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SALARY PAYMENT IN Brazilian real (BRL, R$)
CONTRACT LANGUAGES Portuguese / English
PAYROLL TAX 28% – 30.5%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
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Hire and pay talents
with Horizons in
180+ countries
Brazil
Horizons provides compliance solutions to ensure your business in Brazil operates in line with Brazilian labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Brazil in a range of industries, from customer service, to accounting services, to software development.
We also process monthly payroll, and, as a Brazil Employer of Record, absorb all local employer liabilities. Partnering with our Brazil PEO is the quickest and most cost-effective way to enter the Brazilian market.
| PEO Platform Hire in Brazil, and pay employees through our platform or app. | PEO Cost Our Brazil PEO solution is the most affordable on the market. | Time-to-hire Fast onboarding in Brazil, hire in as little as 24 hours. |
| Contracts We draft labor contracts compliant with Brazil labor law. | Local Benefits We administer all mandatory benefits and contributions in Brazil, including FGTS. | 180+ Countries It doesn’t stop with Brazil — we are an international PEO |
When hiring in Brazil, it is possible to use both spoken and written arrangements, but we would always recommend producing a formal written contract of employment. The contract should be in Portuguese, the official language of Brazil, and include all details of your agreement such as salary/wage (in BRL currency), entitlements, and benefits.
By partnering with our Brazil PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.
| Probationary period | 12 months maximum |
| Termination notice period | 30 days |
| Severance | Only applicable after 12 months’ service: 1 month’s salary per year of service If for a business reason: 2 months’ salary per year of service |
| Important notes | Maximum 2 years’ contract Maximum 1 time renewal Limited contract must be justified to be accepted by the labor bureau |
| Probationary period | 12 months maximum |
| Termination notice period | 30 days |
| Severance | Only applicable after 12 months’ service: 1 month’s salary per year of service If for a business reason: 2 months’ salary per year of service |
The legal working week for employees in Brazil is 44 hours. Often, this is composed of a four-hour day on Saturday in addition to the standard eight hours from Monday to Friday, but hours can be arranged differently across the week.
Quick, compliant hiring in 24 hours—no subsidiary required.
The legal working week for employees in Brazil is 44 hours. Often, this is composed of a four-hour day on Saturday in addition to the standard eight hours from Monday to Friday, but hours can be arranged differently across the week.
| Date | Holiday name |
|---|---|
| 1 Jan Sunday | New Year’s Day |
| 20 Feb Monday | Carnival Monday |
| 21 Feb Tuesday | Carnival Tuesday |
| 22 Feb Wednesday | Carnival end (until 2pm) |
| 7 Apr Friday | Good Friday |
| 21 Apr Friday | Tiradentes Day |
| 1 May Monday | Labor Day / May Day |
| 8 Jun Thursday | Corpus Christi |
| 7 Sep Thursday | Independence Day |
| 12 Oct Thursday | Our Lady of Aparecida / Children’s Day |
| 28 Oct Saturday | Public Service Holiday |
| 2 Nov Thursday | All Souls’ Day |
| 15 Nov Wednesday | Republic Proclamation Day |
| 24 Dec Sunday | Christmas Eve (from 2pm) |
| 25 Dec Monday | Christmas Day |
| 31 Dec Sunday | New Year’s Eve (from 2pm) |
It’s always important that you understand what kinds of benefits your employees in Brazil are legally entitled to or will expect to receive. Our Brazil Employer of Record & PEO provide support for managing the following areas:
Employees in Brazil can take 30 days of vacation leave per year after completing one year of employment. They are also entitled to a holiday bonus payment of one-third of normal monthly pay.
Employees in Brazil are entitled to up to normal pay from their employer for the first 15 days of sickness (upon provision of a doctor’s note). They can then receive payments from a social program called INSS.
Mothers in Brazil are legally entitled to four months of maternity leave, and cannot be fired throughout pregnancy or within one year of their child’s birth date, with full salary and benefits being paid throughout. Under some circumstances, employers can extend the four-month period by 60 days and write the payment off as a tax deduction.
Fathers can take up to five days of paid leave.
Terminations of employment must be notified in writing by either the employer or employee, 30 days in advance, or with an equivalent payment. Employees are entitled to a further three days of notice after one year of service, and three more per year of service up to a maximum of 60 days (90 days total).
Severance payments must include a 13th-month salary, unused vacation payments, and any other relevant benefits, all calculated pro rata. When employees are terminated by an employer they also receive a payment from a national unemployment fund (FGTS). Employers fund this with 8% of salary and employees receive the fund upon termination. If the termination is without proper cause, the employer must pay a further 40% of the total fund to the employee, and 10% to the government.
Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Brazil PEO can mitigate risk for foreign companies and provide guidance through this process.
Employers can expect to pay roughly 80% in addition to each employee’s salary in added contributions.
The corporate tax rate in Brazil is 15%, but there is also a 10% surcharge on annual taxable income above 240,000 BRL.
In Brazil, health insurance is offered by the government, so employees are covered for most medical care as standard. However, many companies do choose to offer private insurance a part of their employment benefits package.
In some cases, the employee is, in fact, entitled to private health insurance. This will depend on the collective bargaining agreement (union) of the hiring company’s industry.
Employees in Brazil are entitled to a ‘transport voucher’ to be used for transportation to and from the office, valued at 6% of an employee’s salary. This is a mandatory allowance.
Some employees are also entitled to a ‘meal voucher’ to be used for food. If an employee is entitled to a meal voucher, and at what value, is usually determined the collective agreement (union) of the industry your employee is working in. Each case will be different.
The minimum wage in Brazil is 937 BRL per month (approximately 165 USD). Details of compensation should always be included clearly in your employment contracts. As an employer in Brazil, you may also be pressured by trade unions to increase salaries periodically.
It is mandatory for employers in Brazil to pay a 13th-month salary, where workers receive an extra one month of salary in two parts across November and December.
Setting up your Brazilian benefits system as a foreign employer can be difficult. The laws are complicated, there is a potential language barrier in all negotiations, and legislation can change regularly. These factors can make it a very time-consuming process.
A great solution is to outsource your Brazil benefits management to Horizons’ Brazil PEO. We’ll help you get everything organized, compliant, and running as quickly as possible, so you can focus on your expansion efforts.
With Horizons, you get quick service, transparent pricing, and expert support.
A Brazil PEO and a Brazil EOR are two types of companies which specialize in providing human resources services to businesses in Brazil.
The main difference between a Brazil PEO and a Brazil EOR is in the scope of their services.
Brazil PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Brazil PEO is essentially outsourcing your HR duties in Brazil.
Brazil EORs actually take over as the legal employer of your employees based abroad. Brazil EORs become responsible for labor compliance for your employees in Brazil.
At Horizons, we offer both PEO and EOR services in Brazil. Get in touch now and let us know what service you are seeking.
A PEO in Brazil can feasibly hire both local and foreign nationals to work in Brazil.
However, the ability of Horizons to sponsor your foreign national employee in Brazil may be limited due to visa quotas practiced in many countries.
Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.
In most cases, Horizons’ Brazil PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Brazil.
It is possible to get a work visa in Brazil. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Brazil are limited, however—get started today to secure your employees’ visa spot.
Headquarters
71 Robinson Road #13-153
Singapore 068895
+65 3158 1382
Europe
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
Americas
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
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Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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