Hiring guide · Americas
How to hire in Brazil
To hire in Brazil you need a registered entity operating CLT payroll with eSocial reporting, or an Employer of Record that holds one. Fully loaded employer cost commonly runs 40–70% above base salary once INSS, FGTS, the 13th salary and vacation bonus are included.
- Currency
- BRL
- Payroll cycle
- Monthly
- Employer cost
- ~40–70% loaded
- Notice
- 30 days + 3 days per year
The talent market in Brazil
Brazil is the largest talent market in Latin America, with strong engineering supply in São Paulo, Campinas, Belo Horizonte, Florianópolis and Recife, and time zones that overlap the entire US working day. It is the default nearshore base for US product teams that want same-day collaboration.
Employment is heavily codified under the CLT, and the cost structure carries several statutory extras that do not exist elsewhere: a 13th month salary, a one-third vacation bonus, and FGTS deposits that convert into a severance payment on dismissal without cause.
Salary benchmarks in Brazil
Indicative annual gross base salary in BRL for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | BRL 150,000 – 220,000 |
| Senior software engineer | BRL 220,000 – 330,000 |
| Account executive (SaaS) | BRL 150,000 – 250,000 incl. variable |
| Customer support specialist | BRL 55,000 – 90,000 |
Employment rules and payroll in Brazil
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
44 hours, commonly worked as 40 over five days
Probation
Up to 90 days as a fixed-term trial
Notice period
30 days plus 3 additional days per year of service, capped at 90
Paid leave
30 calendar days after twelve months, plus a one-third vacation bonus
Public holidays
Around 12 national plus state and municipal days
Payroll cycle
Monthly, with a 13th salary paid in two instalments
Employer contributions
INSS around 20%, FGTS 8%, plus RAT, third-party levies, 13th salary and vacation bonus accrual
Contractor, EOR employee or your own entity?
Three ways to engage someone in Brazil. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in Brazil
Pejotização — engaging a full-time worker through their own PJ company — is one of the most litigated issues in Brazilian labour courts. A successful claim converts the whole relationship retrospectively to CLT, with back FGTS, 13th salaries, vacation, overtime and social contributions, plus a 40% FGTS penalty on dismissal.
Work permits and right to work
Brazilian nationals and permanent residents need no permit. Foreign nationals require a work visa sponsored by the employing entity, with residence authorisation from the Ministry of Justice; processing typically takes one to three months and the sponsor must be the entity that will hold the employment relationship.
Hire in Brazil without an entity
Our Employer of Record page for Brazil covers statutory cost, compliance obligations and onboarding timelines in detail, through licensed in-country partners.
EOR in Brazil- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in Brazil: frequently asked questions
Can we hire in Brazil without a local entity?
Yes. A Brazilian Employer of Record employs the person under CLT through its own entity, runs eSocial reporting, FGTS deposits and the 13th salary, and absorbs the labour-court exposure that comes with getting any of it wrong.
Why is the employer cost in Brazil so high?
Base salary is only part of it. INSS at around 20%, FGTS at 8%, RAT and third-party levies, a 13th month salary and a one-third vacation bonus together commonly add 40–70% before benefits such as meal vouchers and transport allowance.
Is a PJ contract legal in Brazil?
It is legal for genuinely autonomous service providers. It is not legal as a substitute for employment: where there is subordination, personal service, regularity and payment for time rather than deliverables, labour courts reclassify the relationship as CLT employment.
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Get the Brazil Hiring Cost Guide
A country brief covering fully loaded employment cost in BRL, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for Brazil.