Brazil Hiring Guide | Updated September 2026
15 min read
How to Hire Employees in Brazil
How to Hire Employees in Brazil
Foreign companies can hire employees in Brazil through a local entity or a properly structured employer of record or local employment provider. They can also engage independent contractors for genuinely autonomous services.
This guide explains how to hire remote workers in Brazil, compare legal models, calculate payroll costs, provide CLT benefits, onboard employees, and assess EOR support for software engineers.
Understand labor laws, payroll costs, mandatory benefits, employment contracts, and the step-by-step process to hire compliantly.
34.8%–36.8%
Indicative Payroll Charges
44 hrs
Maximum Workweek
UTC-2 to UTC-5
Timezone
On this page
Compare All Latin American Countries
Quick Facts About Hiring in Brazil
Minimum Wage
BRL 1,621/ month
$324,21 aprox. Brazil’s national minimum wage for 2026. A state wage floor or collective bargaining agreement may require a higher amount.
EMPLOYER PAYROLL CHARGES
34.8% to 36.8%
This is a general-regime planning range before benefit accruals. Employer activity, tax regime, risk factor, and third-party rates can change the result.
Currency
BRL, R$
Brazilian Real
PAYROLL FREQUENCY
Monthly
Monthly salary is generally due by the fifth business day of the following month.
STANDARD WORKWEEK
Up to 44 hours
The ordinary constitutional limit is eight hours per day and 44 hours per week, subject to lawful schedules and collective agreements.
PAID VACATION
Up to 30 calendar days
The standard entitlement follows a 12-month accrual period. Unjustified absences can reduce the number of days.
NOTICE PERIOD
30 to 90 days
Employer notice for termination without cause increases with service under the statutory formula.
LANGUAGE
Portuguese
Employment agreements, policies, payroll records, and employee communications should be prepared or reviewed for use in Brazil.
SEVERANCE REQUIRED
Depends on the termination
Dismissal without cause generally triggers a 40% FGTS indemnity and other final payments.
13TH-MONTH SALARY
Mandatory
Employees receive an annual Christmas bonus, usually paid in two installments.
PROBATION PERIOD
Up to 90 days
The written probationary contract can use one or more periods that do not exceed 90 days in total.
TIME ZONES
UTC-2 to UTC-5
Most major business centers use Brasília time, UTC-3. Brazil does not currently observe daylight saving time.
Why U.S. Companies Hire Remote Talent in Brazil
Brazil gives U.S. companies access to professionals across software development, data, product, design, finance, marketing, customer operations, and other remote functions.
Most commercial and technology centers operate on UTC-3, which supports substantial U.S. workday overlap. Employers should still compare talent supply, Portuguese and English requirements, total employment cost, and the correct hiring model.
Brazil is a strategic hiring destination offering skilled talent, favorable costs, and operational benefits, attracting businesses worldwide.
- Timezone Alignment
- Cost-Effective Talent
- Growing Tech Ecosystem
U.S. Workday Overlap
Brasília time is one hour ahead of U.S. Eastern Daylight Time and two hours ahead of Eastern Standard Time. Teams can share much of the same workday without requiring overnight schedules.
Brazil spans four time zones. Confirm the employee’s location before setting meetings, customer coverage, or on-call rotations.
Broad Professional Talent Market
São Paulo, Belo Horizonte, Florianópolis, Recife, Curitiba, Porto Alegre, Rio de Janeiro, and other cities support professional communities across software, engineering, fintech, design, marketing, and business services.
The size of the market does not guarantee availability for every stack or salary. Recruit against a defined role, seniority level, English requirement, and schedule.
Role-Based English Screening
English ability varies by profession and candidate. Define the speaking, writing, meeting, documentation, and client-communication level the position requires. Test those skills through live interviews and work samples.
Brazil-Specific Hiring Considerations
Brazilian employment combines federal CLT rules with social-security, FGTS, tax, occupational-safety, and collective bargaining obligations. The applicable collective agreement can change salary floors, benefits, premiums, schedules, and termination procedures.
Identify the employee’s location, employer activity, union category, and work arrangement before finalizing compensation.
