Brazil at a glance
Taxes in Brazil
Employer Contributions
Total employer tax: 29%–33.5%
| Contribution Type | Rate |
|---|---|
| Social insurance (INSS) | 8.5%–12.5% |
| Pension (FGTS) | 8% |
| Work accident insurance (SAT) | 1%–3% |
| Third-party contributions (INCRA, SENAI, etc.) | ~5.8% |
Total employer tax: 29%–33.5%
| Contribution Type | Rate |
|---|---|
| Social insurance (INSS) | 8.5%–12.5% |
| Pension (FGTS) | 8% |
| Work accident insurance (SAT) | 1%–3% |
| Third-party contributions (INCRA, SENAI, etc.) | ~5.8% |
Income tax: 0%–27.5% | Social security: 7.5%–14%
| Gross Income (BRL/month) | INSS Rate |
|---|---|
| Up to 1,412.00 | 7.5% |
| 1,412.01 – 2,666.68 | 9% |
| 2,666.69 – 4,000.03 | 12% |
| 4,000.04 – 7,786.02 | 14% |
| Gross Monthly Income (BRL) | Rate |
|---|---|
| Up to 2,428.80 | 0% |
| 2,428.81 – 2,826.65 | 7.5% |
| 2,826.66 – 3,751.05 | 15% |
| 3,751.06 – 4,664.68 | 22.5% |
| Over 4,664.68 | 27.5% |
Employer of Record in Brazil
How Remote& EOR Works
Remote& acts as the legal employer of your Brazilian workers — managing INSS, FGTS, payroll, tax filings, and employment contracts in accordance with Brazil's Consolidation of Labor Laws (CLT), while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files INSS/FGTS/IRRF, administers mandatory benefits, ensures CLT compliance |
| Employee | Works for your company under a locally compliant Brazilian contract |
Ask Remi:
"Hire a senior software engineer in São Paulo — BRL 18,000/month, starting next quarter" Remi handles everything: CLT contract, INSS registration, FGTS account setup, 13th-month calculation, and payroll.
Benefits in Brazil
- 13th-month salary (décimo terceiro): Mandatory annual bonus paid in two installments — by November 30 and December 20 each year
- FGTS (Fundo de Garantia do Tempo de Serviço): Employer deposits 8% of gross salary into a personal account; released on termination
- Transportation voucher (Vale-Transporte): Mandatory if the employee uses public transport; employer pays amount exceeding 6% of employee's salary
- Holiday bonus (abono de férias / terço de férias): Employees receive an additional one-third of monthly salary on top of vacation pay
- Daycare assistance: Required for employers with 30+ female employees
- Meal voucher (vale-refeição)
- Private health insurance
- Private pension (previdência privada)
- Extended parental leave (via Empresa Cidadã program)
- Life insurance
- Flexible working arrangements
- Annual performance bonus
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 30 calendar days + public holidays |
| Sick Leave | First 15 days paid by employer; from day 16, covered by Social Security (INSS) |
| Maternity Leave | 120 days (extendable to 180 days via Empresa Cidadã program) |
| Paternity Leave | 5 days (extendable to 25 days via Empresa Cidadã) |
| Bereavement Leave | 2 days for death of close family members |
Employment conditions
Probation
Probation period is 45 days, extendable once to a maximum of 90 days total.
Notice Periods
Base notice period is 30 days, plus 3 additional days per year of service — capped at 90 days total.
Employee Rights & Protections
Brazilian workers under the CLT are entitled to: written employment contract, payslip, statutory holidays, health and safety protections, anti-discrimination protection, unemployment insurance (seguro-desemprego), FGTS severance fund, 13th-month salary, and transportation voucher.
Payments
End of employment in Brazil
Employment may be terminated without cause with proper notice or payment in lieu. Severance requirements include:
- FGTS balance paid out in full
- 40% additional compensation of the total FGTS balance (employer-paid penalty)
- Accrued unused vacation plus one-third bonus
- Proportional 13th-month salary
- All outstanding salary
Termination must be documented in writing, signed, and dated. Termination with just cause (justa causa) requires documented, provable misconduct under CLT provisions and eliminates most severance entitlements.
Frequently asked questions
Four routes: run payroll from HQ (generally non-compliant long-term); engage independent contractors (non-compliant for full-time dedicated workers under Brazilian law); establish a Brazilian entity for direct employment; or use Remote& as Employer of Record — the fastest path to compliant employment without incorporation.