Hire employees
and contractors in Brazil

Remote’s guide to employing in Brazil.

Capital city
Brasília
Currency
Real (R$, BRL)
Population size
212,586,000
Language spoken
Portuguese
01

Facts & stats

As the largest country in South America and the sixth-largest in the world by population, Brazil is home to millions of talented people in a variety of industries. Brazil is one of seven countries to speak Portuguese as its primary official language. Each year, Rio de Janeiro plays host to the biggest carnival in the world, attracting visitors from around the globe.

Brazil Map
  • Capital city
    Brasília
  • Currency
    Real (R$, BRL)
  • Language spoken
    Portuguese
  • Population size
    212,586,000
  • Ease of doing business
    Medium
  • Cost of living index
    31.82
  • Payroll frequency
    Biweekly
  • VAT - standard rate
    17-19%
  • GDP - real growth rate
    1.1%
02

Grow your team in Brazil with Remote

Employing in Brazil usually requires employers to own a legal entity in the country to manage payroll, tax, benefits, and compliance through their own in-country resources. The finer nuances of employment regulations in Brazil can make full compliance with employment laws an onerous process. To employ workers in Brazil legally without an entity, you need the help of a global employment solutions provider, like Remote.

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Brazil risks illustration

Risks of misclassification

Brazil, like many other countries, treats self-employed contractors differently from full-time workers. Misclassification of contractors in Brazil may lead to fines and penalties for the offending company.

03

Employing in Brazil

Over the last few years, Brazil has made several changes to its employment laws and increased the flexibility of its legislation to attract more foreign investment. Employers planning to open an office in Brazil or hire a remote team in Brazil have two options: incorporate their own entity or work with a global employment solutions provider, also known as an employer of record.

Employment contracts in Brazil must be drafted in Portuguese. Employment of expats requires the approval of the labor department. If a probationary period is used, the period cannot last longer than 90 days.

To employ workers in Brazil, contact Remote to learn more about your options.

Public holidays

Date Holiday Name Extra information
New Year's Day
Good Friday
Monday after Easter
Tiradentes
Labour Day
Independence Day
Our Lady of Aparecida
Day of the Dead
Republic Proclamation Day
Christmas Day

In addition to official holidays, Brazil also observes election days as national holidays.

Holidays in Brazil can be national, state, or municipal, and some employees may be entitled to more public holidays depending on their work location.

Minimum
Wage

In Brazil, the minimum wage is 1,100 Brazilian reals per month (about US $211.81), paid 13 times a year.

Payroll
Cycle

For customers of Remote, all employee payments will be made in equal bi-monthly instalments, payable in arrears.

Onboarding
Time
We can help you get a new employee started in Brazil fast. The minimum onboarding time we need is only 14 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

04

Competitive benefits package in Brazil

Beyond statutory benefits, employers should consider offering additional benefits for employees in Brazil to attract and retain the best talent. A competitive benefits package may include perks such as:

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05

Taxes in Brazil

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Brazil.

  • Employer

    • 20.00% - Public Pension Fund (INSS)
    • 8.0% - Severance Fund
    • 5.8% - Additional Contributions
    • 1-3% - Accident Insurance
  • Employee payroll taxes

    • 8-11% - Social Security (Max of 482.93 BRL)
  • Employee income taxes

    • 0 (Up to 1903.98 BRL)
    • 7.50% (1903.98-2826.65 BRL)
    • 15.00% (2826.65-3751.05 BRL)
    • 22.50% (3751.05-4664.68 BRL)
    • 27.50% (4664.68 BRL & above)
06

Types of leave

Statutory
leave

Professionals in Brazil are entitled to 30 calendar days of paid annual leave per year after each 12 months of service. The vacation period is typically taken in one block (or split between 20 days and 10 days). In addition, the employee must be paid 1/3rd of a month’s salary as holiday bonus.

Pregnancy and
maternity leave

Mothers in Brazil are entitled to 120 days of maternity leave at 100% their regular salary, paid for by the employer, who is later refunded by the government. This leave applies to adoption as well. Employees, contractors, and most other worker classifications are all eligible for the benefit.

Partner/Paternity
leave

Fathers in Brazil are entitled to up to five days of paid paternity leave. Compensation for paternity leave is set at 100% of the employee’s salary.

Same-sex male couples in Brazil may apply to receive full maternity leave benefits beginning on the day the caregiver takes leave from work.

Other
leave
  • Bereavement leave: Employees are entitled to two consecutive days of paid leave following the death of an immediate family member such as a spouse, parent, or child.
  • Marriage leave: Employees in Brazil are entitled to three consecutive days of paid leave when they get married.
07

Employment
termination

Termination process

Brazilian employment law allows either party to give notice to terminate the contract of employment. In the event of termination of a local employee, the employee’s salary must be paid on the last day of employment.

In case the employee resigns without notice, the employee’s salary for the period worked must be settled within seven days of the last day of employment. In case of termination due to misconduct, the employee’s salary must be settled on the last day of employment. If extenuating circumstances prevent immediate payment, the employee must still be paid within three business days

Notice period

Employees are required to give their employers 30 days’ notice to terminate their employment.

When the employer decides to terminate the employment, the statutory notice period depends on the duration of employment.

  • For the first year, the notice period is 30 days.
  • For every year after the first year, the notice period increases by three days, up to a total maximum of 90 days.

Severance pay

In Brazil, the severance pay depends on the nature of termination. While severance pay is not required in all cases, severance is typically one month of pay for every year the person has worked for the company.

Employers in Brazil must contribute 8% of each employee’s salary to a government-run severance fund. When an employer terminates an employee, the employer must pay 40% of the balance in the fund as a termination fine. If the employee and employer mutually agree to part ways, the employer must pay 20%.

Probation periods

The maximum probation period for employees in Brazil is three months.

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