Ways to Hire Employees and Contractors in Brazil
Foreign companies have three primary ways to hire in Brazil. The right option depends on headcount, expected duration, control over the work, tax exposure, and the company’s local infrastructure.
Establish a Local Legal Entity
A foreign company can create a Brazilian subsidiary and employ workers directly. The local entity signs CLT agreements, records employees, runs payroll, reports through eSocial, makes INSS and FGTS payments, provides benefits, and manages termination.
This option usually fits companies planning a permanent Brazilian operation or a substantial local workforce.
Pros
- Direct control over employment and payroll
- Local presence for long-term operations
- Direct management of employment policies
Cons
- Entity formation and ongoing administration
- Brazilian accounting, payroll, tax, and labor reporting
- Collective bargaining and occupational-safety obligations
Use an Employer of Record or Local Employment Partner
A foreign company may hire employees in Brazil without establishing its own entity by using a properly structured local provider. The provider’s Brazilian entity employs the worker and manages defined payroll and employment duties while the client manages the worker’s business responsibilities.
The EOR or staffing label does not establish compliance by itself. Brazil’s outsourcing law regulates service providers and can leave the contracting company secondarily liable for labor obligations during the service period.
Confirm the local employer, worker direction, service scope, applicable collective agreement, payroll reporting, benefits, occupational health process, termination responsibility, and permanent-establishment exposure before onboarding.
Pros
- No immediate entity setup
- Local payroll and employment administration
- Practical option for one employee or a small remote team
Cons
- Ongoing provider and payroll fees
- Client and provider responsibilities must be documented
- Liability and tax exposure require local review
Engage Independent Contractors
Companies can hire independent contractors in Brazil for autonomous, project-based services. The agreement should define deliverables, fees, intellectual property, confidentiality, tax documentation, and the contractor’s control over how the work is performed.
Some contractors provide services through their own legal entity, often described as a PJ arrangement. Creating a company or issuing an invoice does not by itself make the relationship independent.
Pros
- Suitable for defined projects or specialist services
- Lower employment administration
- Flexible project duration
Cons
- Limited company control over the work
- Contractor manages personal or business tax obligations
- Employment misclassification remains possible
Contractor Classification Warning
The Consolidation of Labor Laws defines an employee by the actual relationship, including personal service, ongoing work, dependency, and pay. Remote supervision through digital systems can also show subordination.
Fixed employee-like hours, continuous managerial control, personal service, exclusivity, indefinite duties, and integration into the company’s reporting structure can support an employment claim. Use a contractor only when the operating model preserves genuine independence.
Long-term contractors may lead to fines.
Hire Remote Talent in Brazil With Wow Remote Teams
Receive a Role-Matched Shortlist in Three Days
Tell us the role, required tools, seniority, work schedule, English level, and budget. Wow Remote Teams recruits and evaluates Brazilian professionals against those requirements.
You interview the candidates and choose between Staffing, Staff-to-Hire, or Direct Hire based on the employment responsibility you want to manage. Candidate interviews can begin within 72 hours for some searches, while specialized roles may take up to 14 days.
Tell us who you need
We vet the candidates
Hire - we handle the rest
Hire in Brazil with Wow Remote Teams
- No upfront candidate-search fee
- Role-specific screening and assessments
- Staffing, Staff-to-Hire, and Direct Hire options
- Transparent pricing before you commit
- Replacement support after hiring
Step-by-Step Hiring Process in Brazil
Recruitment and employment setup follow separate timelines. Candidate availability depends on the role, while registration, payroll, benefits, and occupational-health steps depend on the hiring model.
Define the Role and Hiring Model
Planning
Specify the position, responsibilities, seniority, tools, location, working hours, reporting line, English requirement, and compensation range. Decide whether the operating relationship requires a CLT employee or supports an independent contractor.
Confirm Compensation and Employer Costs
Budgeting
Compare the proposed salary with role and city benchmarks. Confirm the applicable collective agreement, then add payroll charges, 13th salary, vacation and its one-third premium, benefits, equipment, provider fees, and termination exposure.
