Countries › Brazil › Guide › 7. Labor and employment › Minimum wage and pay rules in Brazil: national and state floors, payday, 13th salary, equal pay and payroll withholding

Minimum wage and pay rules in Brazil: national and state floors, payday, 13th salary, equal pay and payroll withholding

Last verified: 2026-10-27 · Status: Stable

The national minimum wage is R$1,621.00 a month from 1 January 2026, but states may set higher floors for workers without a collective or federal floor; São Paulo's is R$1,874.36. Salaries are paid monthly by the 5th business day of the following month, plus a 13th salary each year, and equal work in the same establishment must earn equal pay, with fines of 10 times the salary for discrimination. From January 2026 monthly income tax withholding is reduced to zero on taxable pay up to R$5,000, phasing out at R$7,350.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.5007 per US dollar for 26 October 2026, the last business day before verification. The real moved sharply that day (R$5.0377 on 23 October), so conversions are for orientation only.

Key facts

National minimum wage, monthly (2026)	1621.0 BRLDecreto nº 12.797/2025, as of 2026-01-01 · in force
National minimum wage, monthly (2026), in USD	294.69 USDDecreto nº 12.797/2025, as of 2026-10-27 · in force
National minimum wage, daily (2026)	54.04 BRLDecreto nº 12.797/2025, as of 2026-01-01 · in force
National minimum wage, hourly (2026)	7.37 BRLDecreto nº 12.797/2025, as of 2026-01-01 · in force
São Paulo state wage floor (2026)	1874.36 BRLSP Lei nº 18.471/2026, as of 2026-10-27 · in force
Deadline to pay monthly salary	5th business day of the following month CLT art. 459 § 1, as of 2026-10-27 · in force
13th salary	1 monthly salary per year Lei nº 4.090/1962, as of 2026-10-27 · in force
Fine for pay discrimination	10 times the corrected salary (doubled on repetition) CLT art. 461 § 7, as of 2026-10-27 · in force
Top employee social security rate (2026)	14 %Portaria Interministerial MPS/MF nº 13/2026, as of 2026-10-27 · in force
Monthly social security contribution ceiling (2026)	8475.55 BRLPortaria Interministerial MPS/MF nº 13/2026, as of 2026-10-27 · in force
Taxable monthly pay with zero income tax withholding (2026)	5000.0 BRLLei nº 15.270/2025, as of 2026-10-27 · in force
Top income tax rate on wages	27.5 %Lei nº 15.191/2025, as of 2026-10-27 · in force

The rule

1. From 1 January 2026 the national minimum wage is R$1,621.00 a month, R$54.04 a day and R$7.37 an hour.
Cost to do it: Floor cost of a full time hire before charges: R$1,621.00 a month.
Example: R$1,621.00 x 13 (12 salaries plus the 13th) = R$21,073.00 a year before vacation bonus and charges. / About US$294.69 a month, US$3,830.97 a year.Decreto nº 12.797 of 23 December 2025 (DOU of 24 December 2025), Art. 1 and sole paragraph; art. 2, 2025-12-23 official text · verified 2026-10-27

2. States and the Federal District may set a state wage floor, by a bill from the state executive, for workers who have no floor fixed by federal law or by a collective convention or agreement. They may not do so in the second half of a year with state elections, nor for municipal servants, and the floor may extend to domestic workers.
Cost to do it: No fee; check the state floor and the collective agreement for each establishment before setting salaries.Lei Complementar nº 103 of 14 July 2000, Art. 1 caput and §§ 1 and 2, 2000-07-14 official text · verified 2026-10-27

