Brazil is one of the largest countries in South America with a vast market and abundant resources. As globalization increases, more foreign companies are turning their focus to Brazil. However, for employers looking to hire in Brazil, understanding Brazil's compensation system is crucial. This article introduces Brazil's pay cycles and related points of attention to help overseas employers gain a better understanding of compensation practices in Brazil.

1. Pay Cycles in Brazil

Most companies in Brazil adopt a monthly pay system. This means employees receive a fixed salary at the end of each month, usually on the last working day or first working day of the month. Some companies also use semi-monthly pay where staff are paid twice a month.

Notably, in Brazil there are 13 months of salary per year. By law, employees must receive an additional month's salary equivalent to half their normal monthly pay, usually paid in December and called the"13th salary."

2. Points of Attention

1) Unions: Unions are very important for both employees and employers in Brazil. Employers must respect labor laws and maintain communication with local unions.

2) Taxes: Employers pay various taxes supporting social programs including social security, medical, unemployment insurance based on employee wages.

3) Public holidays: These national holidays mandate paid leave and employers must pay twice normal wages.

4) Overtime pay: Employees normally work 44 hours weekly. Overtime is paid at 50-100% of normal hourly wages.  

5) Pensions: Employees have retirement benefit rights. Employers must contribute to pension funds as regulated.

In conclusion, understanding Brazil's compensation system and laws aids in managing employees legally and prevents disputes. This overview aims to benefit overseas employers hiring staff in Brazil.