Hire in Brazil

Typical time to hire

3-4 weeks for contractor (PJ), 4-8 weeks for CLT employment

Entity requirement

Brazilian entity (LTDA or SA) required for CLT employment. CNPJ registration, state and municipal registrations needed.

EOR available

Yes — from $399/employee/month through a Corpshore entity

Contractor of record

Yes — from $39/worker/month

Standard workweek

44 hours (8 hours/day, 4 hours Saturday, or distributed across 5 days)

Maximum weekly hours

44 hours

Minimum annual leave

30 calendar days after 12 months

Public holidays

12 per year

Maternity leave

120 days (180 days for Empresa Cidada participants), fully paid

Paternity leave

5 days (20 days under Empresa Cidada)

Notice period

30 days + 3 days per year of service (up to 90 days maximum)

Severance

FGTS (8% monthly deposits) released on dismissal + 40% penalty. Aviso previo worked or indemnified.

Probation

45 days, renewable once for another 45 days (90 days maximum)

Overtime rules

Minimum 50% premium (CLT). Collective agreements may set higher rates. Sunday/holiday work at 100%.

Income tax range

7.5% to 27.5%

Corporate tax

15% + 10% surtax on profits over BRL 240k/year + 9% social contribution (CSLL)

Social contributions

Employer: ~28% (INSS 20%, RAT, Sistema S). Employee: 7.5-14% (INSS progressive).

VAT / GST

Complex multi-layer: ICMS (state, 7-18%), IPI (federal, varies), ISS (municipal, 2-5%), PIS/COFINS (9.25% combined)

Tax year

Calendar year (Jan-Dec)

Treaty network

Limited treaty network (~35 treaties), but includes major partners

Worker classification

CLT (Consolidacao das Leis do Trabalho) creates a strong presumption of employment. The 2017 labour reform introduced intermittent work and home office provisions. PJ (pessoa juridica) contracting is common but carries significant misclassification risk.

Data protection

LGPD (Lei Geral de Protecao de Dados, 2020) closely modelled on GDPR. ANPD (national authority) has enforcement power including fines up to 2% of revenue (BRL 50M cap).

Right to work

Foreign workers need a work visa and CTPS (work card). The employer must prove the role cannot be filled locally for most visa categories.

Non-compete

Enforceable if limited in time (up to 2 years), geographic scope, and accompanied by financial compensation. Courts assess reasonableness case-by-case.

Collective bargaining

Mandatory annual collective bargaining with the relevant sindacato (sector union). The 2017 reform allowed individual negotiation on some terms but collective agreements still prevail on core labour rights.

PIX (launched 2020 by the Central Bank of Brazil) enables instant, 24/7 transfers and has become the dominant payment method. Over 150 million Brazilians use PIX. TED for larger amounts during business hours.

• 13th salary (decimo terceiro) is mandatory: one additional month salary paid in two installments
• FGTS (8% monthly severance fund) is a significant additional cost beyond salary
• Vacation bonus: employees receive 1/3 of monthly salary as a vacation bonus on top of leave pay
• Tax complexity is extreme: Brazil has over 90 distinct taxes, and the 2023 tax reform is phasing in a simplified VAT through 2033