Average Salary in Brazil

Table of Contents

How much money does an employee in Brazil earn?

In Brazil, the average monthly salary for an employee is roughly 8,560 BRL.

In terms of employment, there are roughly 96 million employed out of the 152 million that make up its population. 26% of them work in agriculture while 9%, work in the industry.

In order to become employed, you must have a diploma issued by a technical school or equivalent education institution recognized by Ministério da Educação (Ministry of Education).

Salary Distribution in Brazil

Salary Scale

Brazilian salaries start at 2,170 BRL per month. This salary is for starting grade level positions. Most employees are guaranteed a minimum monthly salary of 1,200 BRL after taxes, regardless of their contract.

The highest-paying positions are in the oil industry or with international organizations such as firms that do business in China or Portugal where local salaries are increased to match foreign counterparts.

For example, working at an oil company may net you 6,000 BRL/month before taxes while working in China might net you 8,000 RMB/month (Chinese currency).

However, even considering these high salaries foreigners still complain about inflation and low purchasing power when living and spending money within Brazil.

Salary Median

The median monthly wage is 8,220 BRL, which implies that half of the population earns less than 8,220 BRL and the other half earns more than 8,220 BRL.

In Brazil, most employees earn between 1-3 minimum wages which is also 8,220 BRL monthly.

Percentiles

25% of the population earns less than 4,670 BRL, while 75% earn more. In Brazil, the median monthly salary is 4,670 BRL. That means that 25% of the population earns less than 4,670 BRL and 75% earn more than it.

Furthermore, 10% of the Brazilian population earns less than 2,636 BRL and 90% of the Brazilian population earns more than it. Finally, 1% of Brazilians make less than 718 BRL while 9% make more.

In terms of compensation, what is the difference between the average and the median?

The average is computed by adding up all the numbers in a sample and dividing them by how many numbers are in the sample

The median, on the other hand, is what number would be exactly in between the two middle values if you put all the data in order from least to greatest.

For example, let’s say you have six employees of which one is an executive making BRL 10,000 per month and five are laborers making BRL 1,000 per month.

The employees that would be receiving the most money would be the executive because he is at the top of your list and “the numbers in between” (the median) would be BRL 3,500 which would be exactly in the middle of the six employees making BRL 1,000 (one number on one side) and BRL 10,000 (five numbers on the other side).

Comparing Salaries Based on Years of Work Experience in Brazil

What happens to a Brazilian workers’ wage over time?

Research from the Brazilian Research Institute shows that wages in Brazil tend to increase with work experience. The research looks at salaries based on years of work experience and shows how they change over time.

For example, according to the study, a worker with zero to five years of experience earns an average salary of BRL 27,792 per year.

A worker with five to ten years of experience earns an average salary of BRL 31,539 per year. Workers with 10-20 years of experience earn an average salary of BRL 35,108 and workers with 20 or more years of experience earn an annual median salary of 56,530 Brazilian Reais.

While there is a general increase in wages based on work experience, the increase does vary by industry.

The most significant increases in wages are experienced in oil and gas and mining industries where median wages can be as much as 60% higher for workers with over 20 years experience than they are for new employees who have between zero and five years’ experience.

By contrast, construction companies tend to pay less for longer-term employees.

Comparing Salaries Based on Education

Is there a correlation between your education level and your pay?

In Brazil, it is evident there is a strong correlation between education and remuneration. One may be tempted to point out that this relationship could easily be explained by the fact that formal education is required by law; however, there are several reasons why one should not ignore this connection.

For example, the level of schooling completed has a direct influence on professional advancement opportunities.

People with higher levels of education tend to occupy positions of greater responsibility within an organization (whereas those who possess only primary or secondary school diplomas are usually confined to less complex roles).

The salary also increases as the level of schooling rises; therefore, if two people have similar responsibilities but different degrees of education between them, it will always be the case that the employee with more knowledge is better remunerated.

