Brazil’s employment ecosystem remains one of the most complex in LATAM — but also one of the most structured and employee-protective.
From payroll obligations to upcoming legal reforms, understanding where Brazil stands in 2025 (and where it’s headed in 2026) is essential for HR teams, global employers, and EOR providers alike.
Let’s unpack it:
Mandatory Benefits in 2025
Brazil’s labor law (CLT) outlines a rich package of benefits that employers must provide — here are the key ones:
- 13th-month salary – one extra monthly salary each year, paid in two parts (Nov & Dec).
- 30 days paid vacation – plus a 1/3 vacation bonus.
- FGTS – 8% monthly deposit into a severance fund, plus 40% penalty on balance if dismissal is without cause.
- Maternity (120 days) and Paternity (5 days) – extendable via Empresa Cidadã program.
- Transportation voucher – employers cover commuting costs beyond 6% of salary.
- Sick leave – employer covers the first 15 days; social security (INSS) covers the rest.
- Social security & taxes – employee contributions: 7.5–14%; employer: ~20%.
2025 focus: Brazilian authorities are reinforcing mental health and psychosocial risk management as part of workplace safety. Employers must now treat burnout and stress as occupational risks.
Compliance & Regulation Highlights
- Equal Pay Transparency (Law 14,611/2023) Companies with >100 employees must publish gender pay equity reports. Non-compliance triggers penalties and reputational risk.
- Remote Work Rules Employees working from home must have equipment and internet costs covered by the employer, and enjoy equal rights as on-site staff.
- FGTS Withdrawals New 2025 rule eases access to FGTS funds, allowing employees more flexibility to withdraw under specific conditions.
- Gig Worker Classification A landmark ruling expected in early 2026 may redefine the employment status of platform workers potentially increasing employer obligations.
What to Expect in 2026
- Mental Health Reform – New enforcement measures expected around psychosocial risk reporting and prevention.
- Pension & Benefit Reviews – The government is considering cost control reforms that could affect contribution ceilings.
- Pay Transparency Expansion – Gender pay equity reporting will tighten, especially for large employers.
- Talent Competition through Benefits – Flexible benefits, wellness programs, and hybrid perks will become major retention tools.
- Rise of HR Analytics – Data will guide benefits design and compliance reporting more than ever before.
Quadlux Insight
Brazil is both a challenge and an opportunity: its structured system provides predictability, but requires discipline and local expertise.
For 2025–2026, success means balancing compliance with creativity meeting every legal requirement while building modern, human-centric experiences that attract and retain top talent.
At Quadlux, we help companies navigate Brazil’s regulatory layers, align benefit strategies, and stay ready for what’s next
