Capital
Brazilia Currency
Real (R$) (BRL) Languages
Portuguese Payroll Frequency
N/AGDP per Capita
R$7.348 trillion Employer Tax
7% to 27% Employer of Record in Brazil
The process of growing your company in Brazil is made easier by our EOR (Employer of Record) service. Without the requirement to establish a Brazilian subsidiary company, you can effortlessly grow your activities with the help of our solution. Your ability to assemble, compensate, and effectively manage a staff that is spread around the world is made possible by our platform’s automated and centralized HR system. Furthermore, our local professionals take care of taxation and regulatory needs so you may concentrate on your main company operations. To find out more about our EOR solution for Brazil, get in touch with us.
Overview of Brazil
- Population: 212.78 Million
- Currency: Real (R$) (BRL)
- Capital city: Brazilia
- Languages spoken: Portuguese
- GDP: R$7.348 trillion
Employment Landscape in Brazil
Before beginning hiring operations in Brazil, it is crucial to become familiar with the country’s employment system. The Brazil Employment Law, which protects the rights and interests of the workers, regulates employment agreements, benefits, and labour unions.
In accordance with the Federal Constitution of 1988, the Consolidação Das Leis Do Trabalho (CLT) is responsible for overseeing Brazil’s employment regulations. All Brazilian companies and employees are represented by the labour unions.
Fixed-term employment contracts are only permitted in some circumstances in Brazil, where employment contracts are normally for an indeterminate period of time. Either party may terminate the employment agreement without giving a reason, but only after giving enough notice and, if necessary, severance compensation.
Brazilian labour laws provide significant employee benefits, including maternity and paternity breaks, medical and dental coverage, lump-sum death payments, pensions, and retirement programs. The Brazilian Social Security System, Unified Health System, National Regulatory Agency for Private Health Insurance and Plans (ANS), and National Institute for Social Security (INSS) all handle supplemental benefits such as disability compensation and life insurance.
Brazil’s convoluted compensation requirements and labour regulations can be challenging to understand and time-consuming to navigate. It is recommended to enlist the aid of a regional payroll service provider who can direct you through the procedure and guarantee adherence to the rules and legislation.
| Entitlements | Explanation |
|---|---|
| Working Hours | 44 hours are spent working a full-time week. In Brazil, a day’s worth of labour is limited to eight hours. However, any employee who works more than six hours a day is required to take an hour off. |
| Overtime | Brazil only allows up to two hours of overtime each day. Overtime is defined as any additional hours worked over eight in Brazil.
Overtime pay for employees is equal to 150% of their base pay. Additionally, workers who report for duty on a holiday are entitled to 200% of their usual pay. A worker who works overtime from home, however, is not eligible for any benefits under this right. |
| Paid Public Holidays |
Regional holidays are as follows.
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| Sick Leaves | Employers give every employee on sick leave 100% of their wages for the first 15 days of their illness. However, the Social Security Administration begins paying employees on the sixteenth day. |
| Maternity Leaves | There are 120 days of paid maternity leave available to female employees in Brazil. They can even add another four weeks to the leave. The authorization is only granted, though, for compelling medical reasons. During this time, employees are paid in full, but employers are permitted to withdraw a certain amount for social security contributions. If their workplace is listed as an Empresea Cidada registered business, employees may additionally extend their maternity leave by 180 days. |
| Paternity Leave | Brazilian law grants fathers a five-day paternity leave. The employer is required to pay them in full. If their workplace is listed as an Empresea Cidada registered business, fathers may also extend their paternity vacation by 20 days. |
| Other Leaves |
|
| Lump-Sum Death Benefits | The employer begins disbursing lump-sum death payments to the dead employee’s dependents on the day of death. Please be aware that both retired and non-retired personnel are eligible for this benefit. This benefit is available to spouses, unmarried siblings, dependent minors, and children under the age of 21.
