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Global Expansion Guide

Brazil

Manage and pay your employees easily with BIPO in Brazil and 170+ other markets. Build your international teams today with our global Employer of Record service!
employment guide_currency

Currency

Brazilian Real (BRL)

employment guide_language

Language

Portuguese

employment guide_capital

Capital

Brasília

Employer of Record Brazil

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Other Regulations

Probationary Period

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Brazil

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  • Global Hiring Guide
  • Brazil

Employer of Record Brazil

Embark on your business expansion in Brazil with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Brazilian market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

Contract Content

Employers and employees should sign labor contracts specifying salary, job type, working hours, etc.

Individual Labour Contracts and Collective Agreements

  • Individual labor contracts are directly signed between employer and worker; collective bargaining agreements are signed by unions representing employees and employers.

  • If a collective bargaining agreement covers the following matters, it prevails over labour law:

    • Working hours
    • Annual scheduling
    • Rest periods and days off
    • Employee representation at the workplace
    • Holiday substitutions specified in Article 611-A of the new Labour Law.

Effective 11 November 2017, the new Brazil Labour Law provides the following regarding contracts:

  • Contract Types by Population

    • According to CLT, wages must be registered by type:

      • Monthly (30 days)
      • Hourly (based on actual hours worked in the month)
      • Commission (with a minimum wage guarantee)
      • Task-based (based on employee output)
    • Minor Employees: Hiring employees aged 14-18 still in school. Unlike CLT contracts, they work 6 hours daily. FGTS contribution rate is 2%.
    • Interns: Applies to enrolled students with internships matching their studies. Not considered employment under CLT. No INSS or FGTS contributions required. Income above the tax-exempt threshold is subject to income tax withholding (IRRF). Contracts must be signed by intern, employer, and educational institutions.

  • Director Contracts:

    • Director with FGTS: Social security (INSS) and income tax (IRRF) are deducted, FGTS must be paid.
    • Director without FGTS: Social security (INSS) and income tax (IRRF) are deducted, FGTS not required.

  • Contract Types by Duration

    • Temporary Contract: Short-term labor services provided by individuals to temporarily replace regular employees or meet short-term workload increases. The employer decides the labor period, up to 180 days, extendable once without exceeding the original term.
    • Fixed-term Contract: A labour contract with a predetermined start and end date, usually valid for up to two years. After expiry, the employer must wait six months before signing a new fixed-term contract with the same employee; otherwise, it is considered an indefinite contract.
    • Indefinite Contract: The most common contract type, valid until either employer or employee terminates.

Statutory Contributions

ItemDetailsEmployer’s ContributionEmployee’s Contribution
National Institute of Social SecurityProvides workers with pension, education fund, workers’ compensation, unemployment insurance, and other benefit programs20% or 22.5% (depending on industry risk and conditions)7.5% – 14%
Guarantee Fund for Length of ServicePension/retirement fund and severance compensation8% of employee’s total earnings 
RAT Work Accident InsuranceWork injury protection1% – 3% of employee’s total earnings 
SystemS Learning Funds (SENAI, SESC, SESI, SENAC, SEBRAE, etc.)National industrial learning services supporting social assistance and vocational training5.8% of employee’s total earnings 
13th Month SalaryStatutoryBased on employees’ total monthly earnings for the year, including bonuses, overtime work, and commissions 
Vacation AllowanceStatutory1/3 monthly salary 
 Total Approximate ContributionApprox. 47%Approx. 7.5% – 14%

Minimum Wage

The minimum wage in Brazil for 2025 is 1,518 BRL per month.

Public Holidays

Holiday Name Date
New Year’s Day 1 January 2025
Carnival 3 March 2025
Carnival 4 March 2025
Good Friday 18 April 2025
Tiradentes Day 21 April 2025
Labour Day / Dia do Trabalho 1 May 2025
Corpus Christi 19 June 2025
Independence Day 9 July 2025
Our Lady of Aparecida/Nossa Senhora Aparecida 12 October 2025
All Souls’ Day 2 November 2025
Republic Day/Proclamação da República 15 November 2025
Black Consciousness Day 20 November 2025
Christmas Day 25 December 2025

Working Hours

Normal Working Hours

  • According to Brazil CLT, the maximum working hours for employees are 44 hours per week or 8 hours per day, with a monthly maximum of 220 hours.
  • Working hours may vary due to negotiations between employer and employee or collective agreements. For example, many collective agreements stipulate less than 44 hours per week; certain categories of workers (e.g., shift workers and bank employees) may work only 6 hours daily and 36 hours weekly.
  • Workers who work no more than 25 hours per week are considered part-time.
  • According to Law No. 10,243 dated June 6, 2001 (Article 62), employees working outside the employer’s premises and those in managerial positions are exempt from working hour limits.
  • Under Economic Law No. 13,874 of 2019, companies with more than 20 employees must record employees’ clock-in and clock-out times manually, mechanically (e.g., time clocks), or electronically, following instructions from the Ministry of Labor and Social Security’s special secretariat.