3. In the state of São Paulo the monthly wage floor is R$1,874.36 for the occupations listed in the law (including domestic workers, cleaning, retail, industrial and administrative staff without specialization, drivers of motorcycles, sales, construction trades and many others), effective from the first day of the month after publication.
Cost to do it: R$1,874.36 a month minimum for covered workers in São Paulo without a collective floor.
Example: A São Paulo receptionist with no collective floor must earn at least R$1,874.36, that is R$253.36 more than the national minimum. / About US$340.75 a month.São Paulo state Lei nº 18.471 of 27 May 2026, amending art. 1 of state Lei nº 12.640 of 11 July 2007, Art. 1 (new art. 1, I and II of Lei nº 12.640) and art. 2, 2026-05-27 official text · verified 2026-10-27 · changed: Lei nº 18.471 of 27 May 2026 raised the São Paulo state floor to R$1,874.36, in force from the first day of the month after publication.

4. Pay may not be set for periods longer than one month, except commissions, percentages and bonuses. Monthly pay must be paid by the 5th business day of the following month.
Cost to do it: No fee; late salary payment exposes the employer to labor inspection and to indirect termination claims under CLT art. 483(d).CLT art. 459 and § 1 as worded by Lei nº 7.855 of 24 October 1989, CLT art. 459 caput and § 1, 1989-10-24 official text · verified 2026-10-27

5. Every employee earns a 13th salary equal to 1/12 of December pay for each month worked in the year, with fractions of 15 days or more counting as a full month. It is paid proportionally when a fixed term contract ends or the worker retires before December, and on dismissal without just cause it is calculated on the pay of the termination month.
Cost to do it: One extra monthly salary a year, plus FGTS and social security on it.
Example: Employee on R$9,000.00 dismissed without cause on 20 August after working the whole year: 8/12 of R$9,000.00 = R$6,000.00 (August counts because 20 days exceed 14). / About US$1,090.77.Lei nº 4.090 of 13 July 1962; art. 1 § 3 inserted by Lei nº 9.011 of 1995, Arts. 1 §§ 1 to 3 and 3, 1962-07-13 official text · verified 2026-10-27

6. Remuneration includes salary and tips; fixed salary, legal bonuses and commissions are part of salary. Allowances, travel per diems, prizes and bonuses (abonos) are not salary even if habitual. Prizes are rewards for performance above the ordinary standard. Food, housing and other in kind benefits given habitually count as salary, capped at 25 percent (housing) and 20 percent (food) of contract pay, while work clothing, education, transport, health and life insurance, private pension and medical reimbursements are not salary.
Cost to do it: Items outside salary avoid reflections on vacation, 13th salary and FGTS; misclassifying salary as a prize triggers back charges.CLT arts. 457 and 458 as worded by Lei nº 13.467 of 13 July 2017, Lei nº 8.860 of 24 March 1994 and Lei nº 12.761 of 2012, CLT art. 457 §§ 1, 2 and 4; art. 458 §§ 2, 3 and 5, 2017-07-13 official text · verified 2026-10-27

7. Identical work of equal value for the same employer in the same establishment must receive equal pay regardless of sex, ethnicity, nationality or age. Equal value means equal productivity and technical quality between people whose service time for the employer differs by no more than 4 years and time in the role by no more than 2 years; a formal career or pay plan is an exception. Where pay discrimination on these grounds is found, the employer owes the pay differences plus a fine of 10 times the employee's corrected salary, doubled for repeat violations, without prejudice to moral damages.
Cost to do it: Fine of 10 times the corrected salary of the employee discriminated against, doubled on repetition.
Example: Woman paid R$7,000 for the same role in which a man earns R$8,500: back differences of R$1,500 a month plus a fine of 10 x R$7,000 = R$70,000.00. / Fine about US$12,725.65.CLT art. 461 as worded by Lei nº 13.467 of 13 July 2017; §§ 6 and 7 as worded by Lei nº 14.611 of 2023, CLT art. 461 caput and §§ 1 to 7, 2017-07-13 official text · verified 2026-10-27

