Brazil

Employer of Record (EOR) in Brazil

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Brazil . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Brazil.

Employer of Record people
A coin
Currency
Brazilian Real
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Capital
Brasileia
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Region
Americas
Megaphone
Language
Portuguese
Hire remote employees
Population
212559417
A pile of gold
GDP
$2.054 trillion
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GDP growth
0.0098
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Ease of doing business
59.1
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World GDP share
0.0254

1. Grow your team in Brazil with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Brazil , particularly if you don't have established local relationships. You can hire employees in Brazil effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Brazil is the biggest nation in both South America and Latin America, formally known as the Federative Republic of Brazil. Brazil is the world's fifth-largest nation by size and sixth-most populated, with 8.5 million square kilometers (3,300,000 square miles) and over 211 million inhabitants. Brasilia is the capital, while So Paulo is its most populated city. The merger of the 26 states and the Federal District constitutes the federation. It is the biggest country in the Americas to have Portuguese as an official language; it is also one of the most cosmopolitan and ethnically varied countries, owing to nearly a century of huge immigration from all over the globe; and it is the most populated Roman Catholic-majority country.

Brazil has a 7,491-kilometer coastline that is bounded on the east by the Atlantic Ocean (4,655 mi). Except for Ecuador and Chile, it borders every other country and territory in South America and accounts for 47.3 percent of the continent's land area. Its Amazon basin has a large tropical forest that is home to various fauna, biological systems, and enormous natural resources spread across several protected areas. Brazil is one of 17 megadiverse nations, and its unique natural legacy is the topic of major worldwide attention since environmental deterioration via processes such as deforestation has direct consequences for global concerns such as climate change and biodiversity loss.

Prior to the arrival of explorer Pedro Alvares Cabral in 1500, who claimed the country for the Portuguese Empire, Brazil was populated by a number of tribal groups. Brazil remained a Portuguese territory until 1808 when the empire's capital was moved from Lisbon to Rio de Janeiro. When the United Kingdom of Portugal, Brazil, and the Algarves was formed in 1815, the colony was promoted to the status of a kingdom. The Empire of Brazil, a unified state administered by a constitutional monarchy and a parliamentary system, gained independence in 1822. The construction of a bicameral legislature, presently known as the National Congress, resulted from the approval of the first constitution in 1824. Following a military coup, the nation became a presidential republic in 1889. An authoritarian military junta took control in 1964 and reigned until 1985 when civilian government was restored. Brazil's current constitution, drafted in 1988, establishes the country as a democratic federal republic. The nation ranks twelfth in the world in terms of the number of UNESCO World Heritage Sites due to its rich culture and history.

Brazil is a regional and intermediate power, as well as a rising power. It is considered an advanced developing economy, with the world's twelfth biggest nominal GDP and eighth-largest PPP GDP, the largest in Latin America. Brazil, classified by the World Bank as an upper-middle-income economy and a newly industrialized nation, has the highest proportion of global wealth in South America and is one of the world's main breadbaskets, having been the top producer of coffee for the previous 150 years. However, there is still significant corruption, crime, and socioeconomic inequality in the nation. Brazil is a founding member of the UN, the G20, BRICS, Mercosul, the Organization of American States, the Organization of Ibero-American States, and the Community of Portuguese Language Countries.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Brazil is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Within 12 months of employment, an employee is entitled to 30 days of paid annual leave. The leave must be taken within the next twelve months.

Leave will be taken three times, with one of the intervals being at least 14 days long and the other two being at least 5 days long.

Two days before a holiday or weekend, annual leave cannot be obtained. Employees will trade in 1/3 of their yearly leave in exchange for a holiday bonus.

Public holidays

There are 13 national holidays in Brazil although some regions in the country may also impose local holidays.

Sick days

The employer bills the employee's entire wage for the first 15 days of sickness. Social protection begins to pay for the leave on the 16th day (up to 6,101 BRL)

Maternity leave

Female employers are entitled to 120 days of paid maternity leave, which can be extended for up to four weeks if medically necessary (two weeks prior and two weeks after birth). The employer must pay 100 percent of the daily salary during maternity leave; however, the employer may demand payment back via social security deductions.

Maternity leave will be stretched to a period of 180 days if the contractor is registered in the government programme (Empresea Cidada).

Paternity leave

Paternity leave is compensated for five days for fathers. The pay is equal to 100 percent of daily earnings, and the employer is responsible for paying it. Paternity leave will be extended to 20 days if the employer is registered in the government programme (Empresa Cidada).

Parental leave

Brazil has no provisions in the law regarding parental leave besides the mentioned maternity and paternity leaves.

Other leave

Leave for Marriage - 3 days

Bereavement Leave (Death of a parent, fetus, or partner) - 2 days

5. Employment termination

There is no information about employment information for this country.

Termination process

Employment contracts may be canceled at any moment with the required notice.

Employees who report to union representatives, members of the Internal Committee for Accident Prevention (CIPA), pregnant employees, employees with work-related injuries, and employees covered by specific collective bargaining agreements are excluded from this.

Termination notices must be in writing.

Notice period

Notice is required only in certain cases. Employers commence the process of severing the employment relationship. After one year of work, a 30-day notice period will apply. For employees with more than one year of service, the notice period will be 30 days plus three additional days for each year worked, up to a maximum of 60 additional days. If the employee initiates the termination, he or she is required to give 30 days' notice. If the employee is terminated during his or her probationary period, he or she may request an earlier release than the 30-day period. If the termination is amicable, the notice period is reduced.

Probation period

The probation period in Brazil is 45 days but can be extended to 90 days.