A similar thing can be said about the value and recognition given to formal education (and consequently, the salaries paid). In addition to having greater access to positions of leadership within an organization, those with higher levels of schooling tend to receive more respect from society as a whole.

Are Master’s and MBA degrees worth the time and money?

The Master’s degree in Brazil is an official 2-year post-graduation course (post-graduation is perfect for those who want to work in the academic area).

Compared with the United States, typically has less theoretical content and more practical knowledge. The MBA is also a post-graduate course that lasts about 10 months, which includes disciplines like financial management, commercial law, marketing strategies and others (not all of them).

To get into these courses you must take exams regulated by ANP UNIVERSIDADE (National Agency of Postgraduate Courses) or FADIPA (Federative Agency of Accounting Degree), among others. To attend these universities you must have completed a baccalaureate education course, for example.

All courses are offered in Portuguese (native or second language). The MBA degree is primarily aimed at people who want to work in commercial areas, therefore emphasis on marketing issues and accounting advancements.

The Master’s degree also has a number of specificities, which vary according to each university curriculum. This example represents the general profile of these degrees in Brazil: less theoretical than in other countries and more practical knowledge.

It is important to clarify that a higher qualification does not mean greater marketability when it comes to working placement opportunities.

Even so, if you already have a bachelor’s degree it will be easier for you to get ahead because this post-graduate qualification allows high-level professionals access into the labour market. It is estimated that around 1/3 of the population has a Master’s degree in Brazil.

Gender-Based Salary Comparisons

On average, men in Brazil earn 10% more than women in all industries combined. According to a study by the World Economic Forum (WEF), Brazil’s score for gender equality in terms of salary is 0.683, with 1 marking total inequality and 0 absolute equality.

As there are many social issues affecting this gap in earnings, such as maternity leave and the amount of work performed by each sex, it is clear that men and women in Brazil do not receive equal pay for similar jobs.

The WEF rate for income equality in Brazil puts it at 57th place out of 130 countries analyzed. With the understanding that certain factors affect the wage gap between male and female employees, we can conclude that men and women not only perform different tasks but also complete them at different levels of productivity within their jobs.

However, government initiatives have been put in place to attempt to close this gap, such as the Brazilian National Policy of Women’s Rights and Measures for Gender Equality, which works towards increasing women’s access to higher-paying jobs.

Salary Increase Percentage Brazil

How much is the yearly pay increase in Brazil? In what percentage of the time do workers get raises in their salary?

Every 16 months, Brazilian workers can expect to see an average 9.1% rise in their take-home pay.

Brazil’s year-over-year inflation rate is 5.4%. According to the same report, this leaves workers with a 47% increase in their real wages year over year when adjusted for inflation.

However, every 26 months Brazilian employees are entitled to an annual average 13.5% raise in salary. This means that in the time it takes most Brazilians to get one pay increase, they could have two if they wait for their next scheduled hike in salary instead of spending it right away on necessities like food and bills.

Annual Increase Rate by Industry in in Brazil

Banking – 3%
Information Technology – 9%
Telecommunication – 8%
Media and Entertainment – 1%
Retail – 2%
Construction and Engineering- 3.5%
Pharmaceuticals and Health Care- 5.%
Transportation – 5.9%

Generally speaking, companies in growing sectors give their employees larger and more frequent pay increases.

General trends in economic conditions may have a significant impact on the health of a firm, although exceptions can arise. These numbers are subject to periodic revision.

Average Rate of Median Wages by Level of Experience

For a 40-hour workweek, this results in a monthly wage of 1,840 BRL and 2,827 BRL respectively.

Because more experienced employees are more difficult to find than less experienced ones, the discrepancy in raise rates may be explained in part by employers’ increased efforts to keep them. Full-time Brazilian employees earn about 2,727 BRL on average per month,

The median wage is 14.77 BRL for junior-level employees and 23.10 BRL for more experienced workers with a 40-hour workweek resulting in a monthly income of 1840 BRL and 2827 BRL respectively.