8. Employees contribute to social security at progressive rates on salary up to the 2026 ceiling of R$8,475.55: 7.5 percent up to R$1,621.00; 9 percent from R$1,621.01 to R$2,902.84; 12 percent from R$2,902.85 to R$4,354.27; 14 percent from R$4,354.28 to R$8,475.55. The employer withholds it from pay.
Cost to do it: Maximum employee contribution on pay at or above the ceiling: R$988.09 a month.
Example: On R$5,000.00: R$501.51. On R$10,000.00: R$988.09 (capped at the ceiling). / US$91.17 and US$179.63.Portaria Interministerial MPS/MF nº 13 of 9 January 2026, as published by the Instituto Nacional do Seguro Social, Contribution table for employees, domestic and casual workers, 2026-01-09 official text · verified 2026-10-27

9. Monthly income tax is withheld from pay using the 2026 table (exempt up to R$2,428.80; 7.5, 15, 22.5 and 27.5 percent brackets, the top rate above R$4,664.68 with a deduction of R$908.73). From January 2026 a reduction applies on top: on taxable monthly income up to R$5,000.00 the reduction (up to R$312.89) brings the tax to zero; from R$5,000.01 to R$7,350.00 the reduction is R$978.62 minus 0.133145 times the taxable income; from R$7,350.00 it is zero.
Cost to do it: Employer is the withholding agent; errors make it liable for the tax not withheld.
Example: Salary R$5,000.00: social security R$501.51, income tax zero after the reduction, net R$4,498.49. Salary R$10,000.00: social security R$988.09, tax base R$9,011.91, tax R$1,569.55, net R$7,442.36 (no dependants, legal deductions used). / Net US$817.80 and US$1,352.98.Lei nº 15.191 of 11 August 2025 (table) and Lei nº 15.270 of 26 November 2025 (reduction), as published by the Receita Federal, Receita Federal 2026 monthly table and reduction table, 2025-11-26 official text · verified 2026-10-27 · changed: From January 2026 Lei nº 15.270 of 26 November 2025 eliminated withholding on taxable monthly income up to R$5,000 and reduced it up to R$7,350.

Gross salary (R$)	Employee INSS (R$)	Income tax (R$)	Net (R$)	Net (US$)
5,000.00	501.51	0.00	4,498.49	817.80
10,000.00	988.09	1,569.55	7,442.36	1,352.98

Net monthly pay for a single employee with no dependants, 2026 (INSS table under Portaria Interministerial MPS/MF nº 13/2026; IRRF under Leis nº 15.191 and 15.270/2025). USD at R$5.5007.

Worked example

An employer in São Paulo hires a sales assistant without a collective floor at the state floor of R$1,874.36 (US$340.75). Employee social security is R$144.38, income tax is zero, and the salary must be paid by the 5th business day of the next month.

Step by step

Find the applicable collective agreement or convention for each establishment and job; its floor usually prevails.
Check the state floor where the employee works (for example São Paulo Lei nº 18.471/2026) and the national minimum.
Set a payroll calendar that pays by the 5th business day and the 13th salary by its legal dates.
Document job levels in a career and pay plan to support pay differences under CLT art. 461 § 2.
Configure withholding with the 2026 INSS table and the income tax table plus the Lei nº 15.270 reduction.

Common traps

Using the national minimum wage in a state with a higher floor (São Paulo, among others) underpays covered workers.
Calling recurring fixed payments 'prizes' does not make them non salary; prizes must reward performance above the ordinary standard (CLT art. 457 § 4).
Housing given as salary in kind may not exceed 25 percent of contract pay, food 20 percent (CLT art. 458 § 3).
Pay gaps between people in the same role without a documented career plan invite equal pay claims and the 10 times salary fine.
The Lei nº 15.270 reduction cuts withholding on pay up to R$7,350 but does not change social security.

Sources

← Employment contracts in Brazil: indefinite, fixed term, trial, intermittent, part time and apprenticeWorking hours, overtime, breaks and night work in Brazil, including the move to a 40 hour week →