The Average Salary in Brazil (2021)

Average Salary in Brazil

Suppose you want to outsource your business operations to the largest Latin American country. In that case, you need to know the average salary in Brazil.

Short answer? 

It’s 8560 BRL (Brazilian Real, which is about 1,635 US dollars, according to the exchange rate in August 2021.

The average salary in Brazil is lower than the average salaries in the US or UK, so several businesses outsource to Brazil. 

In this article, we’ll look into the average salary in Brazil. We’ll also explore the cost of living in Brazil and the top three benefits of outsourcing to Brazil.

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Let’s get started.

What is the Average Salary in Brazil?

The average monthly wage in Brazil is 8,560 BRL (Brazilian Real) per month and 1,02,720 BRL per year. According to the exchange rate in August 2021, it’s equal to around USD 1,651 (1 BRL = 0.19 US dollars).

The average monthly income includes transportation costs, housing costs, and other employee benefits as well. 

Brazil has a higher average salary than other Latin American countries like Colombia (1200 USD). However, it’s still comparatively lower than developed countries like the USA and other European countries.

The salary varies drastically across different sectors, industries, and job titles. The most paid careers are Health Care & Medical (631,656 BRL), just above Management & Business (438,909 BRL).

Brazilian employees earn an average income of 16 BRL per hour (USD 3.09).

Note: The figures provided here are averages of numbers and should only be taken as general guidelines. Salaries and increments will vary from person to person and depend on the factors mentioned above. 

Now, let’s explore the various aspects regarding the average salary in Brazil.

1. Median Salary

The median salary of an employee in Brazil is 8,220 BRL per month. After arranging wages in ascending order, the point at the middle will represent the median salary.

It means that half of the workers earn above this level, and the other half earn less.

2. Maximum and Minimum Salary Range

In Brazil, the average salary ranges from 2,170 BRL (USD 417) to 38,200 BRL (USD 7349). The minimum is 2,170 BRL, and the maximum being 38,200 BRL.

3. Average Annual Salary Increment Percentage

Employees in Brazil are most likely to get a salary increment of approximately 9% every 16 months. The average salary increment in one year is 7%.

Although an annual salary increment usually means getting a pay raise after every 12 months, that isn’t always the case.

The increment rate varies a lot across different industries and domains. For example, people with a job in the construction industry get the highest pay increase of 9%.

Here’s an annual increment data based on industry types in Brazil.

IndustryAnnual Increment (in percentage)
Banking3%
Energy6%
Information Technology 9%
Healthcare3%
Travel6%
Construction9%
Education3%

Source: salaryexplorer.com

Note: The average wage increment rate is 3% every year across the world

4. Minimum Wage in Brazil

By definition, the national minimum wage is the minimum amount of payment that an employer must pay.

Brazil’s minimum wage as per the government norms was 1039 BRL (USD 196) per month in 2020.

Source: www.statista.com

Salary Comparison by Education, Experience, and City

1. Education

  • Employees with a Bachelor’s degree earn 24% income more than diploma degree holders.
  • On the other hand, employees with a Master’s degree earn 29% more income than those with a Bachelor’s degree.
  • Finally, Ph.D. holders earn 23% more income than an employee with a Master’s degree, doing the same work. In general, Ph.D. holders draw the highest salaries.

2. Experience

As with most other countries, Brazilian employees with more experience usually get a high salary package.

Here’s a comparison table to show how a person’s wage increases with experience.

Experience Level (in years)Salary Increase (in percentage)
Less than 2 Starting wage
2 to 5 32%
5 to 10 36%
10 to 1521%
15 to 2014%
More than 209%

Source: salaryexplorer.com

3. City

The Brazilian city of Salvador pays the highest average salary of around 684,164 Brazilian Real.

Here’s the wage comparison table by profession.

CityAverage Salary (per year)
Salvador684,164 BRL
Maceió535,669 BRL
Campo Grande499,386 BRL
Guarulhos493,667 BRL
Ribeirão Preto467,518 BRL
Jaboatão dos Guararapes455,536 BRL
São Paulo343,459 BRL
Uberlândia326,870 BRL
Rio de Janeiro299,861 BRL
São José dos Campos289,351 BRL

Source: www.averagesalarysurvey.com

The Brazilian Labour Code safeguards the interests of its workforce. 

