Employer of Record (EOR) Brazil

Expand your team in Brazil without the hassle of setting up a local entity—Hire, Onboard, and Pay employees with complete compliance through Globaine.
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Simple & Compliant Hiring with Globaine's Employer of Record (EOR)

Hire in Brazil with Confidence 
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Brazil is handled efficiently and in full compliance with local regulations.

Fast Time-To-Hire

Onboard employees in as little as 12 hours.

Cost-Efficient

The most affordable solution on the market, saving you time and money.

Compliant Contracts

We draft bilingual contracts compliant with Brazilian labor law.

Global Reach, Local Expertise
Hire not just in Brazil, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.

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HIRING

in Brazil

A validemployment contract must comply with the CLT (Consolidation of Labor Laws). It should outline the employee’s role, salary, working hours, and benefits. Additionally, it must be signed by both parties and registered if it’s a formal employment relationship.

Written contracts are mandatory for fixed-term, temporary, or part-time arrangements. For indefinite contracts, while verbal agreements are legally recognized, a written contract is strongly recommended to avoid disputes and ensure clarity.

Salaries must be stated in Brazilian Reais (BRL) and specify whether the amounts are gross or net. The contract should also clarify the frequency of payments, typically monthly, and include mandatory benefits such as 13th salary and vacation pay.

Specific clauses such as non-compete agreements, confidentiality, teleworking arrangements, and probationary terms (up to 90 days) must be explicitly mentioned to be enforceable under Brazilian law.

ONBOARDING

in Brazil

1. What are the key steps in employee onboarding in Brazil?

Employees must provide personal identification documents, a CPF (taxpayer ID), proof of address, and a CTPS (work booklet). Employers must also register the employee in the eSocial system, a government platform for managing labor information.

2. When should employees complete pre-hire medical checks in Brazil?

Pre-employment medical checks are mandatory to assess the employee’s physical and mental fitness. These checks are particularly crucial for roles with physical labor or workplace safety risks.

3.What documents are required for onboarding in Brazil?

Required documents include:

  • CPF (taxpayer ID)
  • CTPS (work booklet)
  • RG (national ID)
  • Proof of residence
  • Bank account details for salary payments

PAYROLL

in Brazil

Salaries in Brazil are paid monthly and must comply with the minimum wage laws. Employees are entitled to additional payments, such as the 13th-month salary, vacation allowance, and severance fund contributions (FGTS).

Employers must provide allowances for remote employees to cover work-related expenses like internet and electricity. These payments must be included in the payroll and properly documented to comply with tax regulations.

The national minimum wage is BRL 1,320 per month (as of 2024). However, regional minimum wages may apply depending on the state.

In Brazil, the 13th-month salary (Gratificação de Natal) is a mandatory benefit requiring employers to pay an additional month’s salary, usually in two installments: one by November 30th and another by December 20th. It applies to all employees and is based on their monthly earnings. The 14th-month salary is not legally required but may be offered voluntarily or through collective bargaining agreements. Providing this additional benefit can improve employee satisfaction and enhance retention efforts.

TAXES

in Brazil

1.What are the income tax rates in Brazil?

Brazil uses a progressive tax system with rates ranging from 0% to 27.5% based on income. Employers must withhold these taxes from employee salaries and remit them to the Receita Federal (Federal Revenue Service).

2. When should tax returns be submitted in Brazil?

Tax returns must be filed annually by the end of April for the previous calendar year. Employers must ensure monthly remittances of withheld taxes to avoid penalties.

3. How does the tax system apply to non-residents in Brazil?

Non-residents are taxed at a flat rate of 25% on their Brazilian-sourced income. Residency status is determined based on the duration of stay or visa type.

4. What social security contributions are required in Brazil?

Employers contribute 20% to 28.8% of an employee’s salary to social security, depending on additional levies like SAT (occupational risk). Employees contribute between 7.5% and 14%, depending on their earnings.

LEAVE

in Brazil

Employees are entitled to 30 days of paid annual leave after completing 12 months of employment. This leave can be taken in up to three installments, with one segment lasting at least 14 consecutive days.

Leave is only available after the first year of employment. However, prorated vacation can be granted at the employer’s discretion.

  • Maternity Leave: 120 days, fully paid by social security. Extended leave (60 days) may be offered in companies enrolled in the Empresa Cidadã program.

  • Paternity Leave: 5 days (standard) or up to 20 days under the Empresa Cidadã program.

Brazil observes 13 nationalpublic holidays, with additional regional holidays depending on the state or city. Employees are entitled to these days off, or they must receive double pay if required to work.

BENEFITS

in Brazil

1. What benefits are mandatory in Brazil?

  1. 13th Salary: An additional payment equivalent to one month’s salary, paid in two installments (November and December).

  2. FGTS (Fundo de Garantia do Tempo de Serviço): Employers must contribute 8% of an employee’s salary to the FGTS account, which the employee can access under certain conditions like dismissal, home purchase, or retirement.

  3. Paid Vacation: Employees are entitled to 30 days of paid vacation after one year of service, plus a 1/3 bonus on the vacation pay.

2. How is the home office allowance structured in Brazil?

In Brazil, there is no specific legal requirement for a home office allowance. However, employers may choose to provide a reimbursement for work-related expenses, such as internet and electricity costs, to employees working remotely. The amount and structure of these allowances are typically defined in the employment contract.

3. When should meal allowances be provided in Brazil?

Meal allowances in Brazil are not mandatory by law, but many employers provide them as a benefit. When offered, they are typically provided as a daily allowance for employees who work during regular business hours. The allowance is often tax-free up to a certain limit, and its structure is outlined in the employment contract.

4. What additional benefits are common in Brazil?

In Brazil, common additional benefits offered by employers include private health insurance, transportation allowances, and life insurance. Some companies also provide profit-sharing, performance bonuses, and support for professional development. While not mandatory, these benefits are often provided to enhance employee satisfaction and retention.

TERMINATIONS

in Brazil

The notice period is 30 days, plus an additional 3 days for each year of service, up to a maximum of 90 days.

Termination without notice is allowed for serious misconduct, such as fraud, violence, or breach of company policies, as defined by labor laws.

In Brazil, severance payments include proportional vacation pay (férias proporcionais), a proportional 13th-month salary, and the FGTS (Severance Fund) balance, which the employee can withdraw. If terminated without notice, the employer must pay one month’s salary as notice compensation. Additionally, a 40% penalty on the FGTS is paid by the employer upon termination.

Mutual termination allows employers and employees to agree on ending the contract, reducing severance costs. Both parties must sign an agreement filed with the labor ministry.

FAQs

Globaine ensures compliance by adhering to Brazil’s stringent labor laws, including work contracts, social security contributions, and employee rights such as paid leave. Our local experts handle payroll, tax, and benefits management to ensure full legal adherence.

By using Globaine’s EOR solution, companies save on setup costs, legal fees, and administrative expenses related to establishing and maintaining a local entity, reducing overhead while ensuring full compliance.

Globaine guarantees quick onboarding by utilizing a streamlined process that includes pre-established agreements, automated systems for document management, and a local expert team ready to onboard employees efficiently.

Yes, Globaine handles complex scenarios by providing bilingual contracts and managing terminations in compliance with Brazilian labor laws, ensuring that all legal procedures are followed to minimize risks.

Without an EOR, companies risk non-compliance with Brazil’s labor laws, leading to penalties and lawsuits. Globaine mitigates these risks by managing all employment obligations and ensuring full legal compliance.

Employer of Record (EOR) Brazil

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