Brazilian Employer Rates and Thresholds 2026

Brazilian employers pay a 13th salary and a one-third vacation bonus on top of the monthly salary, then social charges on that larger total. The table shows the rates for a commerce and services business in a medium-risk activity.

The workplace risk rate (RAT) is 1%, 2% or 3% by activity, adjusted by the employer's accident factor (FAP). Third-party contributions depend on the employer's FPAS code.

Employer costs for a full year, including the 13th salary, vacation bonus and the charges on them:

• A 13th salary based on full pay: half is advanced in a single payment between February and November, and the balance is due by 20 December.
• Up to 8 hours a day and 44 hours a week. Overtime is limited to 2 hours a day and paid at least 50% above the normal hourly rate. Establishments with more than 20 workers must record start and finish times.
• 30 consecutive days after each 12 months of employment (reduced if the employee had more than 5 unjustified absences), paid with at least one-third extra. With the employee's agreement, leave can be split into up to three periods: one of at least 14 days and the others of at least 5.
• 120 days of maternity leave without loss of job or pay. Companies that join the optional Empresa Cidadã programme extend it by 60 days, and paternity leave by 15 days on top of the standard 5.

• The employer has 5 working days to record the admission date, pay and any special conditions on the employee's work card (CTPS), which may be electronic. Fixed-term contracts are limited to 2 years, and a fixed-term contract extended more than once becomes open-ended.
• A probationary (experience) contract may not exceed 90 days, and it can be extended only once within that limit; a second extension turns it into an open-ended contract.
• 30 days for employees with up to 1 year of service, plus 3 days for each year of service with the company, up to a total of 90 days.
• Dismissal without just cause is permitted, but the employer must pay notice (or pay in lieu) and deposit a penalty of 40% of all FGTS deposits made during the employment, updated with interest, into the employee's FGTS account, plus accrued 13th salary and vacation.