Employer of Record · Americas

Employer of Record (EOR) in Brazil

A Brazilian Employer of Record is a licensed local company that employs your worker under a CLT contract, remitting INSS and FGTS and paying 13th salary and the vacation bonus. TalentStores matches and orchestrates vetted Brazilian EOR partners.

Time to hire
5–10 days
Employer burden
~40–50%
Payroll cycle
Monthly
Currency
BRL

Why hire in Brazil

Brazil is Latin America's largest talent market and its strongest engineering base, with time zones only one to three hours ahead of US Eastern and a large pool of senior developers already working for US product companies.

It is also the most administratively demanding market in the region. CLT employment carries 13th salary, a one-third vacation bonus, FGTS deposits and union agreements that vary by category, and labour claims are common. An EOR partner runs CLT employment properly rather than pushing you toward a contractor arrangement that will not survive scrutiny.

  • Largest LatAm talent pool

    Deep senior engineering supply in São Paulo, Florianópolis, Belo Horizonte and Recife.

  • US time-zone alignment

    One to three hours ahead of US Eastern — genuine full-day overlap.

  • CLT done correctly

    Full employment contracts instead of PJ contractor arrangements that carry reclassification exposure.

  • No Brazilian entity

    Skip CNPJ registration, local director requirements and Brazilian accounting obligations.

  • Union agreements applied

    Category-specific collective agreements identified and applied to each contract.

  • Litigation risk contained

    Documentation, working-time records and exit calculations handled to withstand labour claims.

Compliance and statutory requirements in Brazil

Leave and holiday entitlements, social security, termination rules and payroll cadence — the obligations your employment partner carries on your behalf.

  • Paid leave

    Thirty calendar days of vacation after twelve months, plus a mandatory one-third vacation bonus; leave may be split into up to three periods.

  • Public holidays

    Around twelve national holidays plus state and municipal days, which vary by the employee's city.

  • Social security contributions

    Employer INSS of roughly 20% plus RAT and third-party contributions, bringing the statutory load to around 26–28% before FGTS.

  • FGTS

    8% of monthly salary deposited into the employee's severance fund account, plus a penalty on dismissal without cause.

  • 13th salary

    One extra month's salary per year, paid in two instalments in November and December, accrued monthly.

  • Termination rules

    Notice of 30 days plus three days per year of service, FGTS penalty on dismissal without cause, and full settlement of accrued vacation, 13th salary and bonuses.

Cost of employment in Brazil

Salary is only part of the number. These are the components that make up fully loaded cost, all modelled in BRL before you extend an offer.

  • Base monthly salary

    Quoted monthly; the annual cost is thirteen salaries, not twelve.

  • INSS and related charges

    Roughly 26–28% of payroll including RAT and third-party entity contributions.

  • FGTS

    8% of salary deposited monthly, plus a 40% penalty on the balance if you dismiss without cause.

  • 13th salary and vacation bonus

    Adds about 8.3% plus a third of one month's salary annually — accrued monthly, not funded at year end.

  • Meal, transport and health benefits

    Meal and transport vouchers plus private health cover are standard and often required by collective agreement.

  • EOR and platform fee

    Per-employee partner fee plus the TalentStores orchestration fee, quoted separately.

How TalentStores and the partner network deliver it

TalentStores is not the employer of record. We are the orchestration layer that selects, contracts and manages the licensed employment partner in Brazil — and gives you one system of record across every country you hire in.

  • Partner matched, not assumed

    We match your role and headcount to vetted employment partners licensed in Brazil, and show you the fee, coverage and service levels side by side before you commit.

  • One contract, one platform

    You contract with TalentStores. Partner agreements, employment contracts and amendments are generated, signed and stored against the employee record.

  • Cost modelled before offer

    Statutory contributions, mandatory benefits, accruals and partner fees are calculated up front, so the offer you approve is the cost you actually carry.

  • Onboarding orchestrated

    Document collection, background checks, registrations and start-date readiness run as a tracked workflow instead of an email thread.

  • Payroll and settlement in one bill

    Every partner invoice flows through the commercial engine, reconciled per employee and settled on a single consolidated bill.

  • Compliance monitored continuously

    Statutory changes in Brazil are pushed by the partner network and reflected in your cost model and contracts, not discovered at audit.

EOR in Brazil: frequently asked questions

Why is Brazilian employment cost so much higher than salary?

CLT employment carries INSS and related charges of roughly 26–28%, FGTS at 8%, 13th salary and a one-third vacation bonus, plus mandatory benefits. Budget 40–50% above base salary before the EOR fee.

Can we just hire Brazilian developers as PJ contractors?

Many companies do, but if the person works exclusively for you under direction and fixed hours, a labour court can reclassify the relationship and award full CLT entitlements retroactively. An EOR removes that exposure.

What is FGTS?

A severance fund: the employer deposits 8% of salary monthly into the employee's account, and pays an additional 40% penalty on the accumulated balance when dismissing without cause.

How does the 13th salary work?

It is an extra month of pay per year, split into two instalments in November and December. It accrues monthly, so the platform provisions it rather than presenting a year-end surprise.

How long does Brazilian onboarding take?

Five to ten business days once documents and the pre-employment medical exam are complete. The eSocial registration and CTPS entry are handled by the partner.

Get the Brazil Hiring Cost Guide

A country brief covering fully loaded employment cost in BRL, statutory contributions, leave and termination rules, and a sample offer breakdown for Brazil.

Ready to hire in Brazil?

Book a working session with our team, or take a self-guided tour of the platform first. Either way you will see the real workflow, partners and commercials before you commit.

Prefer numbers first? See pricing