Brazil’s Minimum Wage Laws

We often get asked how much it costs to run a business in Brazil. The answer, like most things legal, depends. But one thing’s for certain - you’ll have to pay your employees. So you’ll want to keep salaries in mind when creating a budget.

Brazil has a national minimum wage that increases slightly every year. The calculation is based on inflation as well as the results of the previous two years’ gross domestic product. As of February 2020, the national minimum wage is R$1,045 per month (approximately US$179).

But that number acts solely as a minimum threshold. That’s because each state can determine its own minimum wage. Cost of living varies throughout the country as do government economic strategies, for example.

As you can see here, states in the Southeast and South don’t follow the national amount. In São Paulo, the financial center of the country, the minimum wage is R$1,163 (approximately US$199).

The minimum wage can also be different for each profession. Job-specific minimum wage standards are generally set by unions or state laws. For example, a general agent must earn at least R$1,706 (approximately US$293).

If you’re thinking about starting a business in Brazil, take the minimum wage as a guide to know how much cash you’ll need to successfully operate. Remember the minimum is just that - it’s a floor. It’s not to say you can’t (or shouldn’t) pay your employees more.