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[BUSINESS] · Brazil · 2 sources

Brazil Supreme Court rules overtime pay must be included in alimony calculations

The 4th Panel of Brazil's Superior Court of Justice decided that overtime earnings, even when paid only occasionally, are to be counted in the calculation of alimony when the benefit is set as a percentage of the payer's net income. The ruling highlights that any increase in the payer's financial capacity—temporary or permanent—can raise the amount owed, consistent with the principle that alimony reflects both the recipient's needs and the payer's ability to pay.

Brazilian labor law mandates that overtime work be compensated at a minimum of 50% above the regular hourly rate for work performed on weekdays and Saturdays, and at 100% for work on Sundays and public holidays. The calculation uses the employee's gross salary divided by standard hour‑factor tables (e.g., 220 hours for a 44‑hour week). Collective bargaining agreements may provide higher rates than those set by the Consolidation of Labor Laws (CLT).

Entities: Brazil · Consolidação das Leis do Trabalho (CLT) · João Otávio de Noronha · Superior Court of Justice (STJ)