National minimum wage in detail
The minimum wage in Brazil depends on location and professional category. There is a federal minimum wage (Presidential Decree no. 9661/2019 regulating Law no. 13152/2015), which applies by default if there are no specific rules in the relevant collective bargaining agreement or in state laws. The federal minimum wage is annually adjusted for inflation, and is currently BRL 998 (EUR 237.95) per month. Employees also have the right to 30 days’ paid holiday and a 13th month bonus. As the trade unions also represent non-unionised workers, most workers are covered by an annual CBA providing a minimum wage above the federal rate. In addition, some states have their own minimum wages, which apply to designated professional categories. These vary from one state to another and only apply if there is no applicable CBA for the category. The states that have regional minimum wages are Ceará, Paraná, Rio de Janeiro, Rio Grande do Sul, Santa Catarina and São Paulo. Note that in the above chart, we have taken account of paid holiday and the 13th month bonus although those elements are not paid out each month to employees. The figure also does not account for total payroll costs to employers. For example, the payments employers make to the Fundo de Garantia do Tempo de Serviço (FGTS) are not included.
Author: Veirano Advogados
Date: March 2019
Note: For specific advice on any particular issue, please consult the relevant firm. The law is stated as at March 2019.