paid off by the employer and further days off are paid through fixed rates by National Institute of Social Security (INSS).

Parental Leave

  • Maternity Leave

Paid Maternity leave of about 120 days is given to a pregnant mother. An employer is able to grant another 60 days of paid maternal leave and can recover the amount from tax benefits granted by the federal government.

  • Paternity Leave

Male employees are entitled to 5 days of paid paternity leave. An employer is also able to grant another 15 days of paid paternity leave and recover the amount from tax benefits granted by the government. 

Bereavement Leave

Employees are entitled to 2 days of bereavement leave in the event of death of a parent, spouse, child, sibling or dependent.

Training Leave

On collective agreement, an employee may be suspended for a period of 2 to 5 months for training purposes.

Offboarding & Termination

Termination Process

Termination of employment must take place in writing and can take place any time as long as sufficient notice is given.

Notice Period

Employees in Brazil are required to serve a 30 days notice period before leaving their employment for the first year of their employment. The notice period will be increased by 3 days per year after the first to a limit of 90 days.

Severance Pay

The severance pay is calculated for employees as equal to one month’s wages for every year employed

Probation period

The maximum probation period in Brazil is 90 days.


Mandatory health benefits must be provided by the employers via social security contributions.  Universal healthcare coverage is provided on a decentralized regional and local basis with coordination by Brazil's Unified Health System. 

Contributions from the employee’s salary are taken as a part of social security contributions that range anywhere between 8% - 11% depending on the salary amount by employees and 20% - 22.5% by the employer (depending on the industry's sector).  

This covers health insurance, life insurances, and other insurance (as per the agreement between the employer and employee).


The VAT rate varies between 17 to 20% depending on the state. For more information on the VAT on Sales and Services rate, read here.

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