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

  • Languages spoken

    Portuguese

  • Availability

    Remote-Owned Local Entity

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

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.

  • Capital city

    Brasília

  • Currency

    Real
    (R$, BRL)

  • Languages spoken

    Portuguese

  • Population size

    212,586,000

  • 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%

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 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.

Public holidays

Date
Holiday Name
Extra information
Saturday, January 1, 2022New Year's DayOfficial holiday
Monday, February 28, 2022Shrove Monday (Carnival holiday)Vary every year. Observed, but not an official federal holiday.
Tuesday, March 1, 2022Shrove Tuesday (Carnival holiday)Vary every year. Observed, but not an official federal holiday.
Wednesday, March 2, 2022Ash WednesdayVary every year. Observed, but not an official federal holiday.
Friday, April 15, 2022Good FridayVary every year. Observed, but not an official holiday.
Thursday, April 21, 2022Tiradentes’ DayOfficial holiday
Sunday, May 1, 2022Labor DayOfficial holiday
Thursday, June 16, 2022Corpus ChristiVary every year. Observed, but not an official holiday.
Wednesday, September 7, 2022Independence DayOfficial holiday
Wednesday, October 12, 2022Our Lady AparecidaObserved, but not an official holiday.
Wednesday, November 2, 2022All Souls Day Official holiday
Tuesday, November 15, 2022Republic Proclamation DayOfficial holiday
Sunday, December 25, 2022Christmas DayOfficial holiday

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 installments, 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 20th and the second payment must be made by the end 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.

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.

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:

  • Medical insurance plan
  • Dental insurance plan
  • Vision insurance plan
  • Additional paid holidays
  • Flexible work schedule
  • Pension scheme
  • Life insurance
  • Other insurance

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)

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.

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.

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