What Brazil employee benefits must you provide in 2026?
Brazil law mandates a 13th salary payment for every employee. That is one extra month of pay per year, on top of 30 days of paid leave and a constitutionally guaranteed vacation bonus. The FGTS severance fund adds another 8% of gross salary every month.
· Brazil guide
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Brazil sets a high statutory floor. Every employee gets 30 days of paid annual leave.
A 13th salary payment is mandatory. That is one full month of pay, split across two instalments each year.
The vacation bonus (Terco Constitucional) adds one third of a month on top of leave pay. INSS social security requires 20% from the employer.
FGTS deposits of 8% of gross salary accrue monthly into a government-held fund. The employee accesses it on termination.
What benefits must you provide Brazil employees by law?
The law sets a high floor. You must pay 30 days of paid annual leave plus a one-third bonus on top of leave pay.
A 13th salary is mandatory for every employee. INSS social security requires 20% from you and 7.5% to 14% from the employee. FGTS adds 8% of gross salary into the employee's government-held fund every month.
| Benefit | Minimum (2026) | Source |
|---|---|---|
| Paid annual leave | 30 days per year (after 12 months service) | CLT Art. 129 |
| Vacation bonus (Terco Constitucional) | One third of monthly salary added to leave pay | Constituicao Federal Art. 7 XVII; CLT Art. 142 |
| 13th salary (Decimo Terceiro) | One full month of salary per year, paid in two instalments | Lei 4.090/1962 |
| Sick pay (employer-paid) | First 15 days at full pay by employer; INSS pays from day 16 | Lei 8.213/1991 Art. 59-60 |
| Maternity leave | 120 days paid (INSS pays benefit) | CLT Art. 392; Lei 8.213/1991 Art. 71 |
| Paternity leave | 5 days paid; expanding to 20 days from January 2027 | Constituicao Federal Art. 7 XIX; Lei 15.371/2026 |
| INSS social security | 20% employer flat rate; 7.5% to 14% employee progressive rate | Lei 8.212/1991 Art. 22 |
| FGTS severance fund | 8% of gross salary deposited monthly into a government-held account | Lei 8.036/1990 Art. 15 |
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Map statutory minimums
List every mandatory benefit for the role. Start with annual leave, 13th salary, vacation bonus, INSS, and FGTS. These apply to every CLT employee from day one.
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Price the non-wage costs
Add INSS at 20% and FGTS at 8% to your salary budget. Then add the 13th salary as an additional month of pay spread across the year.
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Choose competitive add-ons
Health insurance, meal allowance, and food allowance are near-universal in urban Brazilian hiring. Decide which you will offer before the first offer goes out.
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Set up FGTS and INSS remittances
Monthly FGTS deposits and INSS remittances are due on fixed deadlines. Late payment triggers fines and interest. Your EOR handles this on your behalf.
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Plan for the 13th salary schedule
The first instalment is due between February and November, the second by 20 December. For employees joining mid-year, prorate the amount from the start date.
What does a competitive Brazil benefits package look like?
Beyond the law, competitive employers in Brazil add private health insurance (plano de saude), a meal or food allowance (vale-refeicao and vale-alimentacao), and a transport allowance (vale-transporte).
These extras are near-universal in urban hiring. Not offering them puts you at a meaningful disadvantage in Sao Paulo and Rio de Janeiro.
| Benefit | Typical mid-market cost | What it gets you |
|---|---|---|
| Private health insurance (plano de saude) | BRL 300 to 900 per employee per month | Access to private hospitals; dental option available |
| Meal allowance (vale-refeicao) | BRL 600 to 1,200 per employee per month | Pre-loaded card for meals; tax-exempt up to regulatory limits |
| Food allowance (vale-alimentacao) | BRL 300 to 600 per employee per month | Supermarket spend; separate from meal allowance |
| Transport allowance (vale-transporte) | Employee net cost capped at 6% of salary; employer covers the rest | Public transport costs; legally required if employee uses public transport |
| Life insurance (seguro de vida) | BRL 50 to 150 per employee per month | Death-in-service and disability cover |
| Dental insurance | BRL 50 to 150 per employee per month | Common add-on in tech and professional services |
| Profit sharing (PLR) | Negotiated via collective agreement | Annual or semi-annual distribution; tax-advantaged for employee |
Model your loaded benefit cost on the Employer Cost Calculator to see the full picture for a specific salary and package.
What social security contributions should you budget for?
Brazil does not have an employer-sponsored pension plan. The state runs INSS, the national social security system.
You pay 20% of gross salary. The employee pays a progressive rate from 7.5% to 14% depending on earnings.
Three things to understand about INSS:
- Flat employer rate. You pay 20% of gross salary on top of wages, with no ceiling for most employers. Some sectors use a payroll-tax substitution (desoneração da folha) that varies by industry.
- Progressive employee rate. The employee rate starts at 7.5% on lower-band earnings and rises to 14% on higher earnings. You deduct this from gross pay and remit it.
- FGTS is separate from INSS. The 8% FGTS deposit goes to a government-held account in the employee's name, not into INSS. Both are mandatory.
Some larger employers offer a private supplementary pension (previdencia privada) as a competitive add-on, typically matching up to 2 to 5% of salary. This is entirely above the legal floor and is a useful retention tool for senior hires. It is not legally required.
FGTS and the 13th salary: the Brazil non-wage cost that surprises most employers
FGTS and the 13th salary are the two biggest hidden costs for employers new to Brazil.
FGTS adds 8% of gross salary every month. The 13th salary adds one full month of pay every year. Together they raise your real cost of labour well above the headline salary.
