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Annual Leave Entitlements in Brazil: A Guide for Overseas Employers

Looking to hire an employee in Brazil? Here’s what you need to know about leave entitlements there.

One of the questions that your employees on foreign assignment will have is how much leave or holiday time they receive.  Because every country has their own statutory leave entitlement, the number of days may be more or less than in your home country.

An employee of a client of ours is on assignment in Brazil and wanted to know how leave is calculated in there.  Here is how we addressed their question:

Annual Leave in Brazil

As with any foreign assignment, the amount of leave is up to the employer as long as it meets statutory minimums.  In Brazil, an employee is entitled to 30 days of annual leave, but only after they have completed 12 months of work for the employer.

There are a few specific rules in Brazil around leave:

  • The annual leave must be taken within 10 months after it accrues
  • The 30 days can be split into three periods, with one at least 14 days
  • No period of leave can be less than five days
  • The employee can opt to take only 20 of the 30 days, plus 10 days of additional salary (pecuniary installment). The 20 days can be split into two periods of 14 and 6 days.
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Effect of Termination on Leave Payment in Brazil

If the contract comes to an end or the employee is otherwise terminated, they will receive a vacation leave payment.  This payment is calculated at 11.11% per month of the annual salary and bonuses.

Employer Penalty for Employee Leave Accumulation

If for some reason the employee does not take their annual leave and accumulates two periods in a row, the employer would have to pay a double rate for the accumulated leave.

The Shield GEO Solution

Calculating leave according to statutory minimums and local rules is one way that Shield GEO supports our clients with employees on assignment.  A company that does not meet the requirements can face costly penalties, so we make sure they have the most up to date information.

Shield GEO makes international employment simple, and our in-country experts and local partners handle every aspect of payroll, tax and immigration requirements.  This allows your HR department to focus on employee management and assignment success.

 Need more information about employing in a new country? Learn more about:

Looking to hire an employee in Brazil? Get in touch.

The information in this article is subject to changes in local legislation.

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