The Brazil growth story is causing what was unimaginable a few years ago: the wages of workers in Brazil are higher than in European nations and the United States. According to consultancy firm Michael Page, the salaries can go up to 85% higher, with all appropriate currency conversions already included.
2. A sales manager earns about 80% more in Brazil (R$18,000) than in the United States (R$10,000 U.S.).
Our take on these news: the rise of wages is making Brazil uncompetitive, companies earnings are shrinking. The labor shortages pointed out by Michael Page are only part of the problem. The main issues are government costs and high taxation. An example: to hire a R$10,000/month professional, the employer must pay more than R$10,000/month in taxes and fees to the federal government
(after all, who will pay for the bribery?). In other words, a R$10,000 a month professional costs the company more than R$20,000 a month. Talking about being uncompetitive…