Brazil’s Bonus & Incentive Rates

How much and how often are bonuses given out?

Staff members in Brazil typically receive a bonus each year, and they can also receive an end-of-year incentive. The type of bonus an employee receives is often determined by the length of time he or she has worked for the company.

The most common bonuses are those given out at Christmas and Easter, and employees who have been with their companies longer will usually be eligible for larger amounts. In addition to these traditional bonuses, many workplaces offer other types as well.

For instance, organizations that have been receiving especially positive feedback from clients might bestow one on their staff members as a way to honor them collectively.

Various Bonuses

Bonuses based on individual performance

These are given to employees for extra effort. Bonuses are basically incentives offered by the company to the employees, which will give their best performance.

They act as encouragement if given at the right time and place. These bonuses vary from person to person based on their roles or skills or any other conditions that they might be working under.

Bonuses can be cash salary, shares of profits etc.(Please insert examples) There should be some criteria set up before giving out these bonuses.

For example, some companies decide whether employees can avail this bonus or not at all times like after every 3 months or annually, but organizations like Google offer bonuses according to employee’s performance i.e., whenever someone does his work excellently then he/she gets the chance to avail the bonus.

The amount of bonus can vary based on the performance of an employee or it can be fixed for every person. Bonuses are usually given out after a year but they might also be given immediately as well.

Bonuses based on company performance

These are also referred to as variable pay. They are more common than fixed pay, which does not change based on company performance. Bonuses offer incentives for employees to work hard and perform well because they can earn extra money if the company’s performance is good.

Bonuses are usually one of two types: discretionary or nondiscretionary. A discretionary bonus is given when an employer feels it would be appropriate, regardless of company performance factors such as unit sales or customer satisfaction rate.

Nondiscretionary bonuses have a specific numerical requirement before being handed out and often require a minimum operating profit margin.

Bonuses for Achieving Specific Objectives

Employers often offer bonuses for achieving specific objectives. This is a way in which they motivate their employees to work harder and be more productive. It also reflects the idea of “hard work” being rewarded, which is important from a moral perspective.

For a bonus to be a motivational tool, the goal must have a direct impact on business outcomes. This means that employees who achieve them should perform better than those who do not.

If this is not the case, then it would make sense for employers to make all of their employees’ pay dependent on achieving the objective in order to avoid paying some employees too much and others too little (this would also reduce any risk associated with objectives not being achieved).

Bonuses for the Holidays / Year’s End

Companies offer such bonuses as a way to thank their employees and as an incentive to maintain good morale and productivity throughout the year.

Some companies may even pay out larger bonuses at the end of the holiday season or at the end of each year because they believe this practice will instill a sense of family and reward good work.

People who receive these types of bonuses typically enjoy a higher standard of living than those who do not. Bonuses represent extra income for families and individuals, which helps improve their financial stability by offsetting expenses or making important purchases—such as buying gifts during holidays or birthdays.

Comparison of Bonuses for Different Types of Workers

How can you determine whether or not a job is deserving of a substantial benefits package and a respectable wage?

In Brazil, a professional job is eligible for a substantial benefits package and a respectable wage only if it provides an efficient labor cost to the company.

There are some factors that must be considered when determining this value, such as the type of employment contract, qualification of employees or staff turnover rates.

If an employee works under a permanent labor contract, he/she has more rights than those who work under another kind of contract.

In general, terms, if they perform their duties dutifully and with excellence during all the time they’re contracted by the company, they will continue being employed by it indefinitely –unless there’s disciplinary action involved or some other valid reason for termination.

On top of this security though, workers have access to better social security benefits, sick leave, vacation and overtime pay. In short, they have a better deal from the company.

