Brazil's Congress has approved a constitutional amendment that ends the traditional schedule of six workdays followed by one day off. In addition, this labor reform gradually reduces the maximum weekly working hours from 44 to 40, without reducing workers' pay. 

The measure will be implemented in phases and represents one of the most significant labor changes in the country in decades. 

The workweek in Latin America 

Across Latin America, governments are rethinking working-time regulations in order to improve work-life balance without sacrificing productivity. As a result, Brazil is not the only country in the process of reducing workers' hours. 

Chile currently operates under a 42-hour workweek, although it will reach 40 hours in 2028. Colombia completed its transition to a 42-hour workweek in July 2026, while Mexico has begun a gradual reduction that will bring the standard workweek to 40 hours by 2030. 

Other countries are taking a different approach, focusing on greater flexibility rather than shorter schedules. Argentina allows various working-time arrangements through collective bargaining agreements. Meanwhile, Costa Rica is considering a proposed 4×3 model, under which employees in eligible sectors could work four 12-hour days followed by three days off. The proposal has passed its first legislative debate but has not yet become law. 

Impact on multinational groups 

Likewise, for international companies, these changes are reshaping workforce planning, labor costs, compliance requirements, and productivity strategies across the region. 

LATAM by the Numbers 

  • 27.8 million Coursera learners in LATAM. 
  • 15 out of 20 countries outperform the global English benchmark: more and more Latin American professionals are able to operate in international business environments. 
  • 51-point improvement in English proficiency among adults aged 31 to 40: this reflects significant gains in workforce communication skills over the past decade. 
  • 40-hour workweeks are gaining ground: labor reforms across the region are changing how companies attract, retain, and manage talent. 

Investment in Brazil's workforce is being disrupted by this reform, announced by the government in the middle of the presidential election. International payroll management is complex given the diversity of systems, a hallmark of Latin America. 

If you would like to learn more about Auxadi's payroll and global mobility services, talk to our experts to go over your specific needs in Latin America. 

Attend LATAM Days Miami 

The second edition of our flagship event in the city will take place on November 10. In light of the constant political and economic evolution of the Latin American region, LATAM Days Miami will support CFOs in their international expansion into Latin America. 

Over the course of one morning, we will bring together professionals and academics who are experts in finance and in the region to present the different business avenues that Latin America offers. Interested in attending? 

Read more about this meeting and register. 

About Auxadi

With 26 subsidiaries across Europe, the United States, and Latin America, Auxadi is today the leading Spanish accounting firm serving multinational companies and real estate investment funds. Through its technology-driven approach and strong client-focused culture, Auxadi acts as an extension of its clients' finance departments worldwide, providing accounting, tax, payroll, transfer pricing, and corporate legal services.

Its proprietary MySPV technology platform, more than 300 employees, and over 1,700 clients have positioned Auxadi as a benchmark in the tech-enabled services sector, not only in Spain but internationally.

Author:

Manrique Blen

VP – Head of BD & AM Miami Hub

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Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance, payroll, transfer pricing, and corporate legal services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 26 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.

All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.