Rest Time

  • According to Brazilian law, employees who work more than 6 hours per workday are entitled to a rest period of at least 1 hour and up to 2 hours. If the employer fails to provide the rest period, they must pay the employee an additional 50% of their regular hourly wage for the scheduled rest hours. For employees working between 4 and 6 hours per workday, the employer must provide a rest period of no less than 15 minutes.
  • Employees must be given 11 hours of rest between two workdays. If the daily working hours are extended to 12 hours, a continuous rest period of 36 hours must immediately follow.

Night Work

  • Night shift is defined as work performed between 10:00 PM and 5:00 AM the next day. Minors are prohibited from working night shifts.
  • Calculation of night work hours: every 52 minutes and 30 seconds of night work counts as 1 hour, meaning 7 hours of night work equals 8 hours of daytime work.

Days Off

Employees are entitled to 24 hours of paid rest per week, usually on Sundays.

Work Hours Adjustment

  • Under the CLT, companies may negotiate working hour adjustments with employees based on production and business needs. This flexibility applies to all labor contract types and requires individual or collective agreement consent.
  • For example, a company may reduce normal working hours during the low season without reducing wages, and schedule overtime for employees during the peak season to compensate for the remaining hours. The adjustment period must not exceed 120 days, unless otherwise stipulated by labor-management agreements.
  • If this system starts during the peak season, the company may extend employees’ working hours by up to 2 hours per day. During this period, the company does not pay overtime premiums but compensates for the extra hours with subsequent rest time. Working hours can be adjusted according to labor-management agreements; however, daily working hours must not exceed 10 hours, and the total weekly working hours within the 120-day period must not exceed the legal maximum.

Overtime

  • Employees can work a maximum of 2 hours of overtime per day. In emergency situations, if the employer registers a special agreement with the Ministry of Labor and Employment, the overtime duration may exceed this limit.
  • Employers must pay employees overtime compensation. For weekday overtime (Monday to Saturday), at least 50% extra pay is required; for overtime on weekends or statutory holidays, at least 100% extra pay (i.e., double the hourly wage) must be paid. During overtime worked between 10:00 PM and 5:00 AM (night shift), an additional 20%-night shift allowance applies, which is added before calculating the overtime pay.

Other Regulations

Labour Registration

All paid employees in Brazil must be registered within 5 working days after hiring. The “Work and Social Welfare Card” (CTPS) and the company’s “Employee Register” are issued and managed by the Ministry of Labor or authorized agencies. Employers must record salary, working conditions, etc., in these documents. This registration is the most important employment proof. Employees must be registered with the Ministry to obtain the CTPS, which the employer is obliged to sign and keep updated.

Equal Pay for Equal Work

Under Brazilian labour law, employees have the right to claim equal pay when:

  • Job functions are identical, work location is the same, and length of service difference on the same position does not exceed 2 years;
  • Overall length of service difference within the company does not exceed 4 years. Employers face fines, back pay, and labor inspection if gender-based pay discrimination occurs.

Workers Representative Committee

Under the CLT, companies with more than 200 employees may establish a workers’ committee. Employee representatives elected to this committee are guaranteed job stability for at least one year after their term ends.

Union Contributions

Union fees are not mandatory; employees may decide voluntarily whether to contribute to the union.

Employer Obligations on Payroll and Employee Records

Employers must update employee details in work and social insurance cards and upload relevant employment information in the E-Social system.

Probationary Period

The maximum probation period in Brazil is 90 days. It can be agreed upon once or renewed, provided the total probation period does not exceed 90 days. For example, an initial 45-day probation can be extended by another 45 days, or a 30-day probation can be renewed for 60 days.

Leave

Statutory leaves in Brazil include:

Type Applicable to Details
Paid Annual Leave All employees 30 days, with vacation allowance
Maternity Leave Female employees 120 days, extendable up to 180 days; employer pays initially and is reimbursed by INSS
Paid Sick Leave All employees 15 days paid by employer; after 15 days, paid by INSS
Paternity Leave Male employees 5 days, extendable up to 20 days
Bereavement Leave All employees 2 days
Marriage Leave All employees 3 – 5 days

Termination and Compensation

Notice Period

Notice must be given 30 days in advance, with an additional 3 days for each year of service, up to a maximum of 90 days.

Compensation

  • Without Cause Termination

    • If terminated without cause, the employer must provide the notice period or pay in lieu of notice. The dismissal must be in writing with the termination date specified. The employer must pay notice compensation (if not worked), accrued salary and benefits, FGTS balance, and 40% FGTS penalty.

  • Mutual Agreement Termination

    • If terminated by mutual consent, notice period and FGTS penalty are halved, and the employee may withdraw up to 80% of the FGTS balance.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Brazilian regulations.
  • Contributions and Taxes: Our expertise in managing local social statutory contributions and local income tax ensures your business complies with Brazil’s financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Brazil’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Brazil’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Brazil

Unlock your growth potential with BIPO’s Employer of Record service in Brazil. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions (FAQ)

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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