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.

Travel Tip: Know Your Rights

Here's a travel tip for those traveling to Brazil for the first time or returning. Unlike in other countries, such as the United States where baggage restrictions and fees have become the norm, Brazil has a generous policy that allows for larger and more baggage and not additional fees.

American Airlines, which has several daily routes to and from Brazil, allows up to 5 checked bags with a fee being incurred only on the third bag. While checked baggage for all other countries is limited to 50 lbs (23 kg), the weight limit is 70 lbs (32 kg) for travelers to Brazil. Azul Airlines, a preferred airline of this author, provides the same allowances.

Before your next trip make sure you have a printout or the airline link available on your smartphone. From personal experience, airline employees may not believe you until you prove it in print.

For more on American Airlines baggage allowances to Brazil see  American Airlines

For more on Azul Airlines baggage allowances to Brazil see (in Portuguese) Azul Airlines