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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

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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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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.

This guide was last updated on 22 August 2025. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Key Contents of a Labour Contract

Labour contracts must be signed by both the employer and employee and should clearly specify key terms such as salary, job type, working hours, and other essential conditions of employment.

Individual Labour Contracts and Collective Agreements

  • Individual labour contracts are directly signed between employer and worker.
  • Collective bargaining agreements are negotiated and signed by unions representing employees and employers.

  • Where a collective bargaining agreement addresses the following matters, it takes precedence over general labour law:

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

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

Contract Types by Population

  • According to the Consolidation of Labour Laws (CLT), wages must be registered according to the following types:

    • Monthly (30 days)
    • Hourly (based on actual hours worked)
    • Commission (with a minimum wage guarantee)
    • Task-based (based on employee output)
  • Minor Employees: Individuals aged 14–18 who are still in school. Unlike standard CLT contracts, they work a maximum of 6 hours per day. FGTS contribution rate is 2%.
  • Interns: Applies to enrolled students undertaking internships relevant to their studies. Internships are not considered employment under CLT. No INSS or FGTS contributions are required. Income exceeding the tax-exempt threshold is subject to income tax withholding (IRRF). Contracts must be signed by the intern, the employer, and the educational institution.

  • Directors:

    • With FGTS: Social security (INSS) and income tax (IRRF) are deducted; FGTS contributions must be paid.
    • Without FGTS: Social security (INSS) and income tax (IRRF) are deducted; FGTS is not required.

Contract Types by Duration

  • Temporary Contracts: Used for short-term labour services to replace regular employees or meet temporary workload increases. The employer decides the duration, up to 180 days, which may be extended once without exceeding the original term.
  • Fixed-term Contracts: Labour contracts with a predetermined start and end date, typically 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, the contract is deemed indefinite.
  • Indefinite Contracts: The most common contract type, valid until either the employer or employee terminates the employment relationship.

Statutory Contributions

ItemDetailsEmployer’s ContributionEmployee’s Contribution
National Institute of Social SecurityProvides workers with pension, education fund, workers’ compensation, unemployment insurance, and other benefit programmes20% 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 
System S 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 BRL 1,518 per month.

Public Holidays

The public holidays in Brazil for 2025 are listed below. Please refer to official announcements from the Brazilian government for the latest updates.

Holiday NameDate
New Year’s Day1 January 2025
Carnival3 March 2025
Carnival4 March 2025
Good Friday18 April 2025
Tiradentes Day21 April 2025
Labour Day / Dia do Trabalho1 May 2025
Corpus Christi19 June 2025
Independence Day9 July 2025
Our Lady of Aparecida/Nossa Senhora Aparecida12 October 2025
All Souls’ Day2 November 2025
Republic Day/Proclamação da República15 November 2025
Black Consciousness Day20 November 2025
Christmas Day25 December 2025

Working Hours

Normal Working Hours

  • Under Brazil’s 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 through negotiation between the employer and employee or via collective agreements. For example, some collective agreements provide for less than 44 hours per week. Certain categories, such as shift workers and bank employees, may work only 6 hours daily (36 hours weekly).
  • Employees working no more than 25 hours per week are classified as part-time.
  • According to Law No. 10,243 (6 June 2001, Article 62), employees working outside the employer’s premises and those in managerial positions are exempt from working hour limits.
  • According to Law No. 10,243 (6 June 2001, Article 62), employees working outside the employer’s premises and those in managerial positions are exempt from working hour limits.

Rest Time

  • Employees working more than 6 hours per day are entitled to a rest period of at least 1 hour and up to 2 hours. If the employer fails to provide this rest period, they must pay an additional 50% of the employee’s regular hourly wage for the scheduled rest hours.
  • Employees working between 4 and 6 hours per day must be provided with a rest period of at least 15 minutes.
  • Employees must receive 11 hours of uninterrupted rest between two workdays. If daily working hours extend to 12 hours, a continuous rest period of 36 hours must immediately follow.

Night Work

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

Days Off

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

Work Hours Adjustment

  • Under the CLT, employers may negotiate adjustments to working hours based on production or business needs. This flexibility applies to all types of labour contracts and requires the consent of the employee, either individually or via collective agreement.
  • For example, employers may reduce normal working hours during the low season without reducing wages, and schedule additional hours during the peak season to compensate.
  • The adjustment period must not exceed 120 days unless otherwise stipulated in labour-management agreements.
  • During peak periods, daily working hours may be increased by up to 2 hours, provided the total weekly hours do not exceed the legal maximum of 44 hours. Overtime premiums are not payable in this scenario, but the employee must be compensated with subsequent rest time. Daily working hours must not exceed 10 hours, and weekly hours within the 120-day adjustment period must remain within the legal limit.

Overtime

  • Employees may work a maximum of 2 hours of overtime per day. In emergencies, with a registered special agreement with the Ministry of Labour and Employment, this limit may be exceeded.

  • Overtime compensation must be paid as follows:

    • Weekdays (Monday to Saturday): At least 50% above the normal hourly rate.
    • Weekends or statutory holidays: At least 100% above the normal hourly rate (double time).
    • Night shift (10:00 PM – 5:00 AM) overtime includes an additional 20% night allowance, applied before calculating the overtime pay.

Other Regulations

Labour Registration

All paid employees in Brazil must be registered within five working days of hiring. The “Work and Social Welfare Card” (CTPS) and the company’s “Employee Register” are issued and managed by the Ministry of Labour or authorised agencies. Employers are required to record salary, working conditions, and other relevant details in these documents. Registration serves as the primary proof of employment. Employees must be registered with the Ministry to obtain a CTPS, which the employer is obliged to sign and maintain up to date.

Equal Pay for Equal Work

Under Brazilian labour law, employees are entitled to equal pay where:

  • Job functions are identical, the work location is the same, and any difference in tenure in the same position does not exceed two years;
  • The overall difference in length of service within the company does not exceed four years.

Employers may face fines, back pay obligations, and labour inspections for gender-based pay discrimination.

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 following the end of their term.

Union Contributions

Union fees are voluntary; employees may choose whether to contribute.

Employer Obligations on Payroll and Employee Records

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

Probationary Period

The maximum probationary period in Brazil is 90 days. It may be agreed upon initially and, if necessary, extended or renewed, provided the total duration does not exceed 90 days. For example, an initial probation period of 45 days may be extended by a further 45 days, or a 30-day probation period may be renewed for an additional 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 provided at least 30 days in advance, with an additional three days for each year of service, up to a maximum of 90 days.

Compensation

  • Termination Without Cause

    If an employee is terminated without cause, the employer must either observe the notice period or provide payment in lieu of notice. Termination must be documented in writing, specifying the effective termination date. The employer is required to pay:

    • Notice compensation (if the notice period is not worked);
    • Accrued salary and benefits;
    • FGTS balance; and
    • 40% FGTS penalty.

  • Termination by Mutual Agreement

    • Where termination occurs by mutual consent, both the notice period and the FGTS penalty are halved. The employee may also 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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