Source and Screen Candidates
Recruitment
Recruit through relevant professional networks. Evaluate work history, technical ability, communication, English, schedule fit, and remote-work readiness using consistent criteria.
For engineering roles, test the exact stack and level of system ownership required. A generic coding exercise does not show production debugging, architecture judgment, security awareness, or written collaboration.
Interview and Select the Candidate
Selection
Use structured interviews and role-relevant assessments. Confirm availability, compensation, schedule, equipment, work location, and hiring model before issuing an offer.
Prepare the Agreement and Register the Hire
Employment Setup
Prepare a locally reviewed Portuguese or bilingual agreement. Complete permitted checks, the required occupational health process, CTPS Digital and eSocial registration, payroll configuration, INSS and FGTS setup, benefits enrollment, and remote-work documentation.
Complete Remote Onboarding
Before the Start Date
Provide equipment, system access, security policies, communication expectations, role objectives, and a documented first-month plan. Explain payroll dates, payslips, benefits, working hours, overtime approval, time off, expense treatment, and equipment return.
Employment Laws in Brazil
Brazil’s Constitution, CLT, social-security and FGTS laws, occupational-safety rules, data-protection requirements, and collective agreements govern employment.
An employment agreement should identify the parties, role, work location, schedule, salary, benefits, duration, and remote-work terms. The employer should also determine which collective bargaining agreement applies to the employee’s category and location.
Collective agreements can establish higher premiums, alternative schedules, time banks, or role-specific rules. Employees in genuine positions of trust and some telework arrangements may follow different time-control rules, but a remote-work label does not automatically remove working-time protection.
Termination, Notice, and Final Pay
An employer can terminate for a legally recognized cause when the facts and procedure support it. A dismissal without cause usually requires salary balance, notice or payment in lieu, proportional 13th salary, accrued and proportional vacation plus one-third, FGTS release, and the 40% FGTS indemnity.
Statutory employer notice starts at 30 days and adds three days for each year of service, up to 90 days under Law No. 12,506. Different payments apply to resignation, mutual termination, fixed-term expiry, and termination for cause.
Final settlement is generally due within 10 calendar days after the contract ends. Obtain a case-specific calculation and review any collective procedure before communicating a termination.
Required Employee Benefits in Brazil
Employees in Brazil receive paid vacation, a one-third vacation premium, paid holidays, social-security and FGTS coverage, family leave, a 13th salary, and other protections. Collective agreements can add meal, health, insurance, or other benefits.
Paid Vacation
Public Holidays
Brazil observes 10 national public holidays. Employees are entitled to a paid day off on these
dates.
Maternity and Paternity Leave
Eligible employees generally receive 120 days of maternity leave. Qualifying employers and employees under the Empresa Cidadã program can extend the period to 180 days.
The general paternity leave remains five days during 2026. Law No. 15,371 of 2026 establishes 10 days from January 1, 2027, 15 days in 2028, and a conditional move to 20 days in 2029. Collective agreements and employer programs can provide more favorable leave.
13th Salary and Other Common Benefits
The mandatory 13th salary equals one-twelfth of December remuneration for each qualifying month worked. The employer normally pays the first installment between February and November and the second by December 20 under Brazil’s Christmas bonus laws.
Transportation vouchers apply when an eligible employee requests support for commuting, subject to statutory employee participation. Meal or food benefits are not universal CLT entitlements, but collective agreements or company policy often require or provide them. Profit sharing also depends on a qualifying negotiated arrangement rather than a fixed universal percentage.
Remote Work Protections
Brazilian law requires written telework terms. The agreement should cover the work arrangement and address equipment, infrastructure, expenses, schedule or production model, information security, and any move back to on-site work.
Employers must give health and safety instructions, and employees sign an acknowledgement of those instructions. The collective rules for the establishment where the employee is assigned generally apply, even when the person works remotely from another location.
Employer Payroll Contributions in Brazil
Brazil does not have one employer-cost percentage that applies to every hire. The result depends on the employer’s activity, tax regime, FPAS code, occupational-risk classification, Accident Prevention Factor, and any special payroll regime.
