In certain cases, for instance, when the commute costs are under 6% of the salary, there would be no reason to provide these vouchers. The amount beyond 6% is paid by the employer. Employees who must commute to and from work by public transport are entitled to a transportation voucher, provided by the company if the cost of transportation surpasses 6% of their monthly wages. Available in digital form (pre-paid rechargeable cards). The vacation bonus equals one-third of the employee’s monthly compensation and must be paid two days in advance of the employee’s time off. Vacation bonusĪlong with a generous yearly holiday entitlement of 30 days, employers must also provide employees with a vacation bonus on top of their regular pay.

In addition, companies must pay a penalty equal to 40% of the sum already in the fund to employees terminated without a cause.Įmployees can withdraw the FGTS when they retire, are terminated without cause, suffer a serious illness, or need money to purchase a home, amongst others. This account is used for the Severance Pay Fund (FGTS), which employees are entitled to at the end of employment unless the employment is terminated with just cause. A new account is added for the employee with every new job. FGTSĮvery employer must deposit 8% of the monthly salary of each of the employees into a special account opened with the Federal Savings Bank. Employees who are dismissed are also entitled to the pro-rated equivalent of their 13th month salary. Employees may request one-half to be paid along with their vacation bonus. The 13th salary can be paid as a lump sum at the end of December or divided into two equal payments: (1) between February and November and (2) by the 20th of December. Those who join the company later in the year are entitled to a proportional fraction of the 13th salary (monthly salary divided by 12 and multiplied by months worked in the year). Employers must provide this benefit to all employees who have worked all 12 months of the year. In Brazil, it’s mandatory to provide employees with an additional month’s salary at the end of the year, which is called the 13th month salary.

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