Everything you need to know about hiring employees in Brazil through an Employer of Record
An Employer of Record (EOR) in Brazil is a third-party organization that becomes the legal employer of your workforce in Brazil, allowing you to hire employees without establishing your own legal entity in the country.
When you partner with an EOR like Europortage, we handle all employment-related responsibilities including contracts, payroll, taxes, benefits, and compliance with Brazilian labor laws (CLT - Consolidação das Leis do Trabalho). Your company maintains full operational control over day-to-day work and management of your team.
This arrangement is particularly valuable in Brazil, where labor laws are complex and constantly evolving. The EOR assumes all legal risks and ensures your operations remain 100% compliant with Brazilian regulations, including mandatory benefits, tax withholdings, and termination procedures.
Brazil's labor framework is governed by the CLT (Consolidação das Leis do Trabalho), one of the most comprehensive and employee-protective labor codes in the world. An EOR navigates this complex system on your behalf.
Under CLT regulations, the EOR ensures full compliance with all mandatory requirements while you maintain complete control over your employees' daily work, performance management, and business objectives.
An Employer of Record is the ideal solution for various business scenarios
You want to hire in Brazil without establishing a legal entity
You need to onboard employees quickly (within 48 hours)
You want to ensure 100% compliance with Brazilian labor laws
You're exploring the Brazilian market before full commitment
Essential facts for hiring in Brazil
GMT-3
Portuguese
44 hours (CLT)
Growing
Europortage’s Brazil EOR service handles all the complexity of CLT compliance, so you can focus on growing your business.
Understanding the total cost of employment in Brazil is crucial for budgeting. Here’s a transparent breakdown of what to expect.
Expect total employment costs to be approximately 40-45% on top of base salary
Transparent monthly fee starting from USD 400/employee
Avoid USD 50,000+ in entity setup costs
These costs are estimates and can vary based on industry, location, and specific employee arrangements. Contact us for a detailed cost calculation tailored to your hiring needs.
Navigate Brazil’s comprehensive labor laws with confidence. Here are the essential employment regulations you need to know.
Partner with an employer of record (EOR) is quite a game changer and can help you hire globally. The EOR will be the legal employer, which means they will handle employment contracts, onboarding process, compliance, benefits, payroll and more.
The minimum wage in Brazil is adjusted annually in January. As of January 1st, 2026, the minimum wage is BRL 1.621,00 per month.
The daily rate will be R$50.60 and the hourly rate will be R$6.42.
Five states have their own minimum wage; each one must be higher than the federal minimum wage listed above.
To understand the details of the minimum wage in Brazil, check out our complete guide 🔗here. Learn more about how to hire in Brazil with the latest insights!
Employees in Brazil typically receive monthly payments. However, bi-weekly payments are also common depending on the company or CBA.
Brazilian labor law mandates a 13th-month salary for all employees. This extra payment equals one-twelfth of the monthly salary for each month worked in a calendar year. Employers must pay it in two installments—the first by November 30 and the second by December 20.
In addition to the 13th-month salary, Brazilian employees also receive a vacation bonus. This bonus equals one-third of their monthly salary and applies when employees take their annual leave.
If paid once a month, employees are usually paid on the last working day of the month. If paid twice a month, employees are usually paid on the 15th and 30th of the month.
Salary payment must be done on a local bank account.
Brazil’s payroll system requires both employers and employees to make mandatory contributions to fund social security, severance, and other benefits.
Employers in Brazil must comply with several mandatory contributions to ensure employee benefits and social security. Below is a summary of key employer obligations:
INSS, or Instituto Nacional do Seguro Social, is a crucial component of employment laws in Brazil. This social security agency, part of the Ministry of Social Security, plays a significant role in the country’s social welfare system.
Employers in Brazil are required to contribute to the INSS on behalf of their employees. Typically, the employer’s contribution is either 20% or 22.5% of the employee’s gross monthly salary, and notably, there is no cap on this contribution.
For more detailed insights on social security tax and INSS contributions, visit our guide on 🔗 Social Security Tax in Brazil.
The Fundo de Garantia do Tempo de Serviço (FGTS) is a fundamental aspect of employment laws in Brazil. This fund, created by employers for each employee, serves as a financial safety net covering severance indemnity.
Employers are required to deposit an amount equivalent to 8% of the employee’s gross monthly salary into the FGTS account.
