Salary Calculator
Brazil
With Native Teams’ payroll calculator, you can estimate your salary and understand the associated costs in 85+ countries worldwide. Whether you want to determine the cost of hiring individuals in different regions or calculate your own salary in your home country, our payroll calculator can help.
The salary estimation process is simple - choose the country of employment, add details about your employment status, and fill in your salary details. Our calculator will instantly generate a detailed breakdown of your net and gross salary and provide insights into your tax liabilities, healthcare and pension contributions, and other social security deductions specific to your country.
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How does the salary calculator for Brazil work?
Our payroll calculator for Brazil will help you estimate your net income in the country based on your gross salary and all the mandatory deductions required by the law.
The calculation starts by filling in your gross salary, from which the calculator deducts a progressive income tax rate. Then, it applies social security contributions (INSS), which are deducted from the employee’s salary at a progressive rate, depending on the salary.
Additionally, the calculator also considers employer contributions, including INSS, FGTS, and other mandatory costs. After applying all the mandatory deductions, the calculator generates the net salary, which is the amount the employee receives after taxes and contributions.
What is the salary cost in Brazil?
The total cost of salary in Brazil consists of multiple components applicable to both employees and employers.
The calculation starts with the gross salary, which is the amount before any taxes and deductions are applied. The calculator will first apply the employee’s part of deductions, including an income tax rate ranging from 0% to 27.5%, depending on the income level, as well as social security contributions (INSS), which are also calculated progressively based on income.
Employers also pay contributions to the employees’ salaries, including social security contributions (INSS) of 20%, severance fund deposit (FGTS) of 8%, work accident insurance ranging from 1% to 3%, and other contributions to third-party organisations.
How much tax do you pay in Brazil?
All employed individuals in Brazil are subject to an income tax, which is deducted from their salaries by their employers and paid to the tax authorities. Brazil uses a progressive tax system, meaning that higher salaries are taxed at higher rates. The current income brackets are:
-Income up to 2,259.20 BRL: Tax rate of 0%
-Income from 2,259.21 BRL to 2,826.65 BRL: Tax rate of 7.5%
-Income from 2,826.66 BRL to 3,751.05 BRL: Tax rate of 15%
-Income from 3,751.06 BRL to 4,644.68 BRL: Tax rate of 22.5%
-Income over 4,644.69 BRL: Tax rate of 27.5%
*Please note that these rates can vary based on legislative changes.
What are the mandatory employee benefits in Brazil?
Brazilian employers are required to provide several mandatory benefits to ensure employees’ financial and social security. This includes social security contributions, pensions, healthcare coverage, and unemployment benefits.
In addition to this, employees must contribute to Brazil’s Severance Indemnity Fund (FGTS), which can be accessed in cases of termination without just cause. Employees are also entitled to 30 days of paid annual leave after 12 months of continuous employment, along with an additional vacation bonus equal to one-third of their monthly salary, paid maternity/paternity leave, and other benefits.
Are there any other benefits or additional expenses?
In addition to the mandatory benefits required by Brazilian labour law, many employers offer supplementary benefits for their team members. These additional benefits enhance employee satisfaction and allow employers to attract top talent to their organisations.
Private health insurance is one of the most commonly provided extra benefits, covering medical, dental, and vision care. This benefit is highly valued by employees and often extended to their dependents.
Many employers also offer meal and food vouchers that employees can use in supermarkets and restaurants, which helps offset the cost of daily meals.
Finally, Brazilian employers also offer benefits like transportation vouchers for employees who commute, education assistance, gym and wellness programmes, and even childcare stipends for additional support.
What is the difference between gross and net in the Brazil salary calculator?
In the Brazilian salary system, gross salary and net salary represent two different figures, and understanding the difference is important when calculating the actual take-home pay.
The gross salary is the total amount an employee earns before any deductions are made. This includes the base salary agreed upon between the employer and the employee and may also include additional compensation, such as overtime, bonuses, and others.
The net salary is the amount the employee actually takes home after deductions are made from the gross salary. These deductions typically include taxes, social security contributions, and other mandatory benefits like severance funds.
In short, the gross salary is the full salary agreed upon before deductions, while the net salary is the take-home pay after all the deductions have been applied.
How can Native Teams help with employment, salary and taxes in Brazil?
Native Teams is your dedicated partner, providing an all-inclusive solution to help you manage salaries, taxes, and deductions in Brazil. Our solution is designed to simplify your payroll management while ensuring full legal compliance with Brazil’s labour laws.
Our professional teams of tax and legal experts are at your service, providing the necessary support to accurately calculate salaries, fulfil your tax obligations, and administer employee benefits in Brazil. Native Teams will help you eliminate administrative and compliance worries from your work so you can enjoy the peace of mind that all your legal obligations are met effectively.
