Mandatory Employee Benefits in Brazil
Brazil has one of the most protective labour frameworks in the world, governed by the Consolidation of Labour Laws (CLT) and the Federal Constitution. Every formally employed worker is entitled to a broad set of statutory benefits, and employer social charges are substantial—INSS, FGTS, work-accident insurance, and third-party levies together add roughly 36% on top of gross salary, before the 13th salary and vacation provisioning push the all-in cost higher still. The core mandatory benefits are summarised below.
13th salary (Décimo Terceiro)
An extra month's pay, split into two instalments (first by 30 November, second by 20 December); pro-rated for partial years.
Paid vacation + 1/3 bonus
30 calendar days of paid leave after 12 months of service, plus a constitutional bonus of one-third of monthly salary.
FGTS (severance fund)
Employer deposits 8% of gross monthly pay into the employee's FGTS account; wholly employer-funded.
INSS (social security)
Employer contributes ~20% of payroll; employee contributes 7.5%–14% (progressive). Funds pensions, disability, sickness, and maternity.
Transport voucher (Vale-Transporte)
Employer covers commuting cost above 6% of base salary; the employee funds up to 6%.
Mandatory benefit
What it involves
13th salary (Décimo Terceiro)
An extra month's pay, split into two instalments (first by 30 November, second by 20 December); pro-rated for partial years.
Paid vacation + 1/3 bonus
30 calendar days of paid leave after 12 months of service, plus a constitutional bonus of one-third of monthly salary.
FGTS (severance fund)
Employer deposits 8% of gross monthly pay into the employee's FGTS account; wholly employer-funded.
INSS (social security)
Employer contributes ~20% of payroll; employee contributes 7.5%–14% (progressive). Funds pensions, disability, sickness, and maternity.
Transport voucher (Vale-Transporte)
Employer covers commuting cost above 6% of base salary; the employee funds up to 6%.
Social Security (INSS) & FGTS
Two schemes form the backbone of Brazil's statutory protection. INSS (Instituto Nacional do Seguro Social) is the national social security system, funding retirement, disability, sickness, and maternity benefits. FGTS (Fundo de Garantia do Tempo de Serviço) is a government-managed severance fund the employee can draw on when dismissed without cause, when buying a home, or in retirement.
INSS (social security)
~20% of payroll (uncapped)
7.5%–14% progressive, capped at the INSS ceiling (R$8,157.41 in 2025)
FGTS (severance fund)
8% of gross salary
None
Work-accident (RAT) + third-party levies
~1%–8% depending on sector risk and Sistema S
None
Contribution
INSS (social security)
Employer
~20% of payroll (uncapped)
Employee
7.5%–14% progressive, capped at the INSS ceiling (R$8,157.41 in 2025)
Contribution
FGTS (severance fund)
Employer
8% of gross salary
Employee
None
Contribution
Work-accident (RAT) + third-party levies
Employer
~1%–8% depending on sector risk and Sistema S
Employee
None
What INSS covers
In return for contributions, insured workers receive the state retirement pension (aposentadoria), sickness and disability benefits (auxílio-doença and aposentadoria por invalidez), maternity pay (salário-maternidade), and survivor's and imprisonment allowances. Because these benefits are capped at the INSS ceiling, higher earners often value the private pension and insurance top-ups employers add.
13th Salary & Vacation Bonus
Unlike many markets, Brazil's year-end bonus is statutory, not discretionary. The 13th salary (décimo terceiro) equals one month's pay and is paid in two instalments—the first between February and 30 November, the second by 20 December. Employees who have worked less than a full year receive a pro-rated amount (1/12 per month worked, counting any month of 15+ days).
30 Days' Vacation + One-Third Bonus
After 12 months of service, employees earn 30 calendar days of paid vacation. On top of the normal vacation salary, the Constitution requires an extra abono of one-third of the monthly salary, paid at least two business days before the leave begins. Vacation may be split into up to three periods, one of which must be at least 14 days.
