Overview
- The government’s proposal caps the workweek at 40 hours with no pay cuts and limits schedules to five workdays and two days off.
- Boulos said talks in Congress have advanced after a meeting with Chamber President Hugo Motta, with a vote expected in the first half of 2026.
- Employer groups oppose the change, warning of higher operating costs and potential hiring needs, which the minister called overstated.
- Officials cite evidence including an FGV study of 19 firms where 72% saw revenue gains after reducing hours and international examples from Japan and Iceland.
- The plan includes a transition and compensations for micro and small businesses, as Boulos also urges rate cuts from the 15% Selic ahead of next week’s Copom meeting.