Brazil: exemption from social security contributions extended for 17 economic sectors

On 25 October, the Senate approved a bill extending the exemption from social security contributions for the 17 sectors of the economy that employ the most people in Brazil. Originally due to expire on 31 December 2023, the scheme has been extended for a further four years, until 31 December 2027. The aim is to reduce labour costs and encourage recruitment by allowing companies to replace the 20% payroll tax with rates of between 1% and 4.5% on their gross income. These sectors include...