Brazil Senate Approves 40-Hour Workweek Reduction

Key Facts

1The Brazilian Senate approved a measure to cut the workweek to 40 hours without reducing pay by a 75-1 vote.

2The measure is expected to benefit approximately 37 million workers in Brazil.

The Brazilian Senate approved a measure to cut the national workweek to 40 hours without reducing pay by a 75-1 vote. Fortune reported that the legislation, backed by President Lula da Silva, aims to improve worker quality of life and represents a significant legislative victory ahead of the upcoming election runoff. The measure is expected to benefit approximately 37 million workers in Brazil, with businesses granted a 14-month window to adopt the shorter hours.

This labor reform arrives amid existing inflationary pressures in the economy, as data from October 9, 2026, showed Brazil's annual inflation rate at 4.58%. While the move is a milestone for labor rights, it may increase corporate costs and contribute to price stability challenges, following a monthly inflation reading of 0.82% recorded on the same date.