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Brazil—Mind the Gap—Employer Perspectives

by Danielle Carusi Machado & Cecilia Moreira Borges

December 2010—Growing minimum wage, unemployment insurance, and supplements from employers provide security for Brazilian workers, according to a new study by the Sloan Center on Aging & Work.

From 2001 to 2010 the Brazilian minimum wage has gradually increased, by nearly 70%., from R$ 284 ($165 US) in 2001 to its highest value in March 2010—approximately R$ 510 ($285.57 US).

Additionally, from 2008 to 2009 alone, the number of Brazilian workers insured by unemployment insurance increased about 10% (6.8 million to 7.4 million). Most insured workers in Brazil receive 30-day unemployment insurance.

Interestingly, many Brazilian employers across industry sectors offer supplements to employee salary. For example, in Brazil:

  • Employers in Domestic Services and Public Services offer the most housing supplements—about 8.4% and 4.9% respectively;
  • Only 1% of employers in Education, Health, and Social Services sectors offer housing supplements to their employees;
  • Employers in Transport, Storage, and Communications offer the most feeding supplements—57%—followed by Accommodations and Foodservices—54.6%. These two sectors also more frequently offer transportation supplements—52.1% and 50%, respectively;
  • Health and Social Services organizations more frequently offer education supplements—4.6%; and
  • Health and rehabilitation supplements are more frequently offered by Manufacturing enterprises (28.1%) and Transport, Storage, and Communications (24.9%).

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