Brazil's Congress Approves Cut to 40‑Hour Workweek

Overview

• The Senate approved constitutional amendment PEC 221/2019 in both rounds with identical votes of 75 in favor, 1 against and 5 abstentions, and the text must be promulgated by the Mesas of the Chamber and Senate to take effect.
• The change will be phased: two months after publication the legal maximum falls to 42 hours and two paid weekly rest days take effect, and 14 months after publication the cap drops to 40 hours with no permitted nominal salary cuts.
• The amendment preserves collective bargaining as the main tool for transition, allows negotiated compensation regimes for continuous‑service sectors such as health and security, and exempts high‑earning university graduates from standard time‑control rules while still requiring two days off.
• Estimates of economic impact diverge sharply: industry groups (CNI, CNC) warn of large cost increases and GDP effects, with CNI projecting R$178–267 billion a year in higher employer costs, while Dieese, Ipea and some academics say effects on jobs and productivity could be smaller or positive.
• The rule covers formally employed workers (Dieese estimates about 22 million currently work more than 40 hours), leaves informal and self‑employed people outside its scope, and will require complementary ordinary laws and collective agreements to set practical rules for small firms and sectoral operations.