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If you are interested in hiring a remote team in Brazil, or even just individual remote employees in Brazil, then you have come to the right place!
Rivermate is an Employer of Record (EOR) that offers Brazil payroll solutions. As a Brazil payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Brazil. We are confident Rivermate’s payroll solutions Brazil will help you grow as a business—because now, you won’t have to worry about your payroll solutions Brazil. We take care of everything payroll!
With Rivermate, you can run Brazil payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.
Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!
Before you can set up payroll in Brazil, you must first understand the various tax rates. All payroll transactions must be conducted in Brazilian reals (BRL).
You will need to open bank accounts in the country if you do not outsource your payroll. Prepare to invest significant time, money, and travel to Brazil to set everything up and officially hire employees.
Brazil is well-known for its high taxation, which affects both employers and employees. As an employer, you contribute approximately 80% of your employee's total salary to social security or statutory benefits. Hiring someone for $100,000 per year in the United States, for example, would cost around $180,000 in Brazil after taxes.
Employers must also pay a corporate income tax of 15% of taxable profits. If your annual income exceeds BRL 240,000, you must pay an additional 10% surtax. You will also be required to contribute to a Severance Indemnity Fund known as Fundo de Garantia por Tempo de Servico through your pension plan (FGTS).
Companies that wish to expand their operations globally have four different payroll options in Brazil. These payroll options are:
1. Internal Payroll. This payroll option is applicable for already established companies in Brazil. It includes devoting an entire Human Resources staff to running the company's payroll procedures.
2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.
Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.
3. Brazil payroll outsourcing: Outsourcing your payroll to an Employer of Record in Brazil, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!
Managing payroll in Brazil entails keeping track of all your employees' financial information while also adhering to the country's payroll and employment laws.
Statutory payroll compliance in Brazil entails paying your employees' salaries and benefits on a regular basis, as well as ensuring that taxes and contributions to local and federal governments are also deposited on a regular basis.
Companies that have a business presence in Brazil have different ways of managing payroll. However, most of the options you have for running payroll in Brazil are either expensive or require establishing a subsidiary in Brazil. The cheapest, most efficient, and most reliable payroll processing system in Brazil is by outsourcing payroll to Employers of Record (EOR) in Brazil. Rivermate is one of those Employers of Record.
At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Brazil. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Brazil. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.
Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Brazil.
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.
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.
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.
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.