Rain Rabbit

Common Benefits in Brazil

The Brazil Business

Updated

17 December 2013

Differently from what happens in many countries, in Brazil sometimes a good salary is not enough to keep a good employee. Learn what exactly Brazilians consider to be a good job and how your company can avoid staff turnovers.

It is a common sense that hiring in Brazil is expensive. It is usually said that an employee costs at least twice his salary due to fees and other legal costs applied to the hiring process. But besides these mandatory costs, there are also several benefits that Brazilian workers are somehow used to and that can make them think twice before accepting a job proposal.

With an annual unemployment record of 6%, Brazilians have received much more job opportunities than they would have 10 years ago and this has led companies to search for features that could attract good professionals and many times these features come along as benefits.

Besides paid vacations, FGTS, at least one meal for employees working 8 hours and the 13th salary, which are all mandatory, there are several benefits that, even though not mandatory, are taken into account when looking for a job.

All these benefits give a good idea of how expensive it is to hire and keep a good professional in Brazil.

Health Insurance

This is a strong weapon a company can use when hiring an employee. Especially if he is married and has kids. If we take into account the average salary of a Brazilian employee is of BRL 1200,00, affording a health insurance for the entire family can be totally out of reach.

Companies that give health insurance as a benefit usually extend this benefit to the employee's spouse and kids under 18. So this employee would save at least up to BRL 500,00 on health care, what would definitely make him think twice before leaving the job for another one that would pay him extra BRL 100,00.

Programa de Participação nos Lucros e Resultados

Programa de Participação nos Lucros e Resultados - or simply PLR -, is a result based bonus offered as a benefit by some companies. It usually corresponds to the sharing of an specific percentage of the annual or semiannual profit among the employees.

Participação nos lucros (or profit sharing) occurs when the employees are entitled with part of the company economic result, whether they are fixed or variable. Participação nos resultados (or result based on bonus) is related to pre-established goals and implies the achievement of goals already set previously.

Adopting this measure does not bring benefits only for the employees, but also to the company itself, as employees will feel motivated and more committed with the company's goals, it generates better organizational results through the partnership between company and employee and it also offers tax exemption for INSS, FGTS and IRRF.

Cesta Básica de Alimentos

Some companies give its employees an amount of money or even a box filled with items that are considered essential to the Brazilian diet, such as rice, beans, soy oil, sugar, salt and others.

Nowadays most companies provide a credit card that is only accepted in grocery stores and works as a financial aid to the monthly house expenses. Of course, this is a better option as the employee can choose what kind of products he really needs and what are the brands he wishes to buy from.

Still, it is very common to have employees illegally selling the content of this card instead of using it for its right purpose.

Scholarship

This is many times pointed out as the main reason why Brazilians shift jobs. Besides the perspective of achieving a better position in the company, it is also important to be able to qualify for this position. Several Brazilians would consider trading their jobs for one that would pay an inferior salary, but give them conditions to conciliate their studies.

Also, many companies offer financial aids or even afford the employee's school tuition. This attracts many young employees who are struggling to conciliate college and work, or those who simply can not afford higher education.

Childcare

Very common in call centers and companies who have many women among their employees, childcare provision is greatly taken into account. Many Brazilian women with little kids face several difficulties when trying to come back to the market, so it is crucial for them to have some financial support to help them affording childcare.

New Benefits

The previously mentioned benefits have a great result with young professionals who have just entered the market or workers who perform low paying jobs. But how can a company call the attention of a really good professional in Brazil?

Companies have rapidly adapted to this different kind of employee and have started to provide benefits that would be more in consonance with their life style.

In some Brazilian start-ups, for example, it is possible to find a room where the employees can relax, watch a movie or even play video game. Some others would provide indoor gym, a car or pay for the fuel the employee uses to go to the workplace and even provide high quality education for their kids.