Employee Leasing in Brazil
Brazil is a country teeming with diverse opportunities. Whether you want to benefit from its skilled workforce and low labor costs or you want to prepare for a future business expansion in the country, employee leasing has game-changing potential for you to hit the ground running in the Brazilian market.
Employee leasing simplifies the complexities of Brazilian labor laws, reducing risks and providing companies with the flexibility to tailor their workforce efficiently. With FMC Group, you gain access to a specialized team that ensures compliance and eliminates the daunting prospect of labor-related disputes, enabling you to concentrate on your core business activities.
FMC Group offers custom candidate selection, precise payroll services, and comprehensive expense management. This allows businesses to streamline their operations and focus on growth.
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Advantages of Employee Leasing in Brazil
- Employee leasing services allow companies to easily navigate the legal landscape of Brazilian labor laws and remove the risk of labor-related disputes and penalties.
- Employee leasing helps businesses to flexibly control labor costs and quickly adapt their local workforce according to their own needs and budget.
- Employee leasing in Brazil gives companies direct access to a diverse pool of skilled professionals who are very familiar with the local business world.
- By outsourcing HR-related tasks through employee leasing, businesses can focus more on their core business activities, strategic goals, and growth strategies, allowing them to be more competitive in the Brazilian market.
Employee Leasing Services Offered by FMC Group
- We customize candidate selection to meet our client’s specific needs and criteria.
- After client approval, we source and secure the best candidates.
- Our payroll services adhere to international standards, ensuring accuracy and compliance.
- We handle the payment of social contributions and taxes in strict accordance with Brazilian labor laws.
- We efficiently manage all other expenses and allowances on behalf of our clients.
- We track paid leaves and employee vacations in alignment with employment contracts.
- If requested, we negotiate and implement private insurance options for employees.
- We maintain open lines of communication with our clients, ensuring ongoing collaboration and management of their workforce.
Management and Reporting Flow of Employee Leasing Services
Advantages of the Brazilian Market
- Brazil has a vast and diverse consumer market with over 214 million people. This population size presents significant opportunities for companies looking to tap into various industries, including technology.
- Brazil has experienced significant growth in its middle-class population, which is currently estimated to represent almost half of the country’s total population. This expanding middle class represents a growing consumer base with increasing purchasing power, creating many opportunities for businesses.
- Brazil’s geographical location in South America makes it a strategic gateway to other Latin American markets. Companies investing in Brazil can use it as a hub for expanding into neighboring countries, taking advantage of regional trade agreements, notably the Southern Common Market (Mercosur).
- Brazil has been experiencing an increasing demand for IT services, including software development, cybersecurity, and cloud computing. The rapid digital transformation of businesses in Brazil has encouraged Brazilian youth to invest their time into improving their various IT skills. The number of IT professionals in Brazil is estimated to be more than 1.6 million.
Hiring in Brazil
Minimum Wage and Payroll
- The minimum wage in Brazil is set at BRL 1,320 (EUR 241.8) per month.
- The payroll cycle in Brazil can either be bi-weekly or monthly, with salaries typically paid on the 15th and 30th days of the month for bi-weekly payroll cycles and on the 30thfor monthly cycles.
- The 13th-month salary bonus is mandatory in Brazil. It has to be paid in two halves, one in November and one in December.
Social Contributions and Taxes
Employer Contributions Social Security 20.00% – 26.80% Employees Severance Indemnity Fund 8.00% Vacation Bonus 2.78% Work Accident Insurance 2.00% Total 32.78% – 39.58% Employee Contributions Social Security 7.50% – 14.00% Total 7.50% – 14.00% Employee Income Tax Up to BRL 22,344 per year (EUR 4,092) 0.00% Between BRL 22,344 and BRL 33,924 (EUR 6,213) 7.50% Between BRL 33,924 and BRL 45,012 (EUR 8,244) 15.00% Between BRL 45,012 and BRL 55,980 (EUR 10,253) 22.50% From BRL 55,980 27.50%
Working Hours and Overtime
- Working hours in Brazil cannot exceed 44 hours per week.
- Overtime pay is compulsory if the working hours limit is exceeded. Overtime work cannot exceed 2 hours per day.
- Overtime work is paid at a rate of 150% of the regular salary on normal working days and 200% on weekends and public holidays.
- Employees in Brazil are entitled to a minimum of 30 days of paid vacation per year.
- Brazil celebrates 9 public holidays:
- New Year’s Day: January 1st
- Tiradentes’ Day: April 21st
- Labor Day: May 1st
- Independence Day: September 7th
- Our Lady of Aparecida: October 12th
- All Souls’ Day: November 2nd
- Republic Proclamation Day: November 15th
- Christmas: December 25th
- State Holiday: Varies from one state to another
Parental Leave and Sick Leave
- Female employees in Brazil are entitled to 120 days of paid maternity leave. Employees receive their full pay during maternity leave, covered by social security.
- New fathers can take up to 5 days of paid paternity leave after the birth of their child. Pay during this leave is fully covered by the employer.
- Employees in Brazil are entitled to 15 days of paid sick leave per year, fully covered by the employer. If the leave exceeds 15 days, employees can apply to receive monthly payments by social security.
- Employees can take 5 consecutive days of paid leave after the death of an immediate family member and 3 days for their marriage.
- Employees in Brazil have to give a one-month notice before leaving their jobs.
Further Useful Information
Additional information about the advantages of the Brazilian market and the strengths of the local workforce is provided by the Brazilian Investment Authority.
Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.