Total Employer Cost Breakdown
Total Employer Cost
~34.8 – 36.8% of gross salary
The Social Security Funding Law establishes the general 20% employer contribution and risk-based occupational charges. The FGTS law establishes the 8% monthly deposit for standard employees.
This table is not a statutory flat rate. Simples Nacional treatment, payroll-replacement regimes, FAP adjustments, sector rules, and third-party classifications can change the calculation. Budget the 13th salary, paid vacation, the one-third vacation premium, holidays, benefits, and termination costs separately.
Cost of Hiring Remote Professionals in Brazil
The total cost of hiring includes base salary, payroll charges, statutory benefit accruals, paid leave, equipment, recruitment, and any EOR, staffing, or payroll-provider fees.
The following figures are annual USD planning estimates from the current Wow Remote Teams Brazil dataset. Confirm the data period, sample, seniority definitions, employment model, and exchange-rate method before publication.
(Annual)
(Annual)
Additional Hiring Costs in Brazil
Employers should also budget for:
- Employer social-security and occupational-risk charges
- Monthly FGTS deposits
- 13th salary
- Vacation and the one-third vacation premium
- Paid holidays and family leave
- Collective-agreement benefits and salary floors
- Occupational health and safety administration
- Equipment, software, and remote-work support
- Recruitment and permitted background checks
- Payroll, staffing, or EOR fees
- Currency conversion and compensation reviews
- Termination notice and FGTS exposure
Salary Comparison: Brazil vs. the United States
One of the biggest advantages of hiring in Brazil is the significant cost savings compared to the United States, without sacrificing talent quality. The table below shows average annual salaries for common remote roles.
What This Means for Your Budget
On average, hiring in Brazil can save your company 60% to 75% on salary costs compared to equivalent roles in the United States.
The figures show lower base-salary benchmarks for these selected roles. They do not represent total employer savings or guarantee candidates with equivalent experience at either salary.
Add Brazilian payroll charges, the 13th salary, vacation, benefits, equipment, currency costs, provider fees, and termination exposure before comparing the full cost with a U.S. employee.
How to Pay Employees and Contractors in Brazil
Brazilian payroll should calculate gross-to-net compensation, employee INSS, income-tax withholding, employer charges, FGTS, benefit accruals, and any collective deductions. Monthly salary is generally due by the fifth business day of the following month.
Local Payroll
A registered Brazilian employer can process payroll in BRL, submit employment and payroll events through eSocial, maintain records, issue the payslip, pay the required charges, and transfer net compensation to the employee.
The employer should align payroll with DCTFWeb, FGTS Digital, tax, and social-security deadlines. Corrections should flow through the same reporting systems rather than through informal side payments.
Employer of Record or Local Employment Partner
A properly structured provider can administer pay and employment obligations for workers employed through its Brazilian entity. Confirm whether its quote includes payroll, eSocial, INSS, FGTS, benefits, occupational health, collective-agreement administration, leave, claims support, and termination.
Independent Contractor Payment
Independent contractors invoice for autonomous services and handle their own tax obligations according to their status. The payment schedule, currency, conversion method, withholding, and documentation should match the commercial agreement and the actual independent relationship.
Important
Employee salary should be stipulated, recorded, and processed in Brazilian reais. If an offer uses a U.S. dollar reference, the employment agreement and payroll process should define the BRL amount or conversion method, exchange-rate source, conversion date, deductions, and payslip reporting.
Do not promise a fixed net dollar amount before a Brazilian payroll professional reviews the tax and exchange-rate treatment.
EOR and Employee Onboarding Checklist for Brazil
A compliant onboarding process should connect the employment agreement, worker registration, payroll, occupational health, collective benefits, remote-work terms, and the employee’s first-month objectives.
