# Brazil payroll loan and employment regulation updates > Live situation record from CLSTR: https://clstr.news/situations/brazil-payroll-loan-and-employment-regulation-updates > Updated: 2026-10-28T01:19:00.000Z. Sources: 2. Developments: 2. Regulatory changes regarding payroll-deductible loans and employment contracts have been implemented at both the state and federal levels in Brazil. In Rio de Janeiro, acting governor Ricardo Couto issued a decree to protect civil and military servants, retirees, and pensioners from over-indebtedness. The new rules limit total voluntary deductions to 40% of monthly income, with 35% for loans and 5% for payroll credit cards. To prevent excessive debt, new loans are prohibited if total deductions reach 70% of the payroll base. The regulations also cap the Total Effective Cost (CET) at 2% per month and mandate transparent disclosure of interest rates and final costs. At the federal level, updates to Law 8.745/1993 established new parameters for temporary employment, requiring a 24-month waiting period before rehiring certain temporary contract holders, unless a new selection process is conducted. Additionally, following the expiration of Provisional Measure No. 1.355, the payroll-deductible loan margin for federal executive employees returned to 45% of remuneration, partitioned into 35% for loans, 5% for payroll credit cards, and 5% for benefit cards. ## Timeline ### 2026-10-28: Brazil federal regulations update temporary contracts and payroll loans New Brazilian federal rules mandate a 24-month waiting period for rehiring temporary staff and restore the payroll loan margin to 45% for executive employees. 2 sources. https://clstr.news/cluster/brazil-federal-regulations-update-temporary-contracts-and-payroll-loans ### 2026-10-05: Rio de Janeiro implements new rules for payroll loans Rio de Janeiro has introduced new rules for payroll loans to combat over-indebtedness, limiting total deductions to 40% of monthly income and capping the Total Effective Cost at 2% per month. 5 sources. https://clstr.news/cluster/rio-de-janeiro-implements-new-rules-for-payroll-loans --- Cite as: Brazil payroll loan and employment regulation updates. CLSTR, https://clstr.news/situations/brazil-payroll-loan-and-employment-regulation-updates