Brazil's New Working-Time Framework: Reduced Hours, Two Weekly Rest Days, and a New Exemption for Certain Employees

Brazil's newly enacted Constitutional Amendment No. 141 significantly changes the country's working-time rules. The amendment gradually reduces the maximum workweek from 44 to 40 hours, introduces a second paid weekly rest day, and creates a new exemption from working-time and timekeeping requirements for certain employees with a university degree who meet a compensation threshold.

What Is Changing?

The amendment introduces four major changes:

• The maximum workweek will be reduced from 44 hours to 40 hours.
• Employees will be entitled to two paid weekly rest days, one of which should preferably be Sunday.
• Salaries cannot be reduced to offset the shorter workweek or additional rest day.
• Certain degree-holding employees earning above a specified compensation threshold may be exempt from working-time and timekeeping rules.

Key Dates

The changes will be implemented in stages:

• October 16, 2026: Most provisions became effective, including the new Article 8 exemption discussed below.
• December 16, 2026: The maximum workweek is reduced from 44 to 42 hours, and the entitlement to two paid weekly rest days becomes effective.
• December 16, 2027: The maximum workweek is further reduced from 42 to 40 hours.

Article 8 Creates a New Working-Time Exemption

One of the most noteworthy aspects of the amendment is Article 8, which establishes a new category of employees who are exempt from working-time limits and timekeeping requirements.

To qualify, an employee must:

• Hold a university degree; and
• Earn a monthly salary that is at least 2.5 times the maximum RGPS¹ social security benefit.

Based on the current RGPS cap, the threshold is approximately BRL 21,188.88 per month (USD 4,210). The threshold is expected to increase in January 2027 when the annual RGPS adjustment takes effect.

This exemption differs from the existing Article 62 exemptions under the Labor Code. It is not tied to managerial status, external work, or the inability to track working hours. Instead, eligibility is based primarily on education and compensation.

Employees who qualify are generally not subject to statutory working-time limits or overtime rules. However, they remain entitled to the constitutional paid weekly rest days and double pay if they work during those days.

The exemption may also be overridden if:

• The employer voluntarily applies timekeeping rules; or
• A collective bargaining agreement requires working-time control.

The Hidden Cost of the Second Weekly Rest Day

Many employers are focused on the reduction in weekly hours, but the second paid rest day may have an equally significant payroll impact.

First, if Saturday becomes the employee's second weekly rest day, work performed on that day may need to be compensated as work on a paid rest day. As a result, hours that were previously paid as overtime at 150% of the regular hourly rate would become payable at 200% if no substitute rest day is granted during the same week.

Second, the change may increase the cost of variable compensation.

Under Brazilian law, commissions, production incentives, overtime premiums, and other variable earnings are reflected in the calculation of the paid weekly rest. With two paid rest days instead of one, employers may see a substantial increase in the weekly-rest component associated with variable compensation.

For example, an employee earning BRL 6,000 in monthly commissions and working 22 days in a month with eight paid rest days would generate approximately BRL 2,181.82 in paid-weekly-rest pay. Under a system with only four paid rest days, that amount would be approximately BRL 1,090.91.

The increase may also have a cascading effect on vacation pay, the 13th salary, FGTS² contributions, severance calculations, and other labor costs.

What Can Employers in Brazil Do Now

Before the December 2026 implementation date, employers should consider:

• Reviewing work schedules and identifying how the second paid rest day will be structured.
• Evaluating the operational impact of moving from a 44-hour to a 42-hour and eventually a 40-hour workweek.
• Reviewing collective bargaining agreements for provisions that may conflict with the amendment.
• Identifying employees who may qualify for the new Article 8 exemption.
• Assessing the effect of the new rules on overtime exposure, Saturday work, and variable compensation costs.
• Updating policies, employment agreements, payroll systems, and timekeeping practices.

Looking Ahead

Constitutional Amendment No. 141 will require employers to rethink scheduling, staffing, and compensation practices. While much of the initial attention has focused on the reduction of the workweek, the introduction of a second paid weekly rest day and the new Article 8 exemption may ultimately have the most significant operational and financial consequences for many employers.