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Brazil has one of the most structured labour systems in Latin America, governed by the Consolidação das Leis do Trabalho (CLT). The Brazilian market offers a large workforce, strong worker protections, and mandatory benefits that significantly influence the total cost of employment. This guide summarizes everything employers need to know before hiring or paying employees in Brazil.
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Currency
Languages
Minimum wage
Working hours
Probation period
Paid leave days
PEO Services in BrazilPEO services in Brazil support companies that already have a local entity by managing key HR functions. This includes ensuring local HR compliance, administering payroll, handling benefits management, and assisting with employment contract drafting.
For companies with an entity in Brazil, PEO supports:
Note: The information above is intended for general guidance only and should not be considered legal advice. Always verify current federal, state and local rules before hiring.
Employment ContractEmployment in Brazil is generally governed by CLT contracts, which may be:
All contracts must be documented and include:
Employment in Brazil is generally governed by CLT contracts, which may be:
Notice Periods:
Brazilian notice rules are defined by CLT:
Termination of Employment
Brazil allows termination for:
Employer Obligations
Employers must submit:
Note:Information is for general guidance and should not be considered legal advice. Labour laws evolve; always verify the latest updates.
Employee BenefitsBrazil’s benefit structure includes mandatory statutory benefits plus optional perks offered by competitive employers.
Mandatory / statutory benefits:
Leave Policies
Annual Leave: 30 days after one year
Sick Leave:
Parental Leave:
Public Holidays: 12 national + regional variations
Healthcare
Retirement Benefits
Social security (INSS) ensures:
Employer and employee both contribute.
Social Security Contributions (INSS & FGTS – 2026)
Employer:
Employee:
Bonus & Incentive Programs
Common incentives:
Taxes in BrazilBrazil applies progressive tax rates on salaries through payroll withholding.
Income Tax (2026 – High Level):
Tax Considerations:
Employees receive:
Always confirm with the current Brazilian tax tables before payroll processing.
Payroll in BrazilPayroll cycles typically follow:
Payroll Requirements
Payroll Deadlines
Declarations
Legal RegulationsBrazilian labour law (CLT) defines:
Total Employment Cost:
Employer contributions typically add ~30%–38% to base salary due to:
Work Permits & Visas for the Brazil
Foreign workers must hold a valid visa aligned with job duties.
EOR & PEO Services in the Brazil.Employer of Record (EOR) services in Brazil allow companies to hire local employees without setting up a Brazilian entity. The EOR manages all CLT-compliant employment contracts, oversees payroll and statutory deductions, ensures FGTS, INSS, and overall tax compliance, and handles end-to-end HR processes such as employee onboarding, offboarding, and documentation.
EOR handles:
PEO services in the U.S.:
PEOs enter a co-employment relationship, providing payroll, benefits, HR administration,
workers’ compensation and compliance support while you retain day-to-day control over
employees.
Payroll CalculatorA Brazil-specific payroll calculator can estimate:
| COUNTRY | TAXES / COSTS | NETPAY |
|---|---|---|
|
$52,600 | $430,820 |
|
$52,600 | $430,820 |
Experience a custom demo and get all your queries resolved by our experts.
An EOR manages compliance, payroll, and contracts so you can hire without opening a local entity.
They include CLT rules on employment types, leave, severance, benefits, and worker protections.
Salaries must be paid in BRL via monthly payroll cycles with INSS and FGTS withheld.
Hire directly through a local entity or via an EOR/PEO to handle contracts, payroll, and compliance.
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