Brazil Backs Shorter Workweek as Employers Press for Offsets

Overview

• Congressional leaders and the government signaled support to advance a PEC ending the 6x1 schedule and reducing the legal workweek to 40 hours without pay cuts this year.
• FecomercioSP estimates the change would raise labor costs by 22%, affect 63% of formal contracts, and could risk 1.2 million jobs in the first year, with the hourly cost on a R$2,200 salary rising from R$10 to R$12.22.
• The CNI and CNC warned that a shorter statutory week could undercut competitiveness and threaten formal job creation, urging solutions via collective bargaining.
• Alternatives under discussion include hourly remuneration, a three‑year transition from 42 to 41 to 40 hours, and payroll tax relief for labor‑intensive firms, reflecting proposals floated by lawmakers and sector groups.
• Sector entities are preparing political outreach, including to the powerful FPA, as new polling shows majority support for ending 6x1 and Ipea estimates a 7.84% rise in labor costs from a 44‑to‑40 hour cut with limited operational impact for large sectors.