FGTS (Fundo de Garantia do Tempo de Servico)
Every employer deposits 8% of the employee's gross monthly salary into a government-held fund (FGTS account) in the employee's name. The employee cannot access this money during employment. On termination without cause, the employer pays a 40% penalty on the accumulated fund balance on top of allowing withdrawal.
This makes every employee termination a known, quantifiable cost from day one. The fund accrues from the first month of employment.
13th salary (Decimo Terceiro Salario)
Brazilian law requires one extra month of salary per calendar year, paid in two instalments. The first instalment (half the amount) is due between February and November. The second instalment is due by 20 December. For employees who joined mid-year, the amount is prorated.
The 13th salary is subject to INSS and income tax deductions on the second instalment. It is not optional and cannot be contracted away.
Vacation bonus (Terco Constitucional)
When an employee takes annual leave, you pay the regular salary plus an additional one third. So 30 days of leave costs you the equivalent of 40 days of pay. This is a constitutional right and is built into every employment contract by default.
Paternity leave expansion: the 2026 to 2029 transition
Paternity leave in Brazil is changing. The current right is 5 days.
A new law (Lei 15.371/2026) expands this to 20 days in steps from January 2027 through to 2029. If you are hiring now, plan for the longer entitlement.
The current entitlement of 5 days is set by the Federal Constitution and ADCT Art. 10. Lei 15.371/2026, published in 2026, schedules a phased expansion:
- 2026: 5 days (current law, unchanged).
- January 2027: First expansion stage takes effect. Sources confirm the target is 20 days total by the end of the phased rollout in 2029.
The phased implementation means the entitlement changes during the tenure of employees you hire today. Employment contracts set via EOR automatically apply the current law at the time of the leave event. You do not need to amend individual contracts as each phase takes effect.
Maternity leave remains at 120 days. INSS pays the maternity benefit directly; the employer does not bear the salary cost for the maternity period beyond the standard INSS remittance.
Empresa Cidada programme: Companies enrolled in the Empresa Cidada programme can extend maternity leave to 180 days and paternity leave to 20 days now, in exchange for an income-tax deduction. This is optional but widely used by larger Brazilian employers and multinationals.
How does Teamed handle Brazil benefits for you?
Teamed becomes your legal employer of record in Brazil for from $599 per employee per month, with zero FX mark-up in any currency.
FGTS deposits, INSS remittances, 13th salary calculations, and the full CLT benefits stack run on one platform.
Real HR and legal experts handle the FGTS monthly deposits, INSS contributions, 13th salary instalments, and vacation bonus calculations. An actual person administers your employee's benefits, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Every employer cost passes through at cost, itemised on your monthly invoice.
Brazil's CLT is a good place to graduate from manual spreadsheets. The statutory benefit calendar is dense: FGTS every month, 13th salary twice a year, INSS remittances on a fixed cycle. Managing that manually works until it isn't worth the operational risk. Teamed runs it for you.
What is included in Teamed's standard EOR fee:
- FGTS deposits (8% monthly) and INSS remittances (20% employer rate)
- 13th salary calculation and instalment scheduling
- Vacation accrual tracking and vacation bonus (Terco Constitucional) administration
- Maternity and paternity leave processing
- Sick leave administration (15 days employer-paid, INSS handover from day 16)
- CLT compliance and annual leave tracking
What clients pass through at cost on the invoice:
- Private health insurance (plano de saude) premiums
- Meal and food allowances (vale-refeicao, vale-alimentacao)
- Supplementary private pension contributions
- Life insurance and dental premiums
The benefits package is bespoke to the client's hiring position. Teamed's job is to make the CLT mechanics frictionless and the numbers transparent.
Key sources: L&E Global Brazil employee benefits and ICLG Brazil employment law 2026.
Frequently asked questions
How many days of paid annual leave must Brazil employees receive?
Every employee gets 30 days of paid annual leave per year after completing 12 months of service. Leave pay includes a constitutional vacation bonus equal to one third of the monthly salary. So 30 days of leave costs you the equivalent of 40 days of pay.
What is the 13th salary in Brazil and is it mandatory?
The 13th salary (Decimo Terceiro Salario) is one full month of pay per year, paid in two instalments. The first half is due between February and November. The second half is due by 20 December. It is mandatory under Lei 4.090/1962 and cannot be excluded by contract.
How does FGTS work and what does it cost the employer?
FGTS is a government-held severance fund. You deposit 8% of gross salary into the employee's FGTS account every month. The employee cannot access the fund during employment. On termination without cause, you also pay a 40% penalty on the accumulated balance.
What are the INSS contribution rates in Brazil for 2026?
The employer pays 20% of gross salary as a flat INSS contribution. The employee pays a progressive rate starting at 7.5% on lower earnings and rising to 14% on higher earnings. You deduct the employee rate from gross pay and remit both contributions.
How long is maternity and paternity leave in Brazil?
Maternity leave is 120 days, paid via INSS (not by the employer). Paternity leave is currently 5 days, but Lei 15.371/2026 expands this in phases from January 2027 to 20 days by 2029. Employers enrolled in the Empresa Cidada programme can offer 20 days now in exchange for a tax benefit.
The 13th salary and FGTS catch most international employers off guard. They are not bonuses you can choose to pay. They are mandatory from the first month. The real cost of a Brazilian hire is the salary, plus a full month extra, plus eight percent into FGTS, plus twenty percent INSS. Know that number before you make the offer.
Every Brazilian hire costs you one extra month of salary per year before you add a single benefit. That is the 13th salary, and it is not optional.
FGTS adds 8% of gross salary monthly into a fund the employee draws on exit.
Know the real number before the offer goes out.
