Average salary in Brazil

Brazil is one of the largest and fastest growing economies in the world. Despite this, the level of income and quality of life differ significantly among different segments of the population. The average salary in Brazil is about 650 $ after taxes.

Economic situation and incomes of the population today

The Brazilian economy is extremely unstable: periods of strong growth are quickly followed by regression and decline. This is due to its closed nature, high levels of corruption and crime, underdeveloped infrastructure, high tax payments, geographic heterogeneity, etc. After a prolonged decline (2014–2016), 2019 saw a slight increase in GDP - 1%.

Reference! The phenomenon of a relatively high cost of living in a country with relatively low incomes has been called the “Brazilian price”.

In terms of income, Brazil is inferior not only to most Western European countries, but also to many of its neighbors in Latin America (Argentina, Chile). Moreover, almost 70% of income is concentrated in the hands of the richest 20% of the population, and the share of the poorest 1/5 of the population does not exceed 5%.

Salary per month by occupation in 2021

The national currency of Brazil is the real. Its course is free, i.e. varies depending on the macroeconomic situation in the country. Currently 1 real is equal to US $ 3.7.

The average salary of representatives of various professions directly depends on qualifications: highly qualified specialists with higher education earn significantly more than ordinary workers.

Minimum

The current minimum wage rate in Brazil in 2021 is R $ 969 (about $ 262). The state guarantees that the employee will receive this money on condition of full 8-hour employment 5 days a week. Compared to 2018, the minimum wage increased by 8$.

Average

Average wages in Brazil are subject to significant fluctuations, depending on various factors:

• place of residence;
• qualifications and work experience;
• age and gender;
• demand for the specialty;
• race, etc.

Women earn on 10-20% there are fewer men in similar positions, and the earnings of public sector workers are significantly higher than the earnings of most of the population. Black Brazilians earn less than half that of fair-skinned Brazilians.

Average salary in Brazil (excluding tax and social benefits) is 700-1200 $... This corresponds to the net salary in 650 $ (the amount that the employee receives in his hands).

Average starting

When applying for a new job, an employee has the right to count on a starting salary 10-25% lowerthan a similar specialist with experience.

A feature of the Brazilian labor market is a high interest in qualified personnel. This means that it is quite difficult for a Russian or a Ukrainian working profession to find a job with a salary that corresponds to the average earnings in the country. As a rule, it does not exceed 400-550 $... Highly qualified foreign specialists start salary from 1000 $.

Basic knowledge of the state Portuguese language, even for an ordinary worker, is almost mandatory.

Maximum

The maximum salary in Brazil may exceed 4000-5000 $ monthly. Incomes of this level are most often typical for work in the civil service, which can only be claimed by indigenous people.

Among the most demanded publicly available specialties, the maximum salary for medical workers (surgeons, anesthesiologists, gynecologists), representatives of the IT and banking industry, real estate and finance.

Labor remuneration by city and region

The incomes of residents of different regions may differ by more than 2 times. The wealthiest are residents of the Federal District, Goias and Roraima. Their salaries are about $ 1000 (after taxes). The lowest level of earnings among Brazilians from Rio Grande do Norte: does not even reach 400 $... In general, residents of large cities with developed industry, infrastructure and large international companies (Rio de Janeiro, Sao Paulo, Brasilia) earn more workers from the regions.

The table shows the average salary by state.

Payroll taxes

Much of Brazil's economy is based on tax payments; they add up to up to 40% from the total GDP of the country. A tax resident is an employee who has a permanent / temporary visa with an employment contract or stays in the country for more than 183 days a year.

Reference! Taxes in Brazil are levied at several levels: federal, municipal, local.

Residents are required to pay taxes on income received in Brazil and abroad (with the exception of countries participating in the double taxation agreement). Non-residents' income is subject to a rate of 25%, and taxes are paid only on income received in the country.

Income tax

Brazil has a taxation system, according to which taxes increase with the growth of the income received. The income tax rate fluctuates between 7,5%-27,5%.

The following income tax values ​​are indicative and depend on the current exchange rate of the real.

For legal entities, the standard income tax is 15%.

Social contributions and other taxes. Tax deductible expenses

The Brazilian tax system implies a large number of social benefits, which often overlap:

• COFINS: social security;
• PIS / PASEP: social inclusion and provision of federal employees;
• social insurance, etc.

The tax burden on social benefits is borne by both the employee and the employer. The employee pays monthly from 7.65% to 11% your gross earnings.

Certain expenses incurred by a resident are tax deductible and not taxable:

• education costs;
• payment of alimony;
• maintenance of the dependent;
• contributions to pension programs, etc.

The ratio of salary and living expenses

Daily expenses depend on the place of residence: in large cities they are higher. The rent for a 1-bedroom low-level apartment in a residential area of ​​Rio de Janeiro starts from 400 $, and utility bills are about $ 80 per month... A ticket for 1 ride on public transport costs about $ 1. Food costs for a family of three are 250-400 $, and 1 liter of gasoline costs 1,3 $.

Unemployment Rate and Prospects for Migrants

Brazil's unemployment rate has been on a steady upward trend in recent years. In 2017, it reached 12%, and in 2018 - 13%... A significant number of local residents work without formal employment.

A significant level of emigration provides a positive migration balance. Despite the economic difficulties, Brazil needs a skilled labor force: first of all, migrants with higher education, capable of performing narrow-profile jobs.

Low-skilled professionals may have difficulty finding work.

A large labor market, a decent level of wages for highly qualified specialists, an abundance of large international companies make Brazil promising for migration among a wide range of applicants for various vacancies.