How to hire and pay EMPLOYEES IN

Brazil

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Before hiring

EMPLOYEES IN
Brazil

Before hiring employees in Brazil, there are some key things you’ll need to know. Firstly, the notice period in Brazil is typically 30 days. It’s longer for employees who have been employed for over a year, but it can be halved if the termination is under mutual consent.

It’s also important for employers to understand Brazil’s complex paid holiday structure, and the 13th month salary bonus that is paid in two halves during the year.

We know keeping track of all this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform. 

Get an overview of what you need to know when hiring in Brazil below.

At a Glance

CURRENCY

BRL

OFFICIAL LANGUAGE

PORTUGUESE

PAYROLL FREQUENCY

MONTHLY, BI-WEEKLY

PUBLIC HOLIDAYS

13

(based on region;
see here
)

EMPLOYER TAXES

35-40%

of gross salary

13th / 14th SALARY

Brazilian employees receive a 13th month bonus (half paid in November and half paid in December) and a holiday bonus (a third of a month’s salary) when holiday is taken).

Good to know

  • Ending employment in Brazil takes time and is expensive. Notice periods start at 30 days, and termination costs include severance payment and a stiff penalty for any dismissal not for cause.
  • A holiday of 30 days is granted to employees after 12 months of working. This holiday must be taken in the following 12 months. Employees in Brazil also receive a holiday bonus (aka vacation premium) that is equal to one-third of a month's salary. Additionally, there is a mandatory 13th month salary bonus that’s equal to one month of pay and is paid in two equal parts: one half by November 30th and the other half by December 20th.
  • The notice period in Brazil is typically 30 days. But it’s longer for employees employed for over a year. It can be halved if the termination is under mutual consent.

Employment in

Brazil

Working hours and overtime

A workweek in Brazil is eight hours per day or 44 hours per week.

Any hours worked in excess of eight per day is considered overtime and is paid at the rate of 150% of the regular pay. Work on a holiday is paid at the rate of 200% of the regular pay.

Overtime is limited to up to two hours per day.

The positions that are exempt from the overtime requirement are those who occupy a position of trust (e.g. management, supervisors, anyone who has a high-level position in a company) and those who work outside of an office (e.g. field sales reps, employees working from home).

Employment contracts
Probationary period

In Brazil, the probation period is 45 days, but can be extended to 90 days.

Pensions
Notice period

In Brazil, the notice period for dismissals is 30 days for employees in their first year, plus three additional days for each additional year worked (up to a maximum of 60 additional days).

For resignations, the notice period is 30 days. 

The notice period is halved if the termination is under mutual consent.

IP protection and non-compete agreements

Non-compete agreements in Brazil can be no longer than two years, and must spell out the scope and terms clearly in writing. Such agreements can be enforced by an employer in return for the payment of a fair indemnification to the employee, which can vary between cases.

Employment cost calculator

Holidays

01 Jan

New Year's Day

07 Sep

Independence Day

15 Feb

Carnival

12 Oct

Our Lady of Aparecida

16 Feb

Carnival

02 Nov

All Souls' Day

02 Apr

Good Friday

15 Nov

Republic Day

21 Apr

Tiradentes Day

20 Nov

Black Consciousness Day

01 May

Labour Day

25 Dec

Christmas Day

03 Jun

Corpus Christi

01 Jan

New Year's Day

15 Feb

Carnival

16 Feb

Carnival

02 Apr

Good Friday

21 Apr

Tiradentes Day

01 May

Labour Day

03 Jun

Corpus Christi

07 Sep

Independence Day

12 Oct

Our Lady of Aparecida

02 Nov

All Souls' Day

15 Nov

Republic Day

20 Nov

Black Consciousness Day

25 Dec

Christmas Day

Employer tax

The total social contributions for employers in Brazil are between 28% and 35%. This includes social security, severance indemnity, and other common contributions like life Insurance, labour accident insurance, meal allowance, medical and dental, and social assistance.

Individual tax

Employees in Denmark are taxed between 0% and 27.5% depending on their income bracket. Employees also pay 14% in social security contributions.

Termination of employment

There is no mandatory severance pay in Brazil, however an employee must receive pro rata amounts of holiday pay, 13th month pay, and vacation pay. An employer can also provide pay in lieu of notice.

Each month, employers must contribute 8% of an employee's salary to the Severance Fund (FGTS), which employees may access upon dismissal. However, when terminating an employee without just cause, an employer must also pay a penalty into the fund in the amount of 40% of the balance in the employee's FTGS account. When the separation is mutually agreed, the employer still must pay a 20% penalty.

Start hiring employees in

Brazil

Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast. 

We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities. 

With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.

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wherever they work in the world.

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