Amount – Up to 100% of the total retirement benefits that the employee received after retirement or would get upon retirement will be given to the qualified dependent. Everyone who survived receives the same amount. |
| Medical and Dental Care | Benefits for medical and dental care are guaranteed to every worker in Brazil. It is a contributing benefit that is overseen by the medical facilities of the National Institute of Social Security (INSS), the country’s social security system. The Brazilian National Regulatory Agency (NRA), on the other hand, controls dental and medical insurance.
The minimum and typical coverage required by all Brazilian health insurance providers is likewise determined by ANS. As a result, each insurance company’s total coverage amount is nearly identical. The network of hospitals, clinics, and physicians may be the cause of the modest discrepancy. |
| Retirement | The retirement pension will be determined as 60% of the employee’s average contribution earnings plus an additional 2% for each year that the person has paid more than 15 years’ worth of social security payments (for women) or 20 years’ worth of contributions (for men). |
| Pension | Employees in Brazil have access to three primary types of pension plans, each with a unique set of requirements and benefits. The first is the INSS-managed Survivors, Retirement, and Disability Pension program, which offers payments to those who have been hurt on the job or become disabled. The second kind is the Old Age Pension, which is offered to those who have reached a specific age and have made INSS contributions for a required amount of time. The minimum monthly contribution requirements for this sort of pension are 240 for men and 180 for women, with an upper age restriction of 65 for men and 62 for women. The Special Pension, which is intended for those who have worked in risky or dangerous situations and provides benefits customised to their unique requirements, is the last option. The optimal pension plan for you or your workers will depend on several factors, so it’s crucial to speak with a skilled financial counsellor or benefits expert. |
Contractors vs Full-Time Employees
Do you have any plans to sell in Brazil? If so, you must first appoint a remote team. The primary problem is determining whether to recruit full-time workers or contractors, even though there are many hiring businesses in Brazil that may assist you. Let’s examine the advantages and disadvantages of using full-time workers vs contractors.
Hiring Contractors
If a company has a brief project in Brazil, they should use independent freelancers. It is one of the most economical ways to achieve your business development objectives. Additionally, you won’t have to deal with the headache of managing payroll, statutory payments, taxes, or employee benefits. Whatever the circumstance, you must abide by Brazilian labour laws.
Hiring Full-Time Employees
It’s advisable to hire full-time workers if your plan calls for a long-term diversification effort in Brazil. Although at first it may seem expensive, it will aid in building a strong team for your business. You will have a trustworthy remote staff that will guarantee ongoing contributions to the company.
Join forces with us to obtain the best judgement on this issue. In addition to assisting you in choosing the best choice, our local specialists will build up a skilled remote team for you. You will be freed from all the pressure that comes with having employee duties and responsibilities.
Recruitment in Brazil
Brazil’s economy, which is currently the ninth largest in the world, is growing. Additionally, it has a strong industrial sector, which attracts companies wishing to grow internationally. Brazil has a sizable pool of skilled people who can assist in the expansion of any business because more than 50% of the population is under the age of 20.
Companies may post job opportunities on popular job sites in Brazil like indeed ,buscojobs, Catho ,vagas ,and trabalhabrasil to reach this talent pool. These employment sites can have their drawbacks, though, such as the possibility of fraudulent profiles, which can have a bad effect on the recruiting procedure.
It is important to work with a reputable recruiting and management company like us to reduce these difficulties. Our knowledgeable staff oversees remote teams from more than 150 nations, including Brazil. For businesses wishing to grow in Brazil, we handle the recruiting, onboarding, and work permits for foreign nationals, assuring a simple and hassle-free employment procedure. To discover more, get in contact with our professionals right away.
Probation & Termination
In Brazil, a probationary term typically lasts 45 days. With both the employee and the employer’s approval, it can be extended to 90 days.
