How employee benefits are changing in Latin America

How Employee Benefits Are Evolving in Brazil – And Why Flexibility Now Leads the Way

At Howden, we’re always watching how global shifts shape local realities. This month, we sat down with our teams in Brazil and Mexico to uncover the biggest trends influencing employee benefits across Latin America. The standout priorities? Health, wealth, and – more than ever – flexibility.

A Post-Pandemic reset for benefits

While the war in Ukraine had limited direct impact on local benefits strategies, the ripple effects of COVID-19 are still very real in Brazil. Healthcare demand surged, costs rose, and the way people think about health and work changed for good.

In Mexico, the pandemic became the most expensive insurance event in history. As medical expenses skyrocketed, so did demand for comprehensive medical and life insurance – across all demographics, not just office-based roles. Brazilian employers are seeing similar pressure.

In Brazil, private health insurance is a staple benefit – but it’s getting pricier. Between 2023 and 2024, plan enrolment rose 2.7%, while costs jumped 5.05%. That’s more people to cover, at a higher cost.

To manage premiums, employers are getting proactive: promoting fitness, subsidising gyms, offering nutrition advice, and even covering early-stage treatments before they become costly claims. This marks a shift away from “big-ticket-only” cover and towards real everyday health support – something employees value deeply.

Mental Health has moved to the top of the list

“Mental health issues are no longer stigmatised,” says Claudia Machado, VP of Benefits at Howden Brazil. “Since the pandemic, people are more open to asking for help – and expect their employers to support them.”

Employee Assistance Programmes (EAPs), virtual therapy, and anti-anxiety tools are now standard in competitive benefits packages. The most effective programmes prioritise mental health, counselling, and crisis support over legal and notary services. And it’s making a difference.

Financial Wellbeing: A growing priority in Brazil

With inflation, interest rates, and living costs all on the rise, financial wellness is now front and centre.

In Brazil, financial literacy workshops are gaining traction – helping employees manage their money, reduce debt, and plan ahead. Subsidised emergency loans offer a safety net, while some companies are encouraging pension plan contributions to build long-term security.

As financial benefits become more popular, fringe perks are losing appeal. In tech, gaming rooms and free food are falling flat. Elsewhere, company cars and fuel subsidies are fading out – especially with the rise of remote and hybrid work.

That said, transportation allowances remain mandatory under Brazilian law, ensuring commuting costs are covered – although exact requirements vary by union agreements.

The flexibility revolution

Here’s the big shift: employees want benefits that reflect their own lives, not a generic package.

Flexibility and personalisation are now must-haves, not nice-to-haves. Claudia sums it up:
“Rigid benefits programmes are high risk. They make it harder to attract and retain top talent.”

For multinationals, this challenge is even greater. A one-size-fits-all approach simply doesn’t work across diverse cultural and economic landscapes. The solution? Equitable, not identical, benefits packages – tailored to each location, but aligned with global strategy.

What makes flexibility so tricky – and so worth it

Balancing employee needs, managing costs, staying compliant with local laws, and adapting to ever-changing expectations is no small task. Add in regional tax rules, legal frameworks, and cultural preferences, and delivering personalised benefits across Latin America becomes a real challenge.

But that’s where a global consultancy like Howden steps in. With local experts in every market and a global perspective, we help companies craft benefits strategies that resonate locally and work globally.