Here’s a list of some of them:

  • The government of Brazil has made it mandatory for employers to pay their employees in the official Brazilian currency (Brazilian Real or BRL). 
  • Compensation consists of the base salary, bonuses, commissions, and other employee benefits. Employees must be paid monthly, barring some exceptions.
  • Additionally, every employer should pay a Christmas bonus equivalent to one month of wages.
  • The regular working hours in Brazil are eight hours per day, and weekly work hours should not exceed 44 hours.

Cost of Living in Brazil

Although the cost of living in Brazil is relatively low when compared to a developed country like the US or Japan, it’s still expensive in many regards.

Let’s take a detailed look at the cost of living in Brazil.

1. Cost of Accommodation

Accommodation puts the biggest dent in the total income of a Brazilian worker.

Rio de Janeiro is one of the wealthiest cities in Latin America and Brazil’s most expensive city.

According to a survey conducted by Numbeo in August 2021, renting an apartment in an expensive city like Rio de Janeiro will cost you about 1,790 BRL (1-bed apartment).

2. Cost of Food and Eating Out

Food costs in Brazil vary from place to place. While restaurants in bigger cities are high-priced, groceries and household items are moderately priced.

Things like grains, bread, and easily available in the local markets. 

Brazilian people are also fond of beer and cachaca (a type of liquor made from sugarcane). Prices for local wines and liquors are inexpensive, while imported liquors are expensive due to the high customs duty.

3. Cost of Transportation

Transportation costs in Brazil are higher than in other Latin American countries. Cars are bound to be more expensive due to parking and insurance charges.

However, Brazil has an extensive network of public transport like buses and trains. Most big cities have metro and bus systems that cover the whole country.

Some Brazilian companies also provide transport remuneration on top of the monthly salary package.

Top 3 Benefits of Outsourcing to Brazil

Brazil has one of the largest communities of IT employees and houses some of the best universities in the world.

As of August 2021, Brazil’s economy has bounced back to the pre-pandemic level. And with government-backed infrastructure support, outsourcing to Brazil can be very lucrative for your business.

Let’s check out some of the advantages of outsourcing to Brazil:

1. Availability of Skilled Talent

Getting into a Brazilian institute can be tough due to its highly competitive nature. Brazilian universities consistently make it to the top institutes. 

According to the QS World University Rankings, 2021, the University of Sao Paulo ranked 121st globally.

The QS World Rankings also ranked UFRJ (Universidade Federal do Rio de Janeiro), known for advanced engineering courses, as the 7th best university in Latin America in 2018.

Talking about sheer numbers in terms of talent, Brazil is naturally behind traditional outsourcing giants like India and China. Yet, you can easily find skilled talent among the highly educated professional workforce.

2. Economic Stability

Despite the pandemic, Brazil has fared reasonably well in terms of economic stability in 2021. Its IT sector is a $47 billion market, growing 9.8% in 2018 alone.

The Brazilian economy derives its strength from automotive and aviation manufacturing, renewable energy production, industrial machinery, and a well-developed financial sector.

Moreover, intelligent economic policies have contributed over time to a business-minded environment.

3. Government Support 

The Brazilian government hopes to emulate outsourcing giants like China and India by turning Brazil into a top outsourcing center.

In 2017, the government sanctioned a new outsourcing law (or Law Nº 13, 429/2017) that allows companies to hire outsourced employees to work on primary activities such as software development or sales manager. Previously, outsourced employees could only work on secondary activities like maintenance or cleaning. 

The new outsourcing law moves away from the earlier protectionist labor regime. That will help to reduce the unemployment rates and the high costs imposed on employers.

Wrap Up

The higher average salary of a typical Brazilian worker is good news if you are an expat seeking employment in Brazil.

Also, if you want to outsource your business operations to Brazil, your business operations can continue to function effectively.

The massive talent pool, government support for outsourcing companies, and the lower average salary (compared to developed countries) make Brazil a suitable outsourcing destination for most businesses.  

Use this average salary guide to decide the right move for your business.

 
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