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ARTICLE · 10 NOVEMBER 2016

Decrypting Brazil's Labor Environment

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With a mixture of emerging and booming economies, political uncertainty and extreme contrasts in business customs, the Americas can never be categorized as one homogeneous whole.

BrazilEmployment and HR
TMF Group
TMF Group
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With a mixture of emerging and booming economies, political uncertainty and extreme contrasts in business customs, the Americas can never be categorized as one homogeneous whole.

The Brazilian business environment is complex and requires companies to have a clear understanding of the local rules and regulations. Here we take a look at how HR & Payroll works in Brazil.

Social Security System

  • Companies are required to pay 20% of employees' gross salaries to finance the Brazilian Social Security System (INSS)
  • Other social security charges are levied on employers, depending on the company's activities, up to a maximum of 8.8% of payroll.
  • Employees also pay 8%-11% of their monthly salaries towards social security, which is withheld by the employer.

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