Over time, these monthly deposits accumulate, forming the FGTS fund, which belongs entirely to the employee. In certain situations, such as dismissal without cause, retirement, or purchasing a home, employees can access the total amount in their FGTS account.
For more in-depth information on FGTS and its implications, visit our guide on 🔗What is the FGTS Fund in Brazil?.
The Risco Ambiental do Trabalho (RAT) is a social security contribution. Basically, the RAT tax is the working accident contribution the company needs to pay to cover work-related injuries.
The rate applied for the coverage of this insurance can be:
This tax is another contribution to governmental institutions related to employee’s fund for training. This tax includes the following taxes : SENAI, SESC, SESI, etc.
The contribution stands usually at 5,80% of the gross monthly salary.
Residents in Brazil are required to pay taxes on their worldwide income on a monthly basis.
If you’re looking to hire in Brazil, our employer of record Brazil service ensures that all tax obligations, such as social security and income tax, are efficiently managed in compliance with employment laws in Brazil.
The first calculation corresponds to the amount that goes to Social Security. From the gross salary, the deduction is made according to the following table:
| MONTHLY SALARY | RATE |
| Until R$ 1.412,00 | 7,5% |
| From R$1.412,01 to R$2.666,68 | 9,0% |
| Between R$2.666,69 and R$4.000,03 | 12,0% |
| From R$4.000,04 to R$7.786,02 | 14,0% |
*updated 24/01/2024
The Income Tax is an annual tax levied on the individuals and companies’ incomes by the Federal Government. The government requires workers and businesses to report their annual income to the Receita Federal.The taxpayer must report worldwide income (where applicable) and deductible expenses for the previous year.
The period is usually from the beginning of March to the end of April.
The amount deducted from the employee’s salary depends on his monthly income according to the following table:
| CALCULATION BASIS | RATE |
| Until R$ 2.259,20 | 0,0% |
| From R$ 2.259,21 to R$ 2.828,65 | 7,5% |
| Between R$ 2.826,66 and R$ 3.751,05 | 15,0% |
| From R$ 3.751,06 to R$ 4.664,68 | 22,0% |
| Above R$ 4.664,68 | 27,5% |
* updated 01/2024
The standard workweek is 44 hours. Each workday lasts 8 hours Monday through Friday and 4 hours on Saturdays. However, employer-employee contracts and collective bargaining agreements usually set the workday hours at 9 hours per day and two full days off.
Learn more about 🔗 Working hours in Brazil.
Overtime in Brazil is strictly regulated, requiring businesses to comply with labor laws. The standard workweek is 44 hours, with a 10-hour daily limit including overtime. Overtime pay is typically double the base salary, while Sundays and holidays receive 100% extra compensation, and night shifts earn a 20% premium. If overtime exceeds 9 hours per week, the rate triples. Failure to comply can result in penalties, making accurate tracking and proper payment essential. Learn more about 🔗 Overtime in Brazil
Employment laws in Brazil mandate strict time tracking obligations for businesses with more than 20 employees.
Employers must accurately record working hours, including breaks, to ensure compliance with local labor laws. This requirement is crucial when you hire employees in Brazil because it helps prevent disputes related to overtime and ensures that employees receive fair compensation.
However, certain roles, such as external employees, remote workers, and those in positions of trust, are exempt from these tracking requirements.
When you hire in Brazil, employers must provide certain statutory benefits to employees, ensuring compliance with local labor laws. These benefits include the 13th-month salary, paid vacation with a bonus, and transportation vouchers.
The 13th-month salary (Décimo Terceiro) is mandatory in Brazil. It is paid in two installments:
the first installment by November 30,
the second installment by December 20.
The total amount corresponds to one full monthly salary, with proportional rules for employees who have worked less than 12 months.
Learn more about the 🔗13th month salary in Brazil.
Employees earn 30 days of paid vacation after 12 months of service. When vacation is taken, the employer must pay the regular monthly salary plus a vacation bonus equal to one-third of the salary, paid in advance before the leave starts.
All CLT employees who use public transport for commuting are entitled to Vale-Transporte. The employer covers the commuting cost and may deduct up to 6% of the employee’s base salary as co-participation.
For remote employees, VT isn’t due; however, if the employee goes to the office on specific days, VT must be provided proportionally for those days.