Before the Start Date
- Confirm the employing entity and legal hiring model
- Identify the applicable collective bargaining agreement
- Prepare a locally reviewed Portuguese or bilingual agreement
- Complete necessary and permitted identity, reference, and background checks
- Complete the admission occupational medical examination when required
- Record the employee through CTPS Digital and eSocial before the legal deadline
- Configure payroll, INSS, FGTS, withholding, and benefit accruals
- Enroll the employee in required collective or company benefits
- Document remote location, schedule, equipment, expenses, and security
On the First Day
- Provide equipment and system access
- Review responsibilities and performance expectations
- Explain working hours, time recording, overtime approval, and time off
- Confirm payroll dates, payslip access, and benefits
- Confirm who handles HR, payroll, and EOR questions
During the First Week
- Introduce the employee to the team
- Assign initial work and role-specific training
- Confirm communication channels and U.S. overlap hours
- Review confidentiality, data-handling, and incident procedures
- Test access to engineering or business systems
- Schedule the first performance check-in
Ongoing Administration
- Process payroll and filings on time
- Maintain eSocial, FGTS, leave, and occupational-health records
- Track vacation and national, state, and municipal holidays
- Pay the 13th salary installments by their deadlines
- Apply collective salary and benefit updates
- Review equipment, expenses, and remote-work terms
- Maintain records needed for notice and termination calculations
Recent Employment and Payroll Changes in Brazil
Brazil changed the national minimum wage, paternity-leave framework, and occupational-risk requirements during 2026. Employers should update budgets, policies, and onboarding documents before making an offer.
National Minimum Wage Increased to R$1,621
Decree No. 12,797 set the national minimum wage at R$1,621 per month from January 1, 2026. State wage floors and collective agreements can set higher minimums for a position.
Psychosocial Risks Added to Occupational Risk Management
The updated NR-1 occupational-safety framework requires employers to address work-related psychosocial risk factors through their risk-management process from May 26, 2026.
Remote employers should assess workload, working-time practices, harassment risks, communication, role clarity, and isolation alongside physical and ergonomic risks. The required controls depend on the actual work and risk assessment.
New Paternity-Leave Framework Enacted
Brazil enacted a phased paternity-leave law in March 2026. It takes effect on January 1, 2027, beginning with 10 days and later moving to 15 days and a conditional 20-day stage.
Employers should prepare payroll and leave policies during 2026 while continuing to apply the current five-day general rule.controls depend on the actual work and risk assessment.
Equal-Pay Reporting Remains an Active Obligation
Brazil’s Equal Pay Law requires qualifying private employers with 100 or more employees to publish semiannual salary-transparency reports and address identified inequality.
Confirm each reporting cycle, data-submission window, and remediation duty with local counsel.
Short-Term Visa Simplification
Brazil simplified rules for short-term technical and business work, allowing certain foreign professionals to work temporarily under visitor visa categories.
eSocial Payroll Enforcement Expansion
Labor authorities increased payroll and tax compliance audits through the eSocial digital reporting platform.
Equal Pay Transparency Law
Companies with 100+ employees must publish bi-annual gender pay equity reports and implement corrective action plans when disparities are identified.
Talent Hubs and Candidate Sources in Brazil
Brazil’s professional workforce extends across several regional markets. Choose the recruiting location and platform based on the role, specialization, salary, English requirement, time zone, and collective agreement.
Top Hiring Cities
Top Hub
São Paulo
Large professional market across software, fintech, finance, product, marketing, sales, design, customer operations, and corporate services.
Rising
Belo Horizonte
Technology and business-services market with candidates across software development, data, engineering, mining technology, finance, and operations.
Growing
Florianópolis
Technology market supporting software, SaaS, product, design, data, customer success, and digital services.
Emerging
Recife
Regional technology and services center with candidates across software, information security, design, customer operations, and creative work.
Established
Curitiba
Professional market covering software, engineering, logistics, finance, manufacturing support, marketing, and shared services.
Niche
Porto Alegre
Talent market across technology, product, finance, design, marketing, customer operations, and professional services.
Popular Job Boards
The most effective platforms for finding candidates in Brazil include:
- Wow Remote Teams - Specialized recruitment and EOR service for hiring vetted remote talent across Latin America, including Brazil.
- Gupy - Brazil’s leading recruitment and ATS platform.
- Trampos.co - Popular niche platform for tech and creative roles.
- LinkedIn - Widely used for professional roles
Practical Considerations for Hiring Remote Workers and Engineers in Brazil
Remote hiring in Brazil should account for Portuguese-language employment administration, CLT classification, multiple time zones, collective agreements, information security, and the provider’s ability to support the employee after onboarding.