Profit Sharing (PLR)
Profit sharing—Participação nos Lucros e Resultados (PLR)—is governed by Law 10.101/2000. It is voluntary at federal level but becomes binding when set out in a collective bargaining agreement or an internal programme negotiated with the union. PLR is a popular, tax-efficient reward (it is exempt from INSS and FGTS and taxed on a separate, favourable schedule) and is usually paid in one or two annual instalments at least 90 days apart.
Transport, Meal & Food Vouchers
Vouchers are a defining feature of Brazilian pay packages. Some are statutory; others are made mandatory by the applicable collective bargaining agreement (CBA) and are expected by candidates as standard.
Vale-Transporte (Transport Voucher)
The transport voucher is a legal entitlement covering the employee's commuting costs on public transport. The employee funds up to 6% of their base salary; the employer pays any commuting cost above that threshold. It is provided as a card or credit, not cash, and cannot be swapped for money.
Vale-Refeição & Vale-Alimentação (Meal & Food Vouchers)
Meal vouchers (vale-refeição) pay for ready-to-eat meals at restaurants and canteens, while food vouchers (vale-alimentação) cover groceries at supermarkets. Though not universally required by federal law, they are extremely common and frequently mandated by CBAs. Employers that register under the Workers' Food Programme (PAT) gain a corporate income tax deduction of up to 4% on qualifying food-benefit spend.
Supplementary Benefits & Allowances
Beyond the statutory minimum, employers competing for skilled talent—especially in technology, finance, and multinationals—typically layer on the following non-mandatory benefits.
Private Health & Dental Insurance
Private health insurance (plano de saúde) is the single most valued supplementary benefit in Brazil and is close to a de facto standard for professional roles. Employers usually fund all or most of the premium, often extending cover to dependents, and add a separate dental plan (plano odontológico). Private health cover typically adds around 5%–10% to employment cost depending on the plan tier.
Life Insurance & Private Pension
Group life insurance (seguro de vida) is a common, low-cost addition, and larger employers increasingly offer a supplementary private pension (previdência privada, typically a PGBL or VGBL plan) to help higher earners save above the capped INSS pension.
Childcare, Wellness & Flexible Working
A childcare allowance (auxílio-creche) is required for mothers of young children under many CBAs and is widely offered. Other popular perks include gym or wellness stipends, mental-health support, home-office allowances, extended parental leave, and hybrid or remote working—valued retention tools in Brazil's competitive tech market.
Minimum Wage & Statutory Leave Context
The national minimum wage (salário mínimo) and statutory paid time off set the floor that every compensation package must clear. Note that several states publish their own regional minimum floors above the federal figure, and CBAs frequently set higher category minimums. The key statutory reference points are summarised below.
National minimum wage
R$1,518/month in 2025, rising to ~R$1,621/month from January 2026 (state and CBA floors may be higher)
Annual (vacation) leave
30 calendar days after 12 months, plus a one-third salary bonus
13th salary
One extra month's pay per year, in two instalments
Maternity leave
120 days paid (up to 180 days for Empresa Cidadã companies), reimbursed via INSS
Paternity leave
5 days (up to 20 days for Empresa Cidadã companies)
Item
Statutory minimum
National minimum wage
R$1,518/month in 2025, rising to ~R$1,621/month from January 2026 (state and CBA floors may be higher)
Annual (vacation) leave
30 calendar days after 12 months, plus a one-third salary bonus
13th salary
One extra month's pay per year, in two instalments
Maternity leave
120 days paid (up to 180 days for Empresa Cidadã companies), reimbursed via INSS
Paternity leave
5 days (up to 20 days for Empresa Cidadã companies)
Conclusion
Ensure your compensation and benefits packages in Brazil are competitive, compliant, and aligned with local expectations. With Glints as your partner, you gain regional expertise that keeps your offerings attractive to top talent while adhering to Brazil's CLT, social security, and FGTS requirements.
Book a call with our team to explore how we can support your compensation and benefits strategy for a stronger, more compliant workforce in Brazil.
Social Security (INSS) & FGTS