Brazil Expands Paternity Leave, Pay

Brazil has approved new legislation expanding paternity leave and introducing a new social security-funded benefit known as “paternity pay.” The change represents a significant shift in how paternity leave is structured and funded in Brazil and will require attention from payroll and HR teams supporting employees in the country.

Under the current rules, fathers are entitled to five days of paid paternity leave. This will gradually increase to 10 days in 2027, 15 days in 2028, and 20 days in 2029. The new legislation also introduces a broader framework that gradually expands paternity leave and formally establishes a social security-funded paternity benefit.

Shift from Employer-Paid Leave to Social Security Benefit

One of the key changes is that paternity leave will be considered a social security benefit, similar to maternity pay. In practice, this means employers will still pay employees during the leave, but the cost can be offset against social security contributions, reducing the financial burden on employers and shifting it to the social security system. The legislation also introduces a gradual increase in the length of paternity leave, extending it from the current five days to 20 days.

There are further provisions connected with the new rules, such as:

• The possibility of splitting paternity leave into two periods
• Extended leave in cases where the mother or newborn is hospitalised
• Additional leave if the child has a disability
• Job protection during the leave period and for a period after returning to work

These changes demonstrate that Brazil is gradually extending family-related leave and aligning more closely with international trends in parental leave and social protection.

Practical Implications for Payroll and HR

For payroll and HR teams, these changes mean that paternity leave in Brazil will become increasingly regarded not only as an employment law issue but also as a social security and payroll reporting obligation. Payroll teams should consider the following actions:

• Review payroll system configuration for paternity leave and social security benefit processing
• Ensure correct reporting and reimbursement processes through eSocial
• Update payroll policies and employee communication regarding paternity leave entitlements
• Coordinate with HR to ensure correct documentation and leave tracking
• Monitor the phased implementation timeline as the leave period increases over time

As with maternity leave in many countries, payroll will be essential in ensuring the accurate payment, reporting, and reimbursement of the new paternity benefit.

Key Takeaways

The expansion of paternity leave and new social security-funded benefits mark a major change in Brazil’s employment and social security system. For payroll teams, this underscores the need to track legislative updates, understand how leave payments interact with social security, and update payroll processes.

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Max van der Klis-Busink, MCIPP, RPP, is the Owner of Passion For Payroll.