Hire compliantly in Brazil. Navigate employer costs that reach 70-100% above base salary, a CLT labor code with over 900 articles and an eSocial reporting system where every payroll event is tracked in real time.
Capital
Brasilia
Language
Portuguese
Average Salary
BRL 3,500
Payroll Cycle
Monthly
Employer Cost
50-55%
Paid Leave
30 days
Public Holidays
13 days
Tax Rates
0-27.5%
Hiring guides covering regulations, contributions and costs specific to Brazil. Updated for 2026.
INSS is Brazil's mandatory social security system, funded by a flat 20% employer contribution (with no cap) and progressive employee contributions of 7.5% to 14% (capped at ~R$1,017/month in 2026). When combined with FGTS (8%), work accident insurance, and Sistema S charges, total employer contributions reach 28 to 36% of gross salary. The 2026 contribution table reflects the updated minimum wage of R$1,621 and a new ceiling of R$8,475.55. Non-compliance penalties include fines of 75 to 150% of unpaid amounts, and withholding employee contributions without remitting them is a criminal offence.
Read ArticleA conversation with José Roberto, Founder of Wide Brazil on all things EOR
Read ArticleBrazil's federal minimum wage is R$1,621 per month (R$7.37/hour) from 1 January 2026, a 6.79% increase under Decree 12.797/2025. Five states set higher rates, with Paran\u00E1 reaching R$2,408 for technical workers. Total employer cost adds approximately 47% on top of gross salary once INSS (20%), FGTS (8%), work accident insurance, third-party contributions, the mandatory 13th month salary, and vacation bonus are included. The wage is adjusted annually using a formula tied to INPC inflation plus capped GDP growth, making increases predictable at 5 to 8% per year.
Read Article
When you hire in Brazil, employer costs are not just 20% INSS. Add FGTS, RAT, Terceiros, 13th salary, vacation bonus and contributions on all of those, and mandatory cost exceeds 50% above base salary. Any provider quoting a flat 20-30% is hiding the real number.
Our assessment of EOR providers in Brazil evaluates CLT compliance, eSocial reporting accuracy, FGTS deposit handling and termination cost management.
When you hire in Brazil, the 30-day vacation entitlement with a mandatory 1/3 bonus and the 13th salary effectively create a 14.33-month salary structure before any employer contributions are added.
| Key Employment Facts | |
| Minimum Wage | BRL 1,621/month (BRL 7.37/hour, from January 2026) |
| Probation Period | Up to 90 days (45 + 45 day extension) |
| Standard Working Hours | 44 hours/week (8 hours/day + 4 hours Saturday) |
| Paid Annual Leave | 30 calendar days + 1/3 vacation bonus |
| Notice Period | 30 days + 3 days per year of service (max 90 days) |
| 13th Salary | Mandatory (paid in 2 installments: Nov 30 + Dec 20) |
| Sick Leave | First 15 days employer-paid, day 16+ via INSS |
| Maternity Leave | 120 days at full pay (INSS-funded, employer advances) |
Good to Know: Brazil’s 44-hour workweek includes Saturday. The standard pattern is 8 hours Monday-Friday plus 4 hours on Saturday. Many companies negotiate a compensatory schedule (banco de horas) where Saturday hours are redistributed across the week, resulting in a de facto 5-day week. But the legal default includes Saturday, and overtime calculations reference the 44-hour base.
When you hire in Brazil, mandatory employer contributions exceed 50% of base salary once 13th salary, vacation bonus and their associated charges are included. Add common benefits like transport and meal vouchers and the total reaches 65-70%.
| Employer Contributions | |
| Contribution | Employer Rate |
| INSS (Social Security) | 20% of gross (no cap) |
| FGTS (Severance Fund) | 8% of gross (no cap) |
| RAT (Work Accident Insurance) | 1-3% (by industry risk) |
| Terceiros (S System: SENAI, SESI, SEBRAE, etc.) | ~5.8% |
| 13th Salary (amortized) | ~8.33% |
| Vacation Bonus (1/3, amortized) | ~2.78% |
| FGTS on 13th + Vacation | ~0.89% |
| Total Mandatory Employer Cost | ~50-55% above base salary |
| Employee Taxes (from January 2026) | |
| Tax / Contribution | Employee Rate |
| IRRF (Income Tax, progressive) | 0-27.5% (exempt up to BRL 5,000/month, reduced BRL 5,001-7,350) |
| INSS (employee share, progressive) | 7.5-14% (capped at ~BRL 908/month) |
Good to Know: From January 2026, Brazil’s income tax reform fully exempts earners up to BRL 5,000/month and reduces tax for income up to BRL 7,350/month. The progressive bracket table (7.5%-27.5%) itself didn’t change, but a new “progressive reducer” mechanism is applied after the traditional calculation. For an employee earning BRL 5,000/month, IRRF is now zero. At BRL 6,000/month, the effective IRRF drops by roughly BRL 200 compared to 2025. Above BRL 7,350/month, the traditional calculation applies without reduction. This affects roughly 16 million workers. If you hire in Brazil, your payroll provider must have updated eSocial and IRRF calculations for this change.
Brazil has 13 national public holidays. Carnival (February) is not technically a federal holiday but is universally observed as 2-3 days off in practice.
|
Date |
Holiday |
|
January 1 |
New Year’s Day (Confraternizacao Universal) |
|
February 16-17 |
Carnival (Carnaval, not federal but universally observed) |
|
April 3 |
Good Friday (Paixao de Cristo) |
|
April 21 |
Tiradentes Day |
|
May 1 |
Labour Day (Dia do Trabalho) |
|
June 4 |
Corpus Christi |
|
September 7 |
Independence Day |
|
October 12 |
Our Lady of Aparecida (Nossa Senhora Aparecida) |
|
November 2 |
All Souls’ Day (Finados) |
|
November 15 |
Republic Proclamation Day |
|
November 20 |
Black Awareness Day (Dia da Consciencia Negra) |
|
December 25 |
Christmas Day (Natal) |
Good to Know: Carnival is the single biggest operational disruption when you hire in Brazil. Although Carnival Monday and Tuesday are not federal holidays, virtually every business closes from Saturday through Ash Wednesday afternoon. Most CCTs treat them as paid days off. If your contract is silent on Carnival, expect your Brazilian employees to be unavailable regardless. Black Awareness Day (November 20) became a national holiday in 2024. States and municipalities may add additional local holidays.
Ready to hire in Brazil? Filter providers by CLT compliance, eSocial integration and pricing using the Employsome Comparison Tool. Over 130 providers compared.