Employee benefits and conditions are legal rights in Brazil. Employers must comply with these, but they can also offer additional benefits to attract and retain talent. Depending on the company’s CBA, some non-mandatory benefits might become mandatory.
Called “vale refeição” in Portuguese, they are really common benefits in Brazil and a mandatory benefit under Europortage’s CBA. In general, the benefit is offered as a card with a cash value that can be used in the company’s canteen or in partner restaurants.
The value of the meal vouchers depends on the CBA and the city the employee leaves. The unused amount accumulates on the card.
Called “vale alimentação” in Portuguese, this benefit is quite common in Brazil. It allows the employee to buy food in grocery stores and supermarket.
Food vouchers are usually granted alongside meal vouchers.
Medical assistance is one of the benefits most valued by professionals. Many companies offer different health plans according to the professional’s position. Other companies offer both health and dental plans together. And some companies extend the benefit to the employees’ families.
Less common than private health insurance, private pension is often a benefit provided by larger companies in Brazil.
Employees contribute out of their salary at the same rate as the company.
Life insurance is a common benefit in Brazil, especially at larger companies. They are tied to the employee’s position, salary and age.
Learn more about 🔗 Benefits in Brazil.
Paid time off (PTO) in Brazil follows strict labor laws to protect employees’ rights. Workers earn 30 days of paid vacation after completing 12 months of service with the same employer. Employers must schedule vacations within the following 12 months, ensuring compliance with Brazilian labor laws. Employees can split their PTO into up to three periods, but one must last at least 14 consecutive days.
If unjustifiably absent, employees will progressively lose days of leave, as follows:
Additionally, Brazil requires a vacation bonus equal to one-third of the employee’s monthly salary, paid before the start of the leave. Employers must carefully track time off and payments to avoid penalties or non-compliance issues. Partnering with a Brazil employer of record (EOR) helps businesses manage PTO regulations, payroll, and benefits seamlessly while staying compliant with local laws.
Check our complete article: 🔗 Leave in Brazil.
Brazil has 8 national holidays, and about 50 state holidays. First thing to remember is that state holidays differ from a state to another.
When you hire in Brazil, remember that your remote workers are going to have different public holidays in they do not work in the same state.
*Carnaval, Good Friday, and Corpus Christi are optional holidays (Ponto facultativos). Carnaval is a mandatory holiday in Rio de Janeiro, and Corpus Christi is a mandatory holiday in São Paulo.
Employees in Brazil are entitled to maximum compensation from their employer for the first 15 days of illness (upon presentation of a medical note). Thereafter, they may receive payments from a social program called INSS.
Parental leave in Brazil is a critical aspect of employment laws in Brazil, particularly for businesses planning to hire in Brazil. Mothers are legally entitled to four months of maternity leave, during which they receive their full salary and benefits. Importantly, they cannot be terminated during their pregnancy or within one year of their child’s birth. This protection ensures job security and financial stability during this crucial period. Under specific circumstances, employers may extend the maternity leave by an additional 60 days and write off the payment as a tax deduction.
Fathers in Brazil are also entitled to parental leave, though their leave is shorter. They may take up to five days of paid leave following the birth of their child.
For more detailed information, you can visit our comprehensive guide on 🔗 Parental leave in Brazil.
In Brazil, employers are not required by law to provide written employment contracts, but having one is strongly recommended to ensure clarity and compliance.
However, all employees must be registered in the Carteira de Trabalho e Previdência Social (CTPS), also known as the work card. This document records salary, job role, and hire date, serving as legal proof of employment. Employers must complete this registration within 48 hours of hiring to comply with labor laws.
Additionally, Brazilian labor laws require pre-employment and periodic medical exams. These exams confirm that employees are physically and mentally fit for their roles.
To stay compliant when hiring in Brazil, companies should:
Termination in Brazil demands strict compliance.
The process starts with identifying the legal reason for termination. Employers must document the cause clearly and communicate it to the employee in a transparent way.
Additionally, companies must calculate and pay all mandatory items on the final payroll. Employers must also ensure social security contributions are paid up to the last day worked. The settlement must be delivered immediately to avoid sanctions.
Because mistakes often trigger investigations, businesses must handle terminations with pr
The minimum required notice period is set at 30 days by the CLT (Brazilian labor law). Some CBA and employment agreement may include longer notice period, capped at 90 days.
