Employer of Record (EOR) Services in Brazil

Expanding into Brazil presents exciting opportunities, but navigating local employment laws and compliance requirements can be complex. Our Employer of Record (EOR) and Professional Employer Organization (PEO) services in Brazil provide a seamless solution, allowing businesses to hire employees without the need to establish a legal entity. We manage all HR, payroll, tax, and compliance responsibilities, ensuring that your workforce operates smoothly while you focus on growing your business.

Setting up a legal entity in Brazil can be time-consuming and costly. Partnering with an EOR service allows companies to onboard employees efficiently and compliantly, without administrative burdens or legal risks. Our Brazil EOR solution ensures full compliance with Brazilian labor laws, offering a hassle-free approach to hiring in the country.

Brazil – Country Overview

Brazil is the largest economy in South America and a major player in global trade and investment. It has a diverse industrial base, a growing technology sector, and a well-developed infrastructure network. The country is known for its natural resources, agricultural exports, and thriving service industry.

Capital City: Brasília

Currency: Brazilian Real (BRL – R$)

Official Language: Portuguese

Government Type: Federal Presidential Republic

Major Cities: São Paulo, Rio de Janeiro, Belo Horizonte

Employment Contracts in Brazil

Employment contracts in Brazil must adhere to the Consolidation of Labor Laws (CLT). Contracts may be written or verbal, but a written contract is recommended to outline job responsibilities and terms clearly. Common contract types include:

Indefinite-Term Contracts: The most common employment arrangement, offering job security with standard notice periods.

Fixed-Term Contracts: Valid for up to two years, with an optional probationary period of up to 90 days.

Temporary Employment: Designed for short-term roles lasting up to 180 days, extendable by 90 days.

Probationary Period: Maximum of 90 days, allowing assessment before full employment confirmation.

Working Hours in Brazil

The standard workweek in Brazil is 44 hours, typically divided into 8-hour workdays. Employees are entitled to overtime compensation at a minimum of 50% above their standard hourly wage. Certain industries and job roles may have different regulations regarding working hours.

Holidays and Employee Leave in Brazil

Employees in Brazil benefit from a comprehensive leave policy, including:

Annual Leave: 30 days of paid vacation after one year of service.

Maternity Leave: 120 days, extendable by 60 days in certain cases.

Paternity Leave: 5 days, extendable under some corporate policies.

Sick Leave: Covered by the employer for the first 15 days, after which social security takes over payments.

Public Holidays: Brazil observes multiple national and regional holidays, including New Year’s Day, Carnival, Independence Day, and Christmas.

Employee Termination in Brazil

Employment relationships in Brazil require adherence to strict termination procedures. Notice periods depend on the length of service:

Up to 1 year: 30 days’ notice required.

More than 1 year: An additional 3 days per year of service, up to a maximum of 90 days.

Severance Pay: Employees may be entitled to severance payments from the employer and the FGTS (Severance Indemnity Fund).

Global Mobility in Brazil

Brazil offers various visa categories for foreign professionals, including:

Work Visas: Required for foreign employees working for a legally registered company in Brazil.

Temporary Business Visas: For short-term work assignments, valid for up to 90 days.

Permanent Residency: Available for highly skilled professionals under specific conditions.

Employee Benefits in Brazil

Brazilian employees are entitled to several mandatory benefits, including:

Social Security Contributions: Covers pensions, disability, and unemployment benefits.

13th Month Salary: A legally mandated annual bonus equivalent to one month’s salary.

Health Insurance: While public healthcare is available, many employers offer private health plans.

Transportation and Meal Vouchers: Common benefits provided to employees.

Working Hours in Brazil

Standard workweek: 44 hours (typically 8 hours/day, 5.5 days/week).

Overtime: Paid at a minimum of 150% of the standard rate.

Employees are entitled to rest breaks and paid public holidays.

Payroll & Taxation in Brazil

Income Tax: Progressive rates from 0% to 27.5%.

Employer Contributions: Around 30-40% of an employee’s salary for social security, pension, and other statutory benefits.

13th Month Salary: Mandatory extra salary paid in two installments (November & December).

Employee Benefits in Brazil

Mandatory Health Insurance: Employers must provide healthcare benefits.

Meal & Transport Allowances: Common benefits required by CBAs.

Severance Pay (FGTS): Employers must contribute 8% of salary to the FGTS severance fund.

Why Choose EOR Services in Brazil?

Using an Employer of Record service in Brazil enables companies to hire and operate compliantly without the need for a local entity. Our EOR solutions handle employment contracts, payroll, taxes, and compliance, providing:

Fast Market Entry: Hire employees within days without entity setup.

Full Compliance: Ensure adherence to Brazilian labor laws and tax regulations.

Reduced Risk: Minimize legal and financial exposure.

Operational Efficiency: Focus on business growth while we manage HR and payroll functions.

Our Brazil EOR services provide a straightforward, compliant, and cost-effective way to establish a presence in Brazil while avoiding the complexities of local labor laws. Partner with us to streamline your global expansion strategy and build a successful workforce in Brazil.