* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Brasília
Currency

Brazilian Real (R$)

Timezone

BRT (GMT -3)

Payroll
Bi-Weekly
Employment Cost

7.50% - 14.00%

Annual Leave

30 days

In-demand Specialties*
Agriculture, Banking, Oil And Gas

The Ultimate Guide to Hiring Employees in Brazil

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Brazil-guide

Key Considerations Before Hiring In Brazil

Employing in Brazil requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Brazil with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Brazil quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Brazil, a global leader in mining, agriculture, manufacturing, and services, boasts the largest economy in Latin America and ranks ninth worldwide.

As a founding member of MERCOSUR and a part of BRICS, it enjoys strong regional ties and access to emerging markets.

With a skilled workforce in fields like IT and marketing and cost-effective labor, Brazil offers attractive options for international hiring.

Its robust infrastructure and widespread internet connectivity further facilitate efficient networking and communication, making it an appealing destination for businesses.

playroll-good-to-know

Fundamental Aspects of Employment in Brazil

In Brazil, verbal agreements are legally valid, but it is recommended to have written employment contracts. These contracts are generally indefinite, with the option for fixed-term contracts of up to two years in certain situations. They must be in Portuguese and use the local currency, covering essential employment terms such as:

  • Identification of both parties
  • Workplace, working hours, and overtime
  • Starting date (and duration for temporary contracts)
  • Job description, duties, and responsibilities
  • Basic wage (including compensation or benefits)
  • Total number of holidays
  • Notice periods for employment termination
  • Probation period
  • Company policies
  • Travel and transfer options
  • Reference to collective bargaining agreements

Probationary Period in Brazil

Employees with indefinite contracts in Brazil undergo a 45-day probationary period, which may be extended to 90 days.

Working hours in Brazil

In Brazil, the typical work schedule involves 44 hours per week, distributed over 8 hours per day. However, the maximum weekly and daily hours can vary from this standard, as stipulated in the employment contract or collective bargaining agreements.

Overtime in Brazil

Overtime, exceeding the standard 8 hours a day in Brazil, is compensated at 50% of the regular hourly wage, with potential increases based on collective bargaining agreements. For Sundays or holidays, the extra payment is 100%. Exemptions from overtime apply to roles such as trust, managerial, executive positions, and remote workers.

Navigating Key Aspects of Payroll in Brazil

Brazil has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Brazil

1 January - 31 December is the 12-month accounting period that businesses in Brazil use for financial and tax reporting purposes.
bi-weekly

Payroll Cycle in Brazil

The payroll cycle in Brazil is usually bi-weekly, with employees being paid on the 5th and 20th of the month.
6 BRL p/h

Minimum Wage in Brazil

The minimum wage for employees in Brazil is typically 6 BRL per hour, amounting to ~1,320 BRL per month for a typical 44 hour work week.

Minimum wages and salaries in Brazil

Some states in Brazil enforce a regional minimum wage which must be observed if it surpasses the national minimum wage.

Bonus Payments in Brazil

Workers with a year of service are eligible for a full 13-month salary, typically disbursed at the year's conclusion. This payment occurs in two parts: in November (free from INSS deductions or withheld taxes) and in December (with INSS contributions and tax withholding applied in the second instalment).

Comprehensive Overview of Employment Taxes in Brazil

Understanding the tax obligations for both employers and employees is crucial when operating in Brazil's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Brazil.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 7.50% - 14.00% on top of the employee salary in Brazil.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Brazil, the typical estimation for employee payroll contributions cost is around 7.50% – 14.00%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Income tax in Brazil follows a progressive rate structure, with additional factors such as marital status and income level influencing the overall tax rates.

Tax Rate Income Bracket

Pension in Brazil

The pension for old-age retirement in Brazil depends on gender and age. Women are eligible at 62 years old with a minimum of 180 months of social security contributions, while men qualify at 65 years old with a minimum of 240 months of contributions. The pension amount is 70% of the employee’s salary, with an extra 1% for each additional 12 months of contributions, up to a maximum of 100%.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Brazil tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Brazil

When it comes to terminating employment in Brazil, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Brazil, termination at-will is permitted with exceptions for specific employees (e.g., pregnant individuals, those injured at work, or elected presidents of the internal commission for accident prevention). Acceptable termination scenarios include:

  • Mutual agreement
  • Voluntary resignation by the employee
  • Unilateral termination by the employer with valid reasons (such as gross misconduct, substance abuse, breach of trade secrets, or disciplinary dismissal)
  • Conclusion of the employment contract due to expiration.

Notice Period

Notice periods in Brazil are typically stipulated in employment contracts or collective agreements, with a standard provision of 30 days. However, the specific duration may vary based on the grounds for termination and the employee's tenure with the company:

  • Termination by mutual consent – 15 days
  • 1 year of service – 30 days’ notice
  • More than 1 year of service – 30 days’ notice + 3 days for each year of service (maximum of 60 days)

Severance Pay

Employees terminated without cause in Brazil receive entitlements such as the balance salary, payouts for unused holidays, proportional 13th salary, and 40% of their Fundo de Garantia do Tempo de Serviço (FGTS) contributions. Conversely, termination with cause grants them nearly the same benefits, excluding the additional FGTS payment.

Annual Leave Entitlements and Company Policies in Brazil

The annual leave entitlement in Brazil is 30 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Brazil

In Brazil, regional and national holidays are determined by federal, state, and municipal laws. They are not part of the minimum paid leave entitlement but are taken in addition to annual leave. Some holidays are movable and not observed universally across the country. National holidays in Brazil include:

Holiday Date

Paid Time Off in Brazil

Maternity Leave in Brazil

Paternity Leave in Brazil

Sick Leave in Brazil

Bereavement Leave

Care Leave

Parental Leave In Brazil

Brazil's Benefits Built Into Playroll

Competitive benefits package in Brazil

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Brazil's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Brazil

Make your benefits package in Brazil a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Brazil

Playroll allows you to provide localized benefits for employees in Brazil within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Brazil create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Brazil

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Brazil.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!