Brazil Sanctions Law Expanding Paternity Leave to 20 Days by 2029

Overview

• Lula signed the paternity-leave law Tuesday, with publication expected Wednesday and new rules starting January 1, 2027 on a 10/15/20-day schedule through 2029.
• The law creates a paternity salary paid by Social Security, with employers reimbursed by the INSS, and it extends eligibility to self-employed workers, domestic workers and MEIs.
• Workers receive full pay and job stability during leave and for 30 days after return, with suspensions possible in cases of domestic violence or abandonment and extensions in cases like the mother’s death or a child’s disability.
• Fiscal estimates point to costs of about R$2.2 billion in 2027, R$3.3 billion in 2028 and roughly R$4.3 billion from 2029, and the law carves the benefit out of certain LDO spending caps while requiring identified funding sources.
• Operational details still await regulation, with outlets conflicting on whether the leave can be split into two periods after birth or adoption.