Brazil's independent contractors face benefit gaps and business‑management challenges

A survey by the HUG research institute found that 60.3% of freelancers and self‑employed professionals (PJ) in Brazil do not receive any traditional employment benefits. Only 17.8% have a private health plan and 13.7% keep a dedicated vacation fund. Most respondents have been working as freelancers for more than a year, with nearly half in this model for over four years, indicating a long‑term shift toward flexible contracting.

Economist Gustavo Loureiro Gomes, CEO of HUG, said the data highlights the need for mechanisms that provide security and sustainability for these workers, suggesting a hybrid model that combines autonomy with protection. Meanwhile, SEBRAE data shows that micro‑ and small‑businesses make up about 99% of Brazilian firms and contribute roughly 30% of GDP. Accountants warn that many new entrepreneurs fail to manage finances properly, mixing personal and business accounts, lacking cash‑flow tracking, and ignoring tax obligations. Paulo de Tarso of CSMalta Contabilidade stresses the importance of organized accounting and strategic financial planning to avoid premature business failure.