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Brazil EOR Compliance Guide

Located in South America, Brazil is known for its highly educated talent pool and competitive employment costs for global companies. Employers must follow specific rules regarding minimum wages, employment contracts (written in Portuguese with CTPS/eSocial registration required), and social security contributions (INSS employer ~20%, FGTS 8% monthly).

Currency: Brazilian Real (BRL)

Language: Portuguese

Minimum Wage

BRL 1,518/month.

Probation Period

45 days (extendable to 90 days).

Employment Cost

28-30% (employer burden)

Paid Leave Days

30 days + 1/3 vacation bonus

Working Hours

44 hours/week

Employer INSS

~20% + RAT/SAT (1-3%)

FGTS Deposit

8% monthly

13th Salary

Paid in 2 instalments

VAT

Varies by state (ICMS/ISS)

Hiring Guide

Employment Contracts

Written contracts in Portuguese are required, specifying role, pay, hours, location, and collective agreements. Indefinite-term contracts are standard; fixed-term contracts are limited to 2 years. All employment must be registered in CTPS/eSocial via a formal CNPJ.

Payroll & Taxes

Employer INSS contribution ~20% plus sector-dependent levies (RAT/SAT 1-3%), employee progressive withholding (7.5-14%), and mandatory FGTS deposits of 8% monthly via Caixa. Total employer payroll burden commonly 28-30%. eSocial digital reporting mandatory for all employment events with penalties for delays.

Benefits & Leave

30 days annual paid leave plus 1/3 vacation bonus, 13th month salary paid in two instalments, maternity leave (120-180 days), paternity leave (5-20 days), and sick leave with employer covering first 15 days at full salary.

Termination & Severance

Notice period ranges from 30-90 days depending on length of service. Without-cause termination requires payment of FGTS balance plus 40% employer penalty, proportional 13th salary, and unused vacation with 1/3 premium. eSocial termination event filing required.

EOR Requirements

EOR providers must maintain formal employer status (CNPJ holder), perform genuine HR functions (payroll, contracts, HR records, tax reporting), comply with applicable collective bargaining agreements (CBAs), and demonstrate operational separation to mitigate “empresa interposta” joint liability risks.

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For detailed hiring information, customized employment guidance, or support with your Brazil EOR setup, please reach out to our team. We provide CLT-compliant employment contracts, payroll processing & statutory remittance, eSocial registration & reporting, benefits administration, and customized onboarding & offboarding services.

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