Remote’s guide to employing in

Brazil
brazil flag

Make employment in Brazil easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Brazil, all in one easy-to-use platform.

  • Capital City

    Brasília

  • Currency

    Real (R$, BRL)

  • Languages

    Portuguese

  • Population size

    21,25,86,000

Services available in this country:
Employer of Record ProductContractor ManagementGlobal Payroll

Facts & Stats

Brazil Map Illustration
  • Capital City

    Brasília

  • Currency

    Real (R$, BRL)

  • Languages

    Portuguese

  • Population size

    21,25,86,000

  • Ease of doing business

    Medium

  • Cost of living index

    $$ (101 of 139 nations)

  • Payroll frequency

    Biweekly

  • VAT - standard rate

    17-19%

  • GDP - real growth rate

    1.1%

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.

Risks of misclassification

Brazil, like many other countries, treats self-employed individuals or contractors and full-time employees differently. 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 labour 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.

Minimum Wage

From January 1, 2024, the value of the minimum wage will be R$ 1,412.00 (one thousand, four hundred and twelve reais).

The daily value of the minimum wage will correspond to R$47.07 (forty-seven reais and seven cents) and the hourly value will be R$6.42 (six reais and forty-two cents).

Payroll Cycle

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

Employees in Brazil are also entitled to a 13th month payment. This is an amount equal to one month’s salary which is paid out to employees in two parts. The first part is paid in November by the 30th and the other half up until the 20th December.

The pro-rated 13th-month salary is also due upon termination. The 13th-month payment is a legally mandated benefit and not part of the base salary. During negotiations with candidates, it is important to clearly state what salary is being offered and whether it is inclusive or exclusive of the 13th-month payment.

Onboarding Time

We can help you get a new employee started in Brazil fast. The minimum onboarding time we need is only 3 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.

9 Public holidays

Jan
Monday 1 January, 20241New Year's Day (Ano Novo)
Mar
Friday 29 March, 20242Good Friday (Sexta-feira Santa)
Apr
Sunday 21 April, 20243Tiradentes (Tiradentes)
May
Wednesday 1 May, 20244Labour Day (Dia do Trabalhador)
Sept
Saturday 7 September, 20245Independence Day (Dia da Independência)
Oct
Saturday 12 October, 20246Our Lady of Aparecida (Nossa Senhora Aparecida)
Nov
Saturday 2 November, 20247Day of the Dead (Dia de Finados)
Friday 15 November, 20248Proclamation of the Republic (Proclamação da República)
Dec
Wednesday 25 December, 20249Christmas Day (Natal)

Competitive benefits package in Brazil

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Brazil are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Brazil

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

  • 20.00%

    Public Pension Fund (INSS)

  • 8.0%

    Severance Fund (FGTS)

  • 5.8%

    Education contribution, INCRA, SENAI, SESI and SEBRAE contributions

  • 1-3%

    Accident Insurance

  • 13th Salary - Also known colloquially as a 'Christmas Bonus', this payment is an amount equal to one month’s salary. The first half of this payment must be paid any time up until the 30th of November, and the other half up until the 20th of December. The pro-rated 13th-month salary is also due upon termination. The 13th-month payment is a legally mandated benefit and not part of the base salary. During negotiations with candidates, it is important to clearly state what salary is being offered and whether it is inclusive or exclusive of the 13th-month payment. The Christmas Bonus is calculated at 8.33% of the base annual salary.

  • Vacations Bonus - Professionals in Brazil are entitled to 30 calendar days of holiday per year after every 12 months of service, and the employee must be paid 1/3rd of a month’s salary as a Vacations bonus. Holiday pay and holiday bonus payments are pro-rated upon termination. The Holiday bonus is calculated at 2.77% of the base annual salary.

Types of leave

Professionals in Brazil are entitled to 30 calendar days of paid annual leave per year after each 12 months of service. The holiday 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.

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 probationary period allowed in Brazil is 90 days (two terms of 45 days). If the initial trial period is 45 days, it may be renewed but only for an additional term of 45 days.

Fair Pricing in Brazil

Employer of Record

Hire and pay your global team

Starting at $599/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app