Minimum wage in Brazil 2026: BRL 1,621 a month

How the salário mínimo is set

The President fixes the rate by decree late each year under Lei 14.663/2023, the minimum wage valorization policy, and Lei 15.077/2024. It applies to all employees nationwide. States may set higher regional floors (piso regional) by state law; those were not checked for this page, so confirm the state rate if you hire in a state that has one.

The 2026 rate rose from BRL 1,518.00 in 2025 (Decree 12.342 of December 30, 2024), an increase of 6.79% by our arithmetic. The 2027 decree had not been issued as of October 18, 2026; it usually arrives in late December.

Other minimum wage rates in Brazil

Brazil minimum wage history

The hourly rate and the shorter work week

The decree's BRL 7.37 an hour is the monthly rate divided by 220, the hours divisor for Brazil's 44-hour week. That divisor is about to change. Constitutional Amendment 141 of October 16, 2026 rewrites the hours rule in the Constitution: the maximum week drops to 42 hours two months after publication (around December 16, 2026) and to 40 hours one year after that, with no cut in pay. The same amendment gives two paid weekly rest days, also from two months after publication.

The monthly minimum stays at BRL 1,621.00. What we have not confirmed is how the hourly minimum will be restated on fewer hours. For employers the direction is clear: the same monthly pay for fewer hours raises the cost of each hour worked, and overtime starts sooner.

What a year at the minimum wage pays

Two payments are mandatory on top of 12 monthly salaries. The 13th salary (gratificação natalina) is 1/12 of December pay for each month worked, a full extra month for a full year. Paid vacation carries at least one-third more than normal pay.

• 12 x BRL 1,621.00 = BRL 19,452.00
• 13th salary: BRL 1,621.00
• Vacation one-third: 1,621 / 3 = BRL 540.33
• Year total: BRL 21,613.33 (about $4,252)

Employer charges on a minimum-wage employee

A regular-regime commerce or services company pays INSS of 20%, accident insurance (RAT) of 2% at a neutral FAP, third-party contributions of 5.8% and FGTS of 8%: 35.8% in all, on base pay, the 13th salary and the vacation third. None of these has a ceiling. Charging INSS on the vacation third follows our research model; we have not confirmed that treatment from an official source.

• 35.8% x 21,613.33 = BRL 7,737.57
• Cost of the employee for the year: 21,613.33 + 7,737.57 = BRL 29,350.91 (about $5,775)
• That is 50.89% more than the 12-month base of BRL 19,452

Depending on the company's risk class and FAP, the on-cost runs from 49.22% to 55.33%. Simples Nacional companies (outside Annex IV) pay employer INSS inside their single tax and skip third-party contributions, but FGTS still applies. Dismissal without cause adds a fine of 40% of all FGTS deposits made during the job. Remote's country explorer shows 0% employer cost for Brazil; our employer cost index shows why that is wrong.

Paying a Brazilian employee compliantly from abroad

An employer of record registers the employee, runs payroll reporting and deposits FGTS monthly. Published EOR list prices run from $99 (Native Teams, whose help center says EUR 99) to $699 (Oyster) per employee per month (checked October 16 and 18, 2026), and Deel lists $599. At the minimum wage, about $319 a month, Deel's $599 fee is larger than the salary itself and even the $99 floor is about a third of it, so an EOR only makes sense for roles paid well above the floor.

The Brazil EOR guide has an all-in monthly example at a market salary. Compare providers in our EOR rankings and EOR fees compared, and see average pay in Brazil for what workers typically earn. Nearby: the Argentina minimum wage.