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Mandatory Union Contribution reintroduced in Brazil by the end of 2026?

Market Rules

The Brazilian labor reform of 2017 (Law 13.467/2017) modified various provisions from the Consolidation of Labor Laws (CLT, in the Portuguese abbreviation). One them was the end of the so-called “union tax”, an former obligation for each registered worker to pay to unions the equivalent to one day of work a year, while companies paid a value fixed in table to unions.

If a norm reintroducing a mandatory periodic payment by workers and/or companies to unions is approved in Brazil's National Congress (both the House and the Senate) by the end of the legislative session of 2026, this market will resolve to "Yes".

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