How much do benefits cost a company
Anyone will tell you that employee costs are extremely expensive in Brazil and they are easy to underestimate. Despite the fact everyone knows this, the actual taxes and benefits are usually left for the accountant to deal with. This is no good for an entrepreneur that needs to write a business plan.
So, to make it easy for you to plan your costs, here is a simulation the costs of hiring someone CLT at a salary of R$7000 per month http://www.calculador.com .br/cal.
As you can see there are many taxes and benefits that are mandatory by law. This is why getting a good accountant is essential. Not all the benefits are payable each month but its better to plan this monthly since all costs must be paid eventually.
Here is another table that shows total employee costs for different salaries. I have used pretty frugal assumptions around benefits;
R$5.60 transport per day + R$10 lunch tokens + R$150 health plan. These assumptions change depending on the union requirement and the company, as does the exact amount of tax payable. As you will see, the proportion of benefits and taxes is higher for lower salaries. While the rule of thumb is 70%-80% of salary, it is well over double the cost for the lowest salaries.
The minimal wage in Brazil is R$622 per month. However, this can be misleading to a foreigner with a concept of what minimum wage can buy you in Europe. In the UK, even top university students regularly work for minimum wage. In Brazil, minimum wage will not get you anyone remotely well-educated.
If someone told you labour was cheap in Brazil, they aren’t talking about labour in big cities that will work for a startup.
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