Termination
Under Brazilian employment contract law, certain employees are exempt from the rule of termination of employment by giving notice. These employees include union representatives, pregnant employees, members of the Internal Committee for Accident Prevention (CIPA), employees with work-related injuries, and employees covered under collective bargaining agreements. It is important for employers to understand the specific regulations around dismissing employees in Brazil to ensure compliance with the law and avoid legal issues. Partnering with a local payroll provider can help companies navigate the complex labour laws and regulations in Brazil.
| Party Initiating Termination | Notice Period |
|---|---|
| Employer | The notice time for terminating an employee’s contract is determined by the length of their work, according to Brazilian employment contract law. A 30-day notice period is required for employees with up to a year of service, and a 30-day notice period plus three additional days for each additional year of service is required for employees with more than a year of service. The maximum further notice time is nonetheless capped at 60 days. It’s crucial to remember that both the employer and the employee are subject to these notification requirements. |
| Employee | Employees in Brazil often have to give a 30-day notice period when quitting their jobs. An employee may, however, be entitled to request an early release from their job if they are still in their probationary phase and do not need to give the entire 30-day notice period. It is essential to remember that the employer has the authority to refuse this sometimes. |
| Termination under mutual consent | The notice period is split in this case. |
EOR Solution
All of your fundamental hiring requirements may be met by Brazil EOR Solution. It greatly simplifies and expedites the difficult process of corporate diversification in Brazil. Our comprehensive dashboard and global automated HR platform may be customised to match your needs for HR solutions. Not only that, but our local experts will handle all of your HR needs, employment agreements, and Brazil work visa requirements.
Along with managing your timesheets in accordance with Brazilian legislation, we will also handle your probation, termination, work permits, and employee benefits. You will have plenty of time to improve your methods for business expansion and increase profitability. To learn more about our employer of record service, schedule a demo now.
Types of Visas in Brazil
Employees must get work visas and resident permits in order to legally work and live in Brazil. They must submit an application for this procedure to the Brazilian Consulate or Embassy in their country of residence. It’s vital to keep in mind the length of the visa application process—up to three months—and the cost of the visa—which varies by nation.
In spite of the fact that there are ten distinct types of visas available in Brazil, they may be divided into three main categories: tourist visas (VITUR), temporary visas (VITEM), which are valid for two years and can be renewed for an additional two years, and diplomatic, official, and permanent visas.
Work Permits
The work permit application procedure requires participation from both companies and employees. According to Brazilian employment legislation, your firm has to have a registered subsidiary there in order to obtain a work visa.
However, EOR solutions can help you sponsor work visas for Brazil without the need to set up a physical entity. For various work visa categories, our own specialists can expedite the paperwork gathering process and government approvals. To learn everything there is to know about obtaining a work visa in Brazil, contact the expert right away.
Payroll & taxes in Brazil
In Brazil, the payroll cycle can be either biweekly or monthly. The 15th and 30th of each month are when it is paid. Apart from this, Brazil also mandates the concept of the 13th salary. It means that employees will earn a 13th salary that is equal to 1 month’s compensation at the end of the year.
Payroll outsourcing should be used by businesses seeking for business prospects in Brazil. It will set them free from all the payroll and tax complications and formalities. Why don’t you get in touch with our professionals here for further information?
The procedure of setting up a subsidiary office in Brazil is very similar to the rest of the countries. However, you must be completely familiar with Brazilian laws and regulations.
The 5-step process of forming a holding company in Brazil might take anywhere between 60 and 90 days to complete. Please be aware that it does not include the time required to create a bank account.
Determine the kind of entity you wish to proceed with in
Step 1. Make sure the type you pick complements your intended business activity and development.
Step 2: File your articles of incorporation with the Board of Trade, including all pertinent business information.
Step 3: Register with the State Authority, the Municipal Authority, and the Federal Revenue Bureau.
Step 4: Create an account with the Brazilian Central Bank.
Step 5: Create a Brazilian bank account.
By working with a reputable record company employer in Brazil, you may avoid the dangers of making mistakes and receiving fines. Without the need to create a corporation, we can assist you in expanding your business activities in Brazil.
