For Employees It's More Than Just the Salary

Employees in Brazil receive a salary plus a myriad of benefits. Some of the benefits are required by law. Others are not mandatory but companies choose to pay them to entice new hires and keep existing talent.

The benefits that are mandated by law are the 13th salary (décimo terceiro), commuting expenses (vale transporte), Fundo de Garantia do Tempo de Serviço (FGTS), and time off (férias).

The 13th salary you’ll recall from this article. It’s an end of the year “bonus” that helps workers buy holiday gifts for their families and pay their taxes and bills in January.

Companies must pay their employees’ commuting expenses, although they can discount the amount by up to 6% of the employee’s salary. The payment is made at the beginning of each month.

FGTS gives employees financial protection in case they’re fired without cause. Each month employers deposit 8% of the amount of the employee’s salary in a separate bank account at Caixa Econômica Federal. The money can only be withdrawn at specific times - like when you’re fired without cause or purchasing a house.

After working for one year, employees can take up to 30 days off each year. On top of their salary, which is paid even when they’re not working, they also get an additional one-third of their monthly salary.

Most of the other benefits you hear about are voluntary. For example, a company might pay for an employee’s meals (vale refeição), health insurance, or school expenses. They might even have a profit sharing (PLR) incentive program.