An additional 3 days’ notice is added to the 30 days for every year of employment, also capped at 90 days. In Brazil, the employers can choose to pay the notice in lieu.
Termination with cause does not require a notice and termination by mutual agreement allows the notice to be cut in half.
Employees who work through their notice period are entitled to a work schedule shortened by two hours daily or seven days in total while receiving their full remuneration to look for work. The employee must have been employed for at least 12 months to be entitled to this rig
The employer pays the FGTS fine in case of termination without cause or indirect termination (employer’s just cause). The fine is equivalent to 40% of the FGTS fund. It is calculated considering all the deposits of the FGTS fund that were made during the employment relationship.
In case of termination by mutual agreement, which is when the parties decide together to terminate the contract, this amount will be 20%.
Check our complete guide on end of employment in Brazil.
This Employment Guide is provided for context only. When hiring through Europortage's Employer of Record (EOR) service, all payroll, tax, INSS/FGTS contributions, contract drafting and CLT compliance are handled directly by our team.
All employment governed by Consolidação das Leis do Trabalho (CLT)
Digital platform for all employment and tax reporting to government
Specialized justice system handles all employment disputes
Understanding your options is crucial for success in Brazil. Compare the three main approaches to hiring Brazilian talent and discover which solution fits your business needs.
48-72 hours
Very Low
$400/month per employee
✔ Testing the Brazilian market
✔ Hiring 1-50 employees quickly
✔ Need immediate compliance
✔ No long-term commitment yet
✔ Remote teams across Brazil
3-6 months
Medium
$15,000-$50,000 setup + ongoing costs
✔ Long-term commitment to Brazil
✔ Large team (>50 employees)
✔ Physical office needed
✔ Significant local operations
✔ Strategic market presence
1-2 weeks
Very High
$0 setup (contractor rates vary)
✔ Short-term projects only
✔ Specialized consulting work
✔ True independence required
✔ Limited engagement scope
✔ Accepts classification risks
Brazilian labor law is extremely protective of workers. Misclassifying employees as independent contractors can result in severe penalties, back payments, and legal disputes. Courts often reclassify contractors as employees if there's evidence of:
❌ Regular working hours or schedules
❌ Direct supervision or management control
❌ Exclusivity or non-compete requirements
❌ Using company equipment or working from company premises
Stay informed with the latest updates, guides, and insights about hiring and managing employees in Brazil
Brazil’s job market in 2025 is evolving with advancements in technology, finance, agribusiness, and HR. High-demand skills include AI, data analysis, and remote leadership. Salaries are rising in strategic roles, and industries like fintech and sustainability are booming. Stay ahead by understanding trends and preparing for the future workforce.
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Expanding into Brazil requires a partner who understands both local complexities and international business needs. Europortage combines deep local expertise with global standards to deliver exceptional employer of record services. Our Brazil EOR solution is built on years of experience helping companies successfully enter and scale in the Brazilian market. We handle the complexity so you can focus on what matters most—growing your business and managing your team.
Deep knowledge of Brazilian employment law and business culture
Hire employees in as little as 48 hours
15+ years of experience in international employment
Bilingual support team (Portuguese / English) available during business hours
No hidden fees or surprise charges
Full CLT adherence with continuous legal monitoring and updates
Get answers to common questions about hiring in Brazil with an Employer of Record
1. Hire and pay from HQ: The worker lives in Brazil but is paid directly by the foreign parent company.
👉 Cons: This is not compliant under Brazilian law.
Brazil requires CLT registration, INSS contributions, FGTS deposits, and eSocial filings. Paying from HQ exposes the company and the worker to tax violations, fines, and immigration issues.
2. Engage independent contractors (freelancers): The worker operates as a self-employed “PJ” or “RPA” or provides services as an independent contractor.
👉 Cons: Brazil has strict criteria for contractor status.
If the worker has fixed hours, subordination, exclusivity, or continuous service, courts typically reclassify them as employees — triggering retroactive FGTS, INSS, 13th salary, férias, plus penalties.
3. Create a local entity (CNPJ): You open a Brazilian subsidiary, register with the Federal Revenue Service, enroll in eSocial, and run full CLT payroll internally.
👉 Cons: Slow and complex.
