Employer of Record in Brazil
Onboard, pay and manage employees in Brazil without opening a local entity. We assume the legal risks and keep you 100% CLT-compliant — you keep full operational control.
What is an EOR in Brazil?
An Employer of Record is a third party that legally employs your workers in Brazil on your behalf. Europortage becomes the legal employer — handling contracts, mandatory benefits, tax withholdings and terminations — while you direct your team's day-to-day work.
- CLT employment contracts drafted and signed locally
- 13th salary, vacations and mandatory benefits administered
- INSS, FGTS and income tax filed correctly (eSocial)
- Compliant terminations and severance handled end-to-end
When to use an EOR in Brazil
Hire without spending 3–6 months and USD 50k+ opening a CNPJ.
Onboard employees in as little as 48 hours.
Brazil's labor law is complex — we carry the risk for you.
Build a local team before committing to a legal structure.
What an employee really costs in Brazil
Expect total employment costs of roughly 40–45% on top of base salary. Here's where it goes:
| Employer contribution | Rate |
|---|---|
| INSS — social security | 20% |
| FGTS — severance fund | 8% |
| RAT — occupational risk | 1–3% |
| Terceiros — system S | 5.8% |
| Mandatory benefit | Amount |
|---|---|
| 13th salary | +1 monthly salary / year |
| Vacation | 30 days + 1/3 bonus |
| Transportation voucher | Variable (6% employee cap) |
| CBA benefits (meal, health…) | Variable by agreement |
Avoid USD 50,000+ in entity setup costs. Ask us for an exact estimate for your role.
Everything you need to know before hiring
A practical guide to Brazilian labor law — maintained by our local legal team.
Minimum wage 2026
Federal minimum: BRL 1,621.00/month. Some states set higher floors: São Paulo R$ 1,804.00 · Paraná R$ 1,984.16 · Santa Catarina R$ 1,730.00 · Rio Grande do Sul R$ 1,789.04.
13th salary
Paid in two installments: by November 30 and December 20.
Employer INSS has no salary cap — it applies to the full gross salary, unlike the employee's contribution.
| Employee INSS (2026) | Rate |
|---|---|
| Up to R$ 1,621.00 | 7.5% |
| R$ 1,621.01 – 2,902.84 | 9% |
| R$ 2,902.85 – 4,354.27 | 12% |
| R$ 4,354.28 – 8,475.55 | 14% |
Standard working hours
44 hours per week, up to 10 hours/day including overtime. Overtime is paid at a minimum of +50% (weekdays) and +100% on Sundays and public holidays. Night shifts carry a 20% premium.
Time tracking
Mandatory for companies with more than 20 employees. Exempt: external workers, remote workers and positions of trust.
At a glance
- 44h regular week (CLT)
- Overtime +50% weekdays
- Sundays/holidays +100%
- Night premium +20%
Mandatory benefits
13th salary, 30 days of vacation + 1/3 bonus, and transportation vouchers (employee co-pays up to 6% of base salary).
Common CBA benefits
Collective bargaining agreements typically add meal vouchers (VR), food allowance (VA), private health plans, private pension and life insurance.
Good to know
Benefits vary by industry and union agreement. Our local team maps the correct CBA for each hire — so your offer is always compliant and competitive.
Vacation
30 days of paid vacation after each 12 months worked, plus a mandatory 1/3 salary bonus. Unjustified absences reduce the entitlement progressively.
Parental & other leave
Maternity: 4 months (with job stability from pregnancy to 1 year after birth). Paternity: 5 days. Bereavement: 2 days. Marriage: 3 days. Blood donation: 1 day/year.
| Public holidays | 2026 |
|---|---|
| National holidays | 12 days |
| Carnival & Corpus Christi | Optional (most states) |
| Black Awareness Day | Nov 20 (national) |
Notice period
30 days plus 3 days per year of service, capped at 90 days. During notice, the employee may reduce the workday by 2 hours or take 7 days off.
Severance
Dismissal without cause triggers a 40% FGTS fine (20% in mutual agreement terminations), plus accrued salary, vacation and 13th.
Handled by Europortage
Terminations are one of the riskiest moments in Brazilian employment. Our legal team runs the entire process — calculation, documentation and filings — so it's clean for both sides.
This guide is provided for context only. When hiring through Europortage's EOR service, all payroll, tax, INSS/FGTS contributions, contract drafting and CLT compliance are handled directly by our team.
EOR vs. entity setup vs. contractors
Employer of Record
Hire fast and stay 100% compliant, without opening a company.
- Setup in 48–72 hours
- Very low risk — compliance carried by Europortage
- Payroll, benefits and taxes included
- Best for hiring fast and testing the market
Entity setup
Your own Brazilian company, with full control and full responsibility.
- 3–6 months to set up
- Medium risk — compliance carried by you
- Needs local payroll and accounting team
- Best for large permanent operations
Independent contractor
Fast to start, but risky if the relationship looks like employment.
- 1–2 weeks to start
- Very high risk — misclassification penalties
- No CLT benefits or protections
- Best for short, truly independent projects
Misclassification warning: treating employees as contractors (fixed schedule, direct supervision, exclusivity, company equipment) can result in severe penalties, back payments and legal disputes in Brazil.
Your direct partner in Brazil — not a reseller
We hire under our own Brazilian entity. You always know exactly who employs your team.
Local expertise
Deep knowledge of Brazilian employment law and business culture, built over 15+ years.
Fast deployment
Hire employees in as little as 48 hours, with bilingual support (PT/EN) during business hours.
100% compliance guarantee
Full CLT adherence with continuous legal monitoring — and transparent pricing, no hidden fees.
Hiring in Brazil, answered
What are my options to hire workers in Brazil?
Four routes: paying from HQ (not compliant), hiring contractors (high reclassification risk), opening a local entity (6–10 weeks and significant cost), or using an EOR like Europortage — the fastest compliant option.
How long does it take to set up a company in Brazil?
Typically 6 to 10 weeks for the registration alone, plus banking, tax registrations and ongoing accounting obligations. An EOR lets you hire in days instead.
Can I hire independent contractors in Brazil?
Yes, but only for genuinely independent work: no exclusivity, no fixed schedule, no direct subordination, and a clear service agreement. Otherwise you face reclassification liabilities.
How much does it cost to employ someone in Brazil?
Plan for roughly 40–45% on top of gross salary once INSS, FGTS, 13th salary, vacation bonus and benefits are included. Talk to our team for an exact estimate per salary and state.
Do employees get all their rights under an EOR?
Yes — employees hired through Europortage receive the complete set of CLT rights: registered contract, 13th salary, paid vacation with bonus, FGTS deposits, INSS coverage and severance protections.
Who pays and files taxes and social security?
Europortage does, as the legal employer: INSS, FGTS, IRRF withholding, eSocial and DCTFWeb filings, plus any CBA obligations — all included in your monthly invoice.