Comparison of Bonuses based on Seniority

The average bonus for Brazilians in the Workforce is 14.4% of the total annual salary, whereas that of Americans is 17.1%. Bonuses are meant to reward employees for their performance at work by incentivizing them to put more effort into their jobs and creating an atmosphere where they can feel rewarded for their hard work.

Brazilian companies offer bonuses with a lower percentage than most countries because they do not value seniority as much as most nations–in fact, the higher you are on the corporate ladder relative to your peers, the less likely it is that you will receive a bonus.

This contrasts greatly with America, where there tends to be more equality between employees of different levels in terms of receiving bonuses, which also affects how large of a bonus they receive.

One reason for this difference might be the generally lower pay in Brazil than in America, where there is less emphasis on bonuses and more on regular salaries.

Another reason could be that companies in Brazil tend to reward employees who work well with their peers, whereas American companies reward individual performance.

Pay for High-Potential Careers

Architecture

Architect – 10,700 BRL
CAD Drafter – 4,200 BRL

Banking

Bank Branch Manager – 15,000 BRL
Teller – 3,350 BRL

Business Planning

Business Analyst – 10,600 BRL
Business Development Manager – 13,900 BRL
Project Manager – 10,500 BRL

Marketing and Advertising

Account Executive (Agency) – 10,000 BRL
Senior Copywriter – 12,500 BRL
Senior Art Director – 14,500 BRL

Public Relations

Public Relations Manager – 11,100 BRL
Media Planner/Buyer – 9,700 BRL
Multimedia Strategist/Editor – 10,700 BRL
Social Marketing Strategist/Creator – 8,200 BRL
Digital Strategy Strategist/Creator- 9,300 BRL
Sales Support Coordinator – 5,800 BR
Customer Support Representative – 2,600 BR
Business Process Analyst – 8,400 BR
Solutions Architect – 14,000 BRL

Finance and Accounting

Accounts Payable Supervisor – 4,500 BRL
Accounts Receivable Clerk – 3,900 BRL

Healthcare Industry

Medical Advisor (Pharmaceutical Company) – 10,400 BRL
Medical Director (Clinical Trial) – 8,100 BRL

General and Operations Management

Logistics Supervisor – 4,500 BR
Personnel Supervisor – 3,800 BR
Industrial Engineering Manager – 9,200 BR
Industrial Engineer – 8,400 BR
Business Analyst – 10,700 BRL
Technical Consultant – 11,000 BRL

Average Earnings Per Hour in Brazil

Brazil’s average hourly salary is 49 BRL (Brazil’s currency). For every hour of labor, the typical Brazilian earns around 49 BRL. Of that, on average 36 BRL of that goes toward the value-added tax. This brings the average Brazilian’s earnings down to around 13 BRL per hour.

The typical Brazilian worker works for 34 hours per week, which equates to about 1,644 hours annually. If they are earning the aforementioned 13 BRL every hour, this comes out to an average annual salary of about 21,000 BRL (about $7,000 US).

Of course, this number varies depending on profession and location in Brazil. A common laborer may earn 15 BRL per hour while a doctor or lawyer would typically earn over 100 BRL per hour in large cities like São Paulo or Rio de Janeiro.

Salary Comparison Between the Public and Private Sectors in Brazil

On average, public sector workers in Brazil earn 6% more than their private-sector colleagues. This salary difference is even more apparent in the upper echelons of management, where public employees earn an average of 23% more than private-sector managers.

Brazil’s national economy has historically had a large influence on its current state of affairs; Brazil has recently ranked as one of the top 10 economies that are most likely to be affected by the global economic crisis due to ties with China and other emerging markets.

Despite this, there are certain sectors within Brazil that have proved to have significant resistance against this pressure.

The public sector remains relatively unaffected, continuing to offer considerable advantages over their private-sector counterparts when it comes to salaries.

Brazilian citizens enjoy widespread benefits from living in a democratic society – including access to health care, unemployment insurance, and retirement plans.