Hire in Brazil — without a Brazilian entity
At Horizons, we offer an extensive set of global employment solutions to help companies hire employees in Brazil quickly and effectively. Our Brazil PEO and employer of record (EOR) solutions mean you outsource all the complex administration, payroll and tax compliance to us, leaving you to focus on expanding your core business.
Our Brazil PEO simplifies your expansion
Horizons enables your business to expand its operations into Brazil, without needing to setting up a legal subsidiary.
Employment & Labour Laws in Brazil
📝 Brazil employment contracts
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.
⏰ Working hours in Brazil
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.
📅 Public holidays in Brazil
There are several nationally recognized holidays in Brazil, as well as further unofficial holidays, such as Good Friday. These are observed in some but not all areas, so always be sure to understand the local customs in your area of operation.
The main days celebrated at national and regional levels are:
New Year’s Day
State Rebellion Day
Lady of Aparecida
Civil Servants Day
All Souls’ Day
Black Awareness Day
🌟 Employment benefits in Brazil
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:
🏖 Vacation in Brazil
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.
😷 Sick leave in Brazil
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.
👶 Maternity and paternity leave in Brazil
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.
💰 Employee severance and terminations in Brazil
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.
🏦 Taxation in Brazil
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.
🏥 Health insurance in Brazil
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.
💳 Brazil compensations & benefits
Compensation Laws in Brazil
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.
Employers in Brazil also often pay a 13th-month salary, where workers receive an extra one month of salary in two parts across November and December.
Benefit management in Brazil
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.