Severance pay

Severance pay varies according to the manner in which the employment agreement is terminated. When severance is necessary, the employee is entitled to one month's pay for each year worked. Employers contribute 8% to the Severance Fund (FGTS), and when an employee is let go, 40% of the remaining balance is paid as a termination penalty. When mutual consent is obtained, 20% of the balance is paid out.

6. Working hours

There is no information about the working hours for this country.

General working schedule

The workweek in Brazil can last up to 44 hours, with an ideal of eight hours per day (plus one hour for lunch) during the week and four hours on Saturday. Certain collective bargaining agreements or collective bargaining agreements may provide for different work hours.

Between two consecutive work days, employees are entitled to a minimum of 11 hours of rest. Additionally, each employee is entitled to 24 consecutive hours of rest per week, including Sunday. Unless an exception applies, employers cannot require employees to work on Sundays or public holidays. For shift work, night work, and other unusual circumstances, special rules apply.

Overtime

Overtime is restricted to a maximum of two hours per day. Overtime is defined as any hour worked in excess of eight hours in a single day and is compensated at a rate of 150 percent of regular pay. Additionally, work performed on a holiday is compensated at a rate of 200 percent of the regular rate.

7. Minimum wage

There is no information about the minimum wage for this country.

According to Brazil's compensation laws, the minimum wage will be 1,039 BRL in 2020. In general, wages in Brazil are paid on a monthly basis. Although annual increases are not required, they are common and are typically negotiated as part of a collective bargaining agreement. Additionally, employees receive a 13th-month salary bonus. The bonus is payable in two installments after 15 days of work. Additional allowances, such as travel, may be included in an employee's compensation package.

8. Employee benefits

There is no information about the employee benefits for this country.

The Brazilian government provides health insurance, however private health insurance is becoming more widespread as an employee benefit.

In Brazil, most perks are mandated by law, and there are very few negotiating grounds on benefits with the candidate. In addition to the advantages detailed in the preceding sections, there are significant levies for different social charges that cover medical and other social welfare programs.

Basic monthly benefits for local employees are mandatory and include a lunch voucher, transportation voucher, life insurance, dental insurance, and private medical insurance.

Another often granted benefit is day care help.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Companies in Brazil are subject to a corporate tax rate of 34 percent.

Individual income tax

In Brazil, taxes affecting equity are collected insignificantly, while income taxes have stayed practically unchanged as a percentage of overall collections, rising from 38.80 percent on average to 41.14 percent.

VAT, GST and sales tax

The highest rate for the value-added tax (VAT) or goods and sales tax (GST) in Botswana is set at 50 percent. The lowest VAT or GST rate is set at 39 percent.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Foreigners intending to work in Brazil will need a residency permit (temporary or permanent) as well as a work visa (Autorizaçao de Trabalho). In Brazil, the potential employer must apply for a work permit at the Brazilian Ministry of Labour and Employment (Ministério do Trabalho e Emprego) by submitting the job contract and the necessary papers. Once the application has been approved, an application for a work permit must be sent to the Brazilian embassy or consulate in the potential employee's home country.

The kind of work visa necessary for both the Brazilian residence and work permits is determined by the type of job activity engaged in the position in Brazil. Different vocations and credentials will need different types of work visas, both temporary and permanent.

The most often requested visa is a temporary work visa (Visto Temporario V), which is originally granted for two years (although a second two-year extension may be possible). If the employer wishes, after four years with the same firm, they may assist the employee in filing for a permanent work visa.

Some applicants can apply for a permanent work visa (Visto Permanente), which is granted to foreigners who are eligible for permanent residency in Brazil. Typically, this applies to professional researchers or scientists (for efforts lasting more than two years), as well as investors (provided the investment sum exceeds the reported required amount by the Brazilian Ministry of Labour and Employment).

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Name of the employer and employee

Specific duties to be performed

Salary, method of payment and payment intervals

Leave entitlements

Start date and end date (if for a fixed term)

With Rivermate being your Employer of Record (EoR) in Brazil, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Brazilian Real (BRL)

13.Opening a subsidiary in Brazil

There is no information about the working hours for this country.

How to set up a subsidiary

When creating a Brazilian subsidiary, you may choose from nine different company structures. The most prevalent are Sociedade Anonima, which is equivalent to a US corporation, and Sociedade Limitada, which is akin to a limited liability company. Once you've decided on establishing a subsidiary in Brazil, you must:

1. Save the articles of incorporation.

2. Become a member of the Board of Trade.

3. Obtain a tax identification number

4. Create a Brazilian visa and bank account for yourself.

5. Submit an application for a business license to operate inside a municipality.

6. To pay taxes in Brazil, you must first register with the Inscricao Estadual.

7. In addition, newly created firms should apply for authority to issue Notas Fiscais (AIDF), which enables you to print taxable papers, utilize and produce security forms, and perform other things.

Even if you do not have any workers, you must register with Brazil's Social Security Institution (INSS) within 30 days of starting operations. A business administrator should contact a social security office to register the firm with the CNPJ — a Brazilian corporate identification number.

Subsidiary laws

According to Brazilian subsidiary rules, a corporation must have at least two shareholders, or "quotaholders," in order to become a Sociedade Limitada. You may also form a Limitada via the use of Articles of Association — locally known as Contrato Social — by meeting regional registration criteria.

Whether or whether they have a quota, at least one person in Brazil must administer the Limitada. This individual should be appointed by quotaholders under the Articles of Association or similar corporate instrument.

You must also provide yearly accounts that have been authorized by quotaholders at an Annual Quotaholders' Meeting. The minutes of such meeting must be publicly recorded at Brazil's Commercial Registry.

13. Why choose Rivermate as your Employer of Record / PEO in Brazil

Establishing an entity in Brazil to hire a team takes time, money, and effort. The labor law in Brazil has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Brazil simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Brazil give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Brazil via our Employer of Record (EOR) / PEO solution.

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