More on Brazil Cost. This Time: Salaries

This Exame article talks about a very relevant issue for business owners in Brazil – cost of labor. Employee overhead taxes are the highest in the world. The silver-lining is probably that the actual salaries are much lower than, lets say, in the USA. One thing to be aware of, however, is that there are various rules that require hiring a minimum amount of people (which could be much higher than actually needed). A tour at a local shopping mall highlights this very clearly – the shops have more attendants than customers. What I heard was that there is a person-per-retail-square-meter requirement.

So one’s math cannot be average salary * number of employees. It should be something like average salary * 1.6 (at least) * max (number of employees, minimum legal headcount requirements).
http://exame.abril.com.br/economia/noticias/brasil-lidera-ranking-de-impostos-sobre-trabalhadores

Posição País Custo extra para salário de US$ 30 mil por ano Percentual sobre salário
Brasil US$ 17.267 57,56%
Itália US$ 15.544 51,84%
França US$ 12.836 42,79%
Eslováquia US$ 10.560 35,20%
República Tcheca US$ 10.200 34%
Espanha US$ 10.020 33,40%
Áustria US$ 9.357 31,19%
China US$ 9.263 30,88%
Romênia US$ 8.421 28,07%
10º *Japão US$ 7.738 25,79%
11º *Alemanha US$ 7.263 22,81%
12º *México US$ 6.788 22,63%
13º Rússia US$ 6.319 21,06%
14º *Austrália US$ 5.249 17,50%
15º Holanda US$ 4.867 16,22%
16º Israel US$ 4.221 14,07%
17º Malásia US$ 3.804 12,68%
18º Nigéria US$ 3.600 12%
19º Irlanda US$ 3.225 10,75%
20º *Canadá US$ 2.745 9,15%
21º *Estados Unidos US$ 2.652 8,84%
22º Reino Unido US$ 2.486 8,29%
23º Emirados Árabes US$ 2.182 7,26%
24º Dinamarca US$ 1.632 5,44%
25º Índia US$ 1.101 3,67%
Média dos BRICs   US$ 8.488 28,29%
Média global   US$ 6.757 22,52%

Source: Exame

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Inocentes de Belford Roxo – Parading at Sambodromo

As promised, added some pictures. Unfortunately, it’s impossible to take them during the parade but watching everyone getting ready to line up was quite cool as well!

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Carnaval in Sambodromo

My list of things to do before I die is officially one item shorter. I participated in the Carnaval parade in Rio de Janeiro. Those samba school guys are damn creative!!!

much nicer photos can be seen here:
http://g1.globo.com/rio-de-janeiro/carnaval/2013/fotos/2013/02/fotos-desfile-da-inocentes-de-belford-roxo.html

But here is one I took!

Carnaval is in town

The first day of Carnaval in Rio brought even more happiness to my life. Starting from a “cool” bloco in Gavea (beautiful, sweaty people), to some improvised block party at the center of action in Leblon (which was raided by the police), ending at a family-oriented clown bloco in Laranjeiras where I ended up dancing Xuxa songs while been sprayed with foam and confetti!

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Groupthink of the week: Team Lunch

Situation: team lunch with the boss. The boss keeps complaining that the prices of the menu items went up by a lot, repeating the same thing again and again for about 20 mins and telling the waiter that soon they will close down as no one will be willing to pay so much. He then proceeds to order the cheapest dish on the menu – chicken something. All three other colleagues in their turn order chicken as well, repeating the boss’ complaints and making angry faces. My turn comes as well, and I really want to ask for the steak, not caring to pay the extra five bucks. Then, I stop for a moment, remember that sometimes it’s better think a bit more long term and maintain my relationships. Suppressing my rebel tendencies, I then order the chicken as well.