Employer of Record Brazil

Our Employer of Record in Brazil service enables clients to hire employees without the need to operate a local legal entity there.

About EOR Brazil

It makes a big difference to develop a new market with your own personnel on the ground. Particularly for functions related to sales & marketing, business development, distributor management, and service & maintenance, our customers are very satisfied using our Brazil Employer of Record Service.

Our customers and their local teams can be free of the distractions of administrative tasks and complex local requirements. So you can fully focus on the development of your core business.

If your local business grows large enough, you can easily transfer the employees to your own subsidiary. It also provides a quick exit strategy if necessary. In addition to Brazil, we offer Employer of Record services in several other countries.

Get in Touch with Us

Alp Atasoy

Sales and Business Development Consultant

Employer of Record Brazil - FMC Group's Approach

We offer:
Quick, flexible, and easy entry into Brazil in compliance with local employment laws
Complete control over business development with your own team
Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
Using our comprehensive recruitment experience for international clients, we can form a local team that fits your corporate culture.
Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
Allowing for easy market exit if necessary
Integrating your employees into our team through motivational events and special meetings

EOR Brazil Management & Reporting Flow

Hiring an Employee

Employment Contract – indefinite vs. fixed term

In Brazil, written employment contracts in Portuguese are recommended, clearly outlining compensation, benefits, and obligations. The contract should specify salary in BRL (Brazilian Real). Employers are also required to record key employment details on the employee’s labor card, including the employee’s name, address, and taxpayer number, the hiring date, contract duration (if temporary), position, salary, and payment frequency, as well as holiday entitlements and leave provisions.

Probation Period

In Brazil, the maximum duration for a probationary period is 90 days, typically divided into two equal 45-day segments. Upon completion of the probation period, an employment contract may be terminated, resulting in a reduced final payment, which includes the salary for the probationary period, any unused vacation pay, and a prorated 13th-month salary. It is important to note that a probationary period cannot be included in a fixed-term contract

Work Week, Overtime & Maximum Working Hours

In Brazil, the maximum weekly working hours are capped at 44 hours. Typically, a standard workday consists of 8 hours, with an additional 1 hour for lunch. Overtime is compensated at a minimum rate of 50% above an employee’s regular hourly wage, with the potential for a higher percentage as specified in a collective bargaining agreement. Furthermore, overtime performed on Sundays or holidays is compensated at a rate of 100% of the employee’s standard pay. Certain roles, such as those of managers, executives, and employees who primarily work outside the office (e.g., remote or field-based positions), are exempt from overtime pay.

Income Tax

In Brazil, employers are obligated to withhold income tax and social security contributions from their employees’ wages. The income tax is applied monthly, with a progressive tax rate structure, as detailed below:

Gross Monthly Income	Tax Rate(%)
Up to BRL 2,259.20	0%
BRL 2,259.21 – BRL 2,826.65	7.5%
BRL 2,826.66 – BRL 3,751.05	15%
BRL 3,751.06 – BRL 4,664.68	22.5%
More than BRL 4,664.69	27.5%

Typical Benefits

In Brazil, health insurance is provided by the government, though private health insurance has become a common employee benefit.

Basic monthly benefits for local employees are mandatory and typically include a meal voucher, transportation voucher (for on-site work), and life insurance.

A 13th-month salary is a legal requirement in Brazil and is equivalent to one full month’s salary plus the average of commissions and bonuses earned throughout the year. This is paid in two installments: the first in November and the second in December. A pro-rated 13th-month salary is also owed upon termination. It is important to note that the 13th-month salary is a statutory benefit, separate from the base salary. When negotiating with candidates, it is crucial to clarify whether the offered salary is inclusive or exclusive of the 13th-month payment.

Visa for the Employees

Foreign employees in Brazil must obtain a residence permit and a work visa. The main types of work visas include:
Permanent Work Visa (Visto Permanente): For skilled professionals, researchers, and investors who meet specific investment thresholds. After two years, VITEM V visa holders in this category may apply for permanent residency.
VITEM V Visa: A temporary visa for foreigners providing technical, research, or professional services. It requires approval from the Ministry of Labor and Employment.
VITEM II Visa (Business Trip): For business visitors, allowing a stay of up to 90 days per year. Holders cannot accept payment from Brazilian companies.
For a VITEM V visa, applicants must meet certain educational and experience criteria. The visa is valid for two years and may be converted to a permanent visa. Additionally, foreign workers’ salaries must be at least twice those of local employees.

Time off Policies

Public Holidays

There are several federal holidays in Brazil, including:
New Year’s Day
Tiradentes’ Day
Labor Day
Independence Day
Our Lady Aparecida
All Souls Day
Republic Proclamation Day
Christmas Day
Election days in Brazil are recognized as national holidays, and the country also observes various religious and ethnic celebrations. Public holidays can be established at the federal, state, and municipal levels. While most holidays are observed across the country, individual states and cities may have their own specific holidays as well.

Annual Leave

Sick Leave

Other Leave Types

Maternity Leave: Expectant mothers are entitled to 120 calendar days of maternity leave and are protected from dismissal during pregnancy. Employees continue to receive their salary and benefits throughout the protection period, with salary payments covered by Brazil’s social security system (Instituto Nacional do Seguro Social or INSS).
Paternity Leave: Non-birthing parents are eligible for 5 calendar days of paid leave, which must be requested beforehand.

Terminating an Employee

Either party may terminate the employment contract with 30 days’ written notice or payment in lieu of notice. After one year of service, employees are entitled to an additional 3 days of notice per year, up to a maximum of 90 days, though only 30 days can be worked.

Upon termination without cause, the final payment includes salary up to the termination date, pro-rated vacation pay, 13th-month salary, bonuses, overtime, and a 40% penalty on FGTS deposits.