You need a tax resident legal representative, accounting support, local bank accounts, municipal licenses, and ongoing CLT compliance. Setup often takes 6–10 weeks, sometimes longer with banks.
4. Partner with an Employer of Record (EOR) in Brazil: An EOR like Europortage becomes the legal employer under the CLT. We manage payroll, tax filings, FGTS/INSS payments, benefits, contracts, and HR compliance.
👉 Cons: Slightly higher monthly cost than internal payroll — but full CLT compliance, faster hiring, and no need for a local entity make it the most efficient option for foreign companies.
Opening a company in Brazil usually takes 6 to 10 weeks, depending on:
Shareholder nationality
Document legalization and apostilles
Municipal licenses
Federal tax registrations
Bank account opening (which may take additional time)
During this period, you cannot legally employ workers under the CLT.
An EOR provides a compliant shortcut that allows you to begin operations immediately while the entity is being created—or even instead of creating one.
You can hire independent contractors, but misclassification is heavily penalized in Brazil.
A contractor must meet all conditions of autonomy:
No exclusivity
No fixed working hours
No subordination
Clear service agreement
No integration into your internal hierarchy
If the contractor relationship resembles an employment relationship under the CLT, Brazilian courts typically reclassify it as full employment — retroactively applying FGTS, INSS, paid holidays, 13th salary, plus fines.
An EOR eliminates this risk by enabling fully compliant employee hiring.
HR compliance in Brazil means following all requirements of the CLT (Consolidation of Labor Laws) and related regulations, including:
Mandatory employment contract terms
FGTS and INSS contributions
Accurate monthly payroll and eSocial filings
Paid vacation (férias) rules
13th salary payments
Overtime regulations
Compliance with the applicable CCT (Collective Bargaining Agreement)
Health and safety obligations
Correct severance calculations (including FGTS penalty)
Europortage manages the entire compliance process as the legal employer in Brazil.
Employer costs in Brazil typically add 32% to 40% on top of the employee’s gross salary.
Mandatory components include:
Employer INSS (20% standard)
FGTS (8%)
Terceiros (5,80%)
Work Accident Insurance (1%–3%)
Vacation bonus (+1/3 of salary)
13th salary
CCT-required benefits (health plan, meal allowance, etc.)
Europortage provides detailed cost simulations before hiring.
An Employer of Record (EOR) in Brazil is the officially registered empregador local responsible for:
Hiring and onboarding employees under the CLT
Running payroll, taxes, FGTS, and INSS
Managing benefits, holidays, overtime, and leaves
Ensuring compliance with the CCT
Filing all obligations through the eSocial system
Managing terminations and severance payments
Your company directs the employee’s day-to-day activities, while Europortage ensures full legal and payroll compliance.
Europortage, as the EOR, handles all statutory obligations, including:
INSS contributions (employee + employer portions)
FGTS deposits
IRRF (income tax withholding)
eSocial monthly filings
DCTFWeb submissions
CCT-related obligations
We ensure accurate calculations and on-time submissions to prevent fines and penalties.
Europortage ensures compliance through:
Strict adherence to the CLT
Automated and audited eSocial payroll submissions
Monitoring updates to INSS/FGTS regulations
Applying the correct CCT for each role and location
Local HR experts available in Portuguese and English
Regular reviews of tax, payroll, and labor law changes
We also provide Legal & Compliance Alerts to keep clients informed of regulatory updates.
Your legal responsibilities are limited to:
Managing the employee’s daily work and performance
Maintaining respectful, safe working conditions (even for remote workers)
Providing accurate information regarding working hours, bonuses, or commissions
Funding payroll and benefits on time
Europortage assumes all employer-of-record obligations, including compliance, payroll accuracy, contracts, benefits management, and statutory filings.
Yes — employees hired through Europortage receive full CLT rights, including:
Registered employment contract
FGTS deposits
INSS coverage
Paid vacation (férias)
13th salary
Meal/transport/health benefits (as per CCT)
Overtime protections
Paid leaves and statutory entitlements
Correct severance in case of termination
EOR employment is fully compliant with Brazilian labor law and offers the same protections as any CLT contract.
Our Brazil EOR specialists are here to help. Schedule a free consultation to discuss your specific needs.
Join hundreds of companies that trust Europortage to handle their Brazil employment needs. Start hiring in Brazil today without the complexity of setting up a local entity.
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