Doing Business in Brazil Tip: Monthly Salaries

Unlike in the United States, where employees may receive their salary on a bi-monthly or weekly basis, all workers in Brazil receive a monthly salary. This difference may seem like nothing more than a difference in preference, but it actually is an important fact to take notice of for businesses.

More specifically, government workers typically receive their payments by the first of the month, while all others receive payments normally by the fifth of the month.

What does this mean?

1: Companies should look to sell products and services at their highest prices at the beginning of the month.

2: More expensive products or events should be scheduled for the beginning of the month when consumers have recently received their payments.

3: Companies should expect account receivables to increase at the beginning of the month.

4: Payment plans are common in Brazil. Forcing consumers to choose a payment day in the beginning of the month will more likely ensure payment, while placing this date at the end of the month could mean rejection of payments.

5: Promotions should be more common at the end of the month when consumers pockets are tighter.