Communication and English Requirements
Define the English level required for meetings, client contact, writing, documentation, and incident response. Evaluate those skills in a job-related setting. Keep employee-facing employment and payroll communication available in Portuguese.
Working Hours and Availability
Document the employee’s local time zone, schedule, breaks, time-recording method, U.S. overlap, overtime approval, weekend coverage, and right to disconnect. Do not treat telework as an automatic exemption from working-time controls.
Role-Specific Engineering Screening
For software engineers, identify the required stack, system scale, production responsibilities, security needs, and communication level before sourcing. Use relevant work samples, technical interviews, code review, architecture discussion, and debugging scenarios.
Wow Remote Teams’ Technology and Development recruitment service can assess Brazilian candidates against a defined engineering brief. The employment or EOR decision should remain separate from the technical hiring decision.
Meetings & Etiquette
Small talk is common before meetings. Punctuality matters, though slight delays are socially accepted.
Hire Remote Talent in Brazil
Tell us the role, required experience, tools, location, schedule, English level, and preferred hiring model. Wow Remote Teams will recruit and evaluate Brazilian candidates against your criteria and present a focused shortlist.
Frequently Asked Questions
Can a foreign company hire employees in Brazil without a local entity?
Yes. A foreign company can use a properly structured employer of record or local employment provider instead of immediately establishing a Brazilian entity. It can also engage contractors for genuinely autonomous services.
Confirm the local employer, collective agreement, payroll responsibility, worker direction, liability, tax exposure, and termination process before onboarding.
What is the minimum wage in Brazil?
Brazil’s 2026 national minimum wage is R$1,621 per month. A state wage floor or collective bargaining agreement may set a higher minimum for the employee’s location or category.
The legal minimum is a salary floor, not a market benchmark for experienced bilingual or specialized remote professionals.
Do employees in Brazil receive a 13th-month salary?
Yes. Employees receive a mandatory 13th salary based on one-twelfth of December remuneration for each qualifying month worked. The employer normally pays it in two installments, with the final installment due by December 20.
How long does it take to hire an employee in Brazil?
Wow Remote Teams targets a role-matched shortlist within three days. Candidate interviews can begin within 72 hours for some searches, while specialized positions may require up to 14 days.
Selection, contract preparation, occupational health, employee registration, payroll setup, and onboarding follow separate timelines. Total time depends on the role, hiring model, documents, and checks.
What employer costs apply when hiring in Brazil?
A general-regime planning model can include 20% employer social security, 8% FGTS, 1% to 3% occupational accident contributions before FAP adjustment, and variable third-party charges. That can produce an illustrative 34.8% to 36.8% range.
Actual rates depend on the employer and tax regime. The 13th salary, vacation and its one-third premium, holidays, benefits, equipment, provider fees, and termination costs require separate budgeting.
What is the difference between a CLT employee and a PJ contractor in Brazil?
A CLT employee provides personal, paid, ongoing work under the employer’s direction and receives payroll, FGTS, social-security coverage, leave, benefits, and termination protections.
A genuine PJ contractor controls how independent services are performed, invoices through a business, and manages its tax obligations. Forming a company or signing a service agreement does not override an employee-like working relationship.
How should a company choose an EOR for software engineers in Brazil?
Verify the provider’s Brazilian employing entity, CLT contracts, eSocial and payroll process, FGTS and INSS administration, collective agreement handling, occupational health support, remote-work documentation, intellectual-property terms, employee service, and termination process.
Compare itemized quotes using the same salary, benefits, exchange rate, setup, and exit assumptions. Evaluate engineering recruitment quality separately through stack-specific screening and work-based assessment.
What are Brazil’s notice and severance rules?
Dismissal without cause generally requires notice of 30 to 90 days, salary balance, proportional 13th salary, accrued and proportional vacation plus one-third, FGTS release, and a 40% FGTS indemnity.
Resignation, mutual termination, fixed-term expiry, and termination for cause follow different rules. Obtain a case-specific calculation before ending employment.