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Brazil EOR & PEO

Start hiring in Brazil

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Simple, compliant hiring with Horizons EOR

Hire Employees in Brazil

Horizons provides compliance solutions to ensure your business in Brazil operates in line with Brazilian labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Brazil in a range of industries, from customer service, to accounting services, to software development.

We also process monthly payroll, and, as a Brazil Employer of Record, absorb all local employer liabilities. Partnering with our Brazil EOR is the quickest and most cost-effective way to enter the Brazilian market. 

Note, a Brazil Employer of Record is also known as a Brazil Professional Employer Organization (PEO).

Facts & Stats

EOR Platform

Hire in Brazil, and pay employees through our platform or app.

EOR Cost

Our Brazil EOR solution is the most affordable on the market.

Time-to-hire

Fast onboarding in Brazil, hire in as little as 24 hours.

Contracts

We draft labor contracts compliant with Brazil labor law.

Local Benefits

We administer all mandatory benefits and contributions in Brazil, including FGTS.

180+ Countries

It doesn’t stop with Brazil — we are an international EOR

stay compliant with Brazil labor laws

Employment Laws

Brazil employment contracts

When hiring in Brazil, it is possible to use both spoken and written arrangements, but we would always recommend producing a formal written contract of employment. The contract should be in Portuguese, the official language of Brazil, and include all details of your agreement such as salary/wage (in BRL currency), entitlements, and benefits.

By partnering with our Brazil EOR, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Fixed-term
Probationary period12 months maximum
Termination notice period30 days
Severance

Only applicable after 12 months’ service: 1 month’s salary per year of service

If for a business reason: 2 months’ salary per year of service

Important notes

Maximum 2 years’ contract

Maximum 1 time renewal

Limited contract must be justified to be accepted by the labor bureau

Indefinite
Probationary period12 months maximum
Termination notice period30 days
Severance

Only applicable after 12 months’ service: 1 month’s salary per year of service

If for a business reason: 2 months’ salary per year of service

Working hours in Brazil

The legal working week for employees in Brazil is 44 hours. Often, this is composed of a four-hour day on Saturday in addition to the standard eight hours from Monday to Friday, but hours can be arranged differently across the week.

Hire compliantly in Brazil without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Brazil

The legal working week for employees in Brazil is 44 hours. Often, this is composed of a four-hour day on Saturday in addition to the standard eight hours from Monday to Friday, but hours can be arranged differently across the week.

There are several nationally recognized holidays in Brazil, as well as further unofficial holidays, such as Good Friday. These are observed in some but not all areas, so always be sure to understand the local customs in your area of operation.

The main days celebrated at national and regional levels are:

DateHoliday name
1 Jan MondayNew Year’s Day
12 Feb MondayCarnival Monday
13 Feb TuesdayCarnival Tuesday
14 Feb WednesdayCarnival end (until 2pm)
29 Mar FridayGood Friday
21 Apr SundayTiradentes Day
1 May WednesdayLabor Day / May Day
30 May ThursdayCorpus Christi
7 Sep SaturdayIndependence Day
12 Oct SaturdayOur Lady of Aparecida / Children’s Day
28 Oct MondayPublic Service Holiday
2 Nov SaturdayAll Souls’ Day
15 Nov FridayRepublic Proclamation Day
24 Dec TuesdayChristmas Eve (from 2pm)
25 Dec WednesdayChristmas Day
31 Dec TuesdayNew Year’s Eve (from 2pm)

Employment benefits in Brazil

It’s always important that you understand what kinds of benefits your employees in Brazil are legally entitled to or will expect to receive. Our Brazil Employer of Record provide support for managing the following areas:

Vacation in Brazil

Employees in Brazil can take 30 days of vacation leave per year after completing one year of employment. They are also entitled to a holiday bonus payment of one-third of normal monthly pay.

Sick leave in Brazil

Employees in Brazil are entitled to up to normal pay from their employer for the first 15 days of sickness (upon provision of a doctor’s note). They can then receive payments from a social program called INSS.

Maternity and paternity leave in Brazil

Mothers in Brazil are legally entitled to four months of maternity leave, and cannot be fired throughout pregnancy or within one year of their child’s birth date, with full salary and benefits being paid throughout. Under some circumstances, employers can extend the four-month period by 60 days and write the payment off as a tax deduction.

Fathers can take up to five days of paid leave.

Employee severance and terminations in Brazil

Terminations of employment must be notified in writing by either the employer or employee, 30 days in advance, or with an equivalent payment. Employees are entitled to a further three days of notice after one year of service, and three more per year of service up to a maximum of 60 days (90 days total).

Severance payments must include a 13th-month salary, unused vacation payments, and any other relevant benefits, all calculated pro rata. When employees are terminated by an employer they also receive a payment from a national unemployment fund (FGTS). Employers fund this with 8% of salary and employees receive the fund upon termination. If the termination is without proper cause, the employer must pay a further 40% of the total fund to the employee, and 10% to the government.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Brazil EOR can mitigate risk for foreign companies and provide guidance through this process. 

Taxation in Brazil

Employers can expect to pay roughly 80% in addition to each employee’s salary in added contributions.

The corporate tax rate in Brazil is 15%, but there is also a 10% surcharge on annual taxable income above 240,000 BRL.

Health insurance in Brazil

In Brazil, health insurance is offered by the government, so employees are covered for most medical care as standard. However, many companies do choose to offer private insurance a part of their employment benefits package.

In some cases, the employee is, in fact, entitled to private health insurance. This will depend on the collective bargaining agreement (union) of the hiring company’s industry.

Additional benefits in Brazil

Employees in Brazil are entitled to a ‘transport voucher’ to be used for transportation to and from the office, valued at 6% of an employee’s salary. This is a mandatory allowance.

Some employees are also entitled to a ‘meal voucher’ to be used for food. If an employee is entitled to a meal voucher, and at what value, is usually determined the collective agreement (union) of the industry your employee is working in. Each case will be different.

hassle-free Brazil compensation & benefits

Compensation & Benefits

Compensation Laws in Brazil

The minimum wage in Brazil is R$1,320 per month (approximately 258.59 USD). Details of compensation should always be included clearly in your employment contracts. As an employer in Brazil, you may also be pressured by trade unions to increase salaries periodically.

It is mandatory for employers in Brazil to pay a 13th-month salary, where workers receive an extra one month of salary in two parts across November and December.

Benefit management in Brazil

Setting up your Brazilian benefits system as a foreign employer can be difficult. The laws are complicated, there is a potential language barrier in all negotiations, and legislation can change regularly. These factors can make it a very time-consuming process.

A great solution is to outsource your Brazil benefits management to Horizons’ Brazil EOR. We’ll help you get everything organized, compliant, and running as quickly as possible, so you can focus on your expansion efforts.

Hire in Brazil in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Brazil PEO” and “Brazil EOR” are used interchangeably.

An EOR in Brazil can feasibly hire both local and foreign nationals to work in Brazil.

However, the ability of Horizons to sponsor your foreign national employee in Brazil may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Brazil EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Brazil.

It is possible to get a work visa in Brazil. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Brazil are limited, however—get started today to secure your employees’ visa spot.

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