Brazil: Update of the Monthly Salary applicable to Hipersuficiente Employees
Law 13,467/17 (known as the “Brazilian Labor Reform”) introduced the concept of hipersuficiente employee, which means the employee who is considered capable of negotiating some conditions of his/her employment agreement directly with the employer without the need of the participation of the employees’ union.
To be considered a hipersuficiente employee, the individual must hold a university degree and receive a monthly salary equal or higher than two times the maximum amount applicable to social security benefits.
Ordinance No. 12 of the Ministry of Labor and Social Security and the Ministry of Economy readjusted the maximum amount applicable to social security benefits to BRL 7,087.22. As a consequence, the monthly salary that an employee must receive in order to be classified as a hipersuficiente employee was updated to BRL 14,174.44 (which corresponds to approximately USD 2,620).
Key Action Points for Human Resources and In-house Counsel
- Attention to the currently monthly salary that employees should receive in order to be considered as hipersuficienteFrom now on, companies may negotiate employment conditions with more freedom only with employees who receive BRL 14,174.44 or a higher salary.
- Besides checking if the employee receives a monthly salary of at least BRL 14,174.44, it is important to check if the employee holds a university degree.