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.
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.
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.
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.
|Date||Holiday Name||Extra information|
|New Year's Day|
|Monday after Easter|
|Our Lady of Aparecida|
|Day of the Dead|
|Republic Proclamation 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.
In Brazil, the minimum wage is 1,100 Brazilian reals per month (about US $211.81), paid 13 times a year.
For customers of Remote, all employee payments will be made in equal bi-monthly instalments, payable in arrears.
We can help you get a new employee started in Brazil fast. The minimum onboarding time we need is only two weeks.
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.
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:
Taxes in Brazil
Learn how employment taxes affect your payroll and your employees’ paychecks in Brazil.
- 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)
Types of leave
Statutory leave for employees in Brazil is dependent on the number of days the person is absent from work.
- Employees absent for fewer than five days receive 22 days of leave
- Employees absent for 6-14 days receive 18 days of leave
- Employees absent for 15-23 days receive 14 days of leave
- Employees absent for 24-32 days receive 10 days of leave
This leave is in addition to one state holiday, seven national public holidays, and four religious holidays. Employees may choose to cash in a portion of their unused leave for a bonus at the end of the year.
- Pregnancy and
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.
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.
- 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.
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
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.
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%.
The maximum probation period for employees in Brazil is three months.