BRL
Currency
Brasília
Capital
215 million
Population
Portuguese
Official language
What is an employer of record ?
As an Employer of Record (EOR) in Brazil, we act as the legal employer for your employees living in the country, handling all employment responsibilities and liabilities on your behalf. We manage everything end-to-end, including payroll, benefits, taxes, and compliance. By partnering with Workmate, you can hire employees in Argentina without the complexities of setting up a local entity or navigating intricate labor regulations.
Guide to hiring in Brazil
Explore the topics below to discover everything you need to know about hiring employees in Brazil
Payroll & Wage
Minimum wage
As of 2024, the minimum wage in Brazil is set at R$ 1,412 per month, which is approximately $347 CAD based on current exchange rates.
Overtime
Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday. Some positions are exempt from overtime.
Social security
Monthly contributions:
The Fundo de Garantia do Tempo e Serviço (FGTS) - 8%
Social security - 28.8%
Meal allowance - R$ 40 per working day
Life insurance - R$ 5.56
Other contributions:
Service bonus - 1 month salary
Union bonus - R$ 315.52 per year
Vacation bonus - 1/3 of monthly salary
Conditional costs:
Abono Pecuniário - Employees can choose to receive up to 10 days of their vacation bonus paid out instead of using them as paid time off.
Childcare allowance - Female employees with children aged 0-60 months are entitled to a monthly childcare allowance up to R$ 290.98 per child.
Taxes
The individual income tax rate ranges from 0% to 27.5% and is calculated using a progressive system. Various factors can influence the final rate, including household status (renting or owning with a mortgage), the number of dependents under 18, marital status, and place of residence.
Leave entitlements
Vacation
Under Brazilian labor law, employees are entitled to 30 calendar days of paid time off (PTO) per year, provided they have completed one full year of employment and have not been unjustifiably absent. PTO accrues monthly at a rate of 2.5 days per month, but employees are not permitted to take leave during their first year of work. If an employee has unjustified absences, their annual leave entitlement will be reduced progressively based on the number of absences.
Parental leaves
Maternity leave:
In Brazil, pregnant employees receive 120 days of paid maternity leave, funded by the employer and reimbursed by Brazil’s Social Security system. Employers can extend this to 180 days and receive tax benefits from the federal government.
Paternatiy leave:
Fathers are entitled to five days of paid paternity leave, with the option to extend it by 15 days. The extended period is reimbursed through federal tax benefits.
Sick leave
Under Brazilian labor law, employees are entitled to 30 calendar days of paid time off (PTO) per year, provided they have completed one full year of employment and have not been unjustifiably absent. PTO accrues monthly at a rate of 2.5 days per month, but employees are not permitted to take leave during their first year of work. If an employee has unjustified absences, their annual leave entitlement will be reduced progressively based on the number of absences.
Holidays
Under Brazilian labor law, employees are entitled to 30 calendar days of paid time off (PTO) per year, provided they have completed one full year of employment and have not been unjustifiably absent. PTO accrues monthly at a rate of 2.5 days per month, but employees are not permitted to take leave during their first year of work. If an employee has unjustified absences, their annual leave entitlement will be reduced progressively based on the number of absences.
Terminations
Notice period
In Brazil, employers must provide notice of termination only when dismissing an employee without cause. The notice period is at least 30 days, with an additional 3 days per year of service, up to a maximum of 90 days. Employers can offer pay in lieu of notice.
For resignations, the notice period is 30 days. If termination is by mutual consent, the notice period is reduced by half.
Severance pay
In Brazil, severance pay is mandatory and varies by termination type. Employers contribute 8% of the employee’s monthly salary to a Severance Fund, which the employee receives upon termination. If dismissed without cause, the employer must pay an additional 40% of the fund’s total.
Other details
Employment agreements
Agreements or contracts must be in Portuguese or English, and can be bilingual. The following terms are required:
Probation period
Termination conditions
Ordinary or integral salary
Non-salary payments
Probation pediod
In Brazil, the maximum probation period is 90 days (3 months).