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Brazil Backs 40-Hour Workweek Without Pay Cuts, Rules Out Employer Compensation

Congress now weighs the plan, with broad public backing.

Overview

  • Labor Minister Luiz Marinho said the government will not grant tax breaks or other financial compensation to companies if the 6×1 schedule ends.
  • The administration recommends an immediate reduction from 44 to 40 weekly hours with two days off, preserving collective bargaining to organize shifts in sector-specific agreements.
  • Officials discourage an immediate move to a 36-hour week and call for a technical, staged path if lawmakers choose to pursue that target.
  • Employer-cited FGV-Ibre studies project roughly 638,000 formal job losses and a 0.7% GDP decline under a 44-to-40 cut without salary reductions, with separate estimates warning of up to a 6.2% GDP drop in a direct shift to 36 hours.
  • A new Datafolha survey shows 71% of Brazilians favor ending the 6×1 regime, with support particularly strong among women.