Several factors influence employee’s base pay in Brazil, and we have identified the main determinants of remuneration. Understanding them also means identifying what companies pay, and thus being able to better negotiate your remuneration.
Jump straight to a key chapter :
Table of Contents
Internal factors
- Education and skill set: Firstly, base salary in Brazil highly depends on your education level. Indeed, specialized knowledge and skillset are usually one of the first factors which affect your base salary as some professions require a strong expertise. Moreover, top degree or world known universities have a positive influence on your base pay.
- Seniority: Secondly, in most countries, seniority is strongly correlated with experience. Most unions see this seniority as one of the most objective criteria to increase your base salary. However, companies rely more on your experiences to settle your base salary. Indeed, they assume that an experienced employee will require less training. In the end, less training usually means cutting costs and freeing up time.
- Success and performance: Companies usually pay attention to these two factors as it allows the company to grow and succeed. It also motivates the worker to do better in future. As a matter of fact, good past achievements are positively correlated with base salary.
External factors
- Job requirements: Obviously, the tasks requested influence the level of pay. Generally, salaries are rising as skills, responsibilities, expertise, efforts or hazardous working conditions are increasing.
- Company size: The size of a firm impacts the salary of an employee. Also, the level of business maturity affects the salary. A start-up company will rarely pay as much as a multinational firm.
- Location: In the same way, the location of a company has a substantial influence on base pay in Brazil. Indeed, companies located in urban areas or megalopolis with a substantial cost of living will provide a higher salary to their employees.
Source: https://www.tecmundo.com.br/mercado/231707-paulo-estado-maior-media-salarial-brasil.htm
- Supply and demand in the labor market: The dynamics of supply and demand in the labor market is another factor affecting base pay. Somehow related with the location factor, wages rates are different and could be higher in a market where the demand is superior to supply.
Carefully assessing these internal and external key factors will ensure a great alignment with compensation best practices when making a wage rate decisions.
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