How to hire and pay employees in Brazil
With Instahirin, your business can easily hire employees in Brazil. No more worrying about local laws, complex tax systems, or managing international payroll.
Before hiring
EMPLOYEES IN The Brazil
Before hiring employees in Brazil, one key thing employers should be aware of is the country’s strict data protection law LGPD (Lei Geral de Proteção de Dados). Similar to GDPR, the LGPD requires you to handle employee personal data responsibly and securely, especially when transferring data across borders. Non-compliance can result in significant penalties, so it’s essential to understand your obligations before hiring.
Another important factor is Brazil’s comprehensive labor laws under the CLT (Consolidação das Leis do Trabalho). Employers are required to offer mandatory benefits, including social security (INSS), paid vacation, 13th-month salary (Décimo Terceiro), severance fund contributions (FGTS), and transportation or meal allowances. Brazil has strict rules on working hours, overtime pay, and termination processes—making compliance a priority from day one.
At a glance
CURRENCY
BRL
OFFICIAL LANGUAGE
Portuguese
PAYROLL FREQUENCY
Monthly
EMPLOYER TAXES
34% to 38%
of gross salary
13th / 14th SALARY
N/A
Good to know
Brazil has a universal public healthcare system (Sistema Único de Saúde – SUS) funded through taxes, providing free access to essential medical services. Many employers also offer private health insurance (planos de saúde) as a benefit, giving faster access to specialists, elective procedures, and private hospitals.
The standard workweek is 44 hours (usually 8 hours/day Monday–Friday plus 4 hours on Saturday). Daily hours should not exceed 8 hours, and overtime is permitted up to 2 hours per day, paid at 150% of the regular rate (or 200% for nighttime hours). Workers must receive at least one full day off per week.
Labor laws in The Brazil
Working hours and overtime
Brazil’s federal constitution directs working hours to be eight hours per day and 44 hours per week.
Employment contracts
When doing business in Brazil, an employment agreement or contract is not required. However, it is strongly recommended to have a written employment contract for the employer and employee to agree on certain conditions such as:
- Remuneration
- Job description
- Working hours
- Fixed-term or indefinite-term contract
- Probationary period
Probationary period
Brazil has a maximum probationary period of 90 days. The probation can be split into two periods that add up to 90 days and can only be extended once.
Calculate costs to hire internationally
Benefits and leave in The Brazil
Annual leave in Brazil
Brazilian labor law guarantees employees annual paid leave of 30 days if they have worked at least one year and if they have not been unjustifiably absent. If unjustifiably absent, employees will progressively lose days of leave, as follows:
- With up to five unjustifiable days of absence in a year, an employee receives 30 days of paid leave for the following year
- With six to 14 unjustifiable days of absence in a year, an employee receives 24 days of paid leave for the following year
- With 15 to 23 unjustifiable days of absence in a year, an employee receives 18 days of paid leave for the following year
- With 24 to 32 unjustifiable days of absence in a year, an employee receives 12 days of paid leave for the following year
An employee’s annual leave must be remunerated with payment of the employee’s usual monthly compensation plus a one-third vacation bonus in addition to the remuneration. The payment must be made two days before the leave takes place.
Sick leave
The Brazilian labor code designates up to 15 consecutive days for sick leave, based on a medical report confirmation. Employers directly pay employees for the first 15 days of sick leave at their full salary. Any more sick days are paid by Brazil’s National Institute of Social Security (INSS).
Parental leave
Pregnant employees are entitled to 120 days of paid maternity leave in Brazil. The employer directly pays the employee, but employers are reimbursed by Brazil’s Social Security system. Employers can extend the leave to 180 days and be reimbursed by tax benefits granted by Brazil’s federal government.
Employees are entitled to five days of paternity leave, fully paid by the employer. Employers can grant an extension of 15 days and be reimbursed by tax benefits granted by Brazil’s federal government.
Holidays
Brazil’s federal, state, and municipal legislation set regional and national holidays, which are not included in the minimum paid leave entitlement but are taken in addition to annual leave.
Employer tax
In Brazil, employers contribute approximately 28%–31% of an employee’s gross salary, covering social security (INSS, ~20%), workplace accident insurance (RAT, 1%–3%), “third‑party” labor funds (SESI, SENAI, etc., ~5.8%), and the severance guarantee fund (FGTS, 8%).
Individual tax
In Brazil, individuals pay progressive federal income tax (IRPF) ranging from 0% to 27.5% on annual income, plus mandatory social security contributions (INSS) of 7.5%–14% and other levies depending on state and municipality.
Termination in The Brazil
Terminations in Brazil can be complex. There is at-will termination in Brazil for employers except for certain employees (pregnant, suffer an accident at work, or are elected president of the internal commission for accident prevention).
Compliant terminations in Brazil include:
- By mutual agreement
- Voluntarily by the employee
- Unilaterally by the employer
- By the expiration of the contract
Notice period
Only in the event of a termination without cause, must an employer give an employee a notice of termination prior to dismissal.
Notice periods for dismissals in Brazil must be at least 30 days, with three days added per year of service, limited to 90 days in total. The employer may choose to provide pay in lieu of notice and release the employee from working.
Notice periods for resignations in Brazil are 30 days.
Notice periods are cut in half when there is termination by mutual consent from the employer and employee.
Start hiring employees in
Brazil
Setting up a business entity everywhere you want to hire a new employee isn’t scalable it’s time-consuming and costly. Brazil’s complex labor laws, strict tax rules, and mandatory social benefits can be difficult to navigate. Managing contracts, payroll, and compliance manually often leads to errors and inefficiencies.
With InstaHirin, you can easily manage HR, payroll, and automate compliance in Brazil and 180+ countries all from one user-friendly platform so you can hire quickly and confidently without setting up a local entity.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While InstaHirin yster strives to provide current and accurate information, InstaHirin makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
