Employer of record in Brazil

We make it easy and smooth to expand your business into Brazil. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.

Accelerate your growth into Brazil compliantly and hassle-free

At Serviap Global, we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most: your business.

How we can help you expand in Brazil

As your EOR in Brazil, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in Brazil provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team. 

Expand to Brazil with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in Brazilensuring your staff will be hired in compliance with labor and tax regulations.

Table of contents

Quick facts

Brazilian Real (BRL)


Payroll Cycle:


The economy

Brazil has a developing mixed economy that is the twelfth largest in the world by nominal Gross Domestic Product (GDP) and eighth largest by purchasing power parity in 2020. The country has an estimated US$20.18 trillion worth of natural resources which includes vast amounts of gold, uranium, iron, and timber, showing an enormous human and natural capital.

The importance of small and medium-sized companies

SMEs (small and medium-sized enterprises) play an important role in Brazil’s economy, accounting for 62% of total employment and fostering social inclusion. Although Brazil has a strong network of startup incubators and accelerators, according to a report, there is scope for growth and innovation-led investments in the Brazilian SMEs that you can fit in.

The Federal Constitution gives preferential treatment to SMEs in tax and labor laws. For example, Brazil implements different tax regulations for supporting the survival of SMEs.

Brazilian opportunities and investments

Energy, alternative energy, agriculture and technology are the main sectors that investors look for when expanding to Brazil. Despite the demand for it, Brazil has fallen behind in the development of renewable and alternative sources of energy. 

According to Brazil’s Energy Research Office, renewable energy sources will reach 61 Gigawatts capacity by 2027.

The government also offers incentives and benefits to businesses like special tax redemptions for setting up fixed assets in the country as infrastructure projects in transportation, energy, sanitation, pipelines, etc. 

Companies in the IT, ICT, Technology sectors also benefit from payroll relief. The government offers tax incentives, subsidies and benefits for trademarking, patenting or developing new technology and innovation in the technological sector.

Characteristics of the Brazilian population

Brazil is a diverse region, with varied and nuanced consumer behavior. To succeed in this market, Serviap Global will advise you about your customer, show you what your target audience wants, and adjust your strategy accordingly. Here are some key points:


Immigration has been a very important demographic factor in the formation, structure and history of the population in Brazil, influencing culture, economy, education, racial issues, etc.

Brazil has received the third largest number of immigrants in the Western Hemisphere, after the United States and Argentina.The Brazilian consumer market is made of roughly 516.2 billion people.

The population is predominantly young, with people aged 15-34 accounting for nearly 50% of the working population (aged between 15-64 years). The median age in Brazil is 33.5 years.

Subways in cities like São Paulo transport around 3.5 million people per day. But, they are considered the most modern in Latin America and have received awards in the recent past as one of the cleanest systems in the world.


The Amazonian country is the largest in South America, bounded by the Atlantic Ocean. Brazil’s border touches all countries on the South American continent except Chile and Ecuador.

Two of the world’s largest cities are in Brazil – Sao Paulo and Rio de Janeiro – both the cities are cultural and historical hotspots. Sao Paulo state accounts for half of the country’s GDP, with a stronghold in manufacturing industries.

Consumer preferences

After facing one of the worst recessions in its history, Brazilian consumers are now more cautious and conservative. Three out of four consumers are dedicated to saving more, actively looking for the best discounts and competitive prices for goods before making a purchase.

Almost 35% of Brazilians are loyal to brands but prefer to buy the most affordable or cheapest goods under the trusted brand. Almost 21% of consumers are willing to trade-down or switch brands for savings, as opposed to the global rate of 12%.

This provides a huge potential for competitive goods, especially because Brazilian consumers do not tend to switch back, after the trade-down.

Economic opportunities

Workforce and laws

After the economic recession, Brazil’s unemployment rate has been high (~12%). The recent labor reform of 2017 brought about 100 changes, most notably creating new forms of hiring and termination.

When expanding to Brazil, Serviap Global will be your local knowledge partner, helping you to navigate through the law and make the right decisions.

Human talent

The skilled workforce of Brazil is highly diverse, as the country made commendable investments in education, skilling in the 2000s. However, this results in almost 67% of the population ready to be employed.

By expanding your business to this country, you’ll be able to take advantage of this and hire a diverse team that can offer you different opinions and views, fill skills gaps and shortages, and become a truly multicultural workforce.

Technological ecosystem

The technology sector in Brazil is ever-growing, and the government is spending to build a solid infrastructure for Agri-tech, fin-tech innovation and development. The e-commerce market is broadening, so is the need to serve consumers with efficient tech solutions.

Facilities for foreign investment

Brazil has made foreign investment easy by establishing a single institution –Direct Investments Ombudsman– to facilitate interactions between foreign investors and all other Brazilian government agencies. Also, it works closely with the WTO for easy facilitation of investments.

Brazilian culture

Ships from Portugal arrived on the central coast north of Rio de Janeiro in the early 16th century. Now, Brazil is the only country in South America that speaks Portuguese, and one of the ten territories that consider it as an official language worldwide.

Slavery in Brazil lasted for 300 years, and it imported some 4 million Africans to the country. Making it the last country in the Americas to abolish slavery, in 1888.

Beside the hard past, Brazilians are known for being friendly and happy. Music is a vital part of everyday life in Brazil. Its cultural richness and its abundant innovation are based on the strong and spectacular racial miscegenation evident in the culture of the country.

In the summer during Carnaval, big cities host massive parties in the streets when the sun comes down. Meeting locals and tourists in one place, dancing and