Business · Economy · 1 hr ago

Paid lunch-break proposal could raise labor costs, estimates suggest

Paid lunch-break proposal could raise labor costs, estimates suggest

Brazilian lawmaker Duda Salabert proposed making lunch breaks paid work time for employees, without reducing their salaries.

The bill would count up to two hours of lunch each day as working time.

Estimates of the added labor cost vary: one economist put the increase at 12.5% for a one-hour paid break, while another estimate put it at 14% for that break and 33% for two hours.

The proposal comes as Brazil is also moving to reduce the maximum workweek from 44 hours to 40, with two days off.

That reduction is due to be phased in, first lowering the limit to 42 hours and later to 40.

Employers could face higher costs if workers receive the same pay for fewer hours of active work.

The proposal has been presented, but the available information does not say what happens next.

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What people are saying

Zeina LatifEconomist at Gibraltar Consulting
Really concerning. Even more so given the reduction in the workweek already approved.
via CNN Brasil
Instituto Livre MercadoInstitute
The proposal starts from a simple and seductive promise, but one that is impossible to fulfill: giving workers something without anyone paying for it. The numbers do not add up.
via CNN Brasil
Working less for the same pay is desirable, and it is possible, but only one way: through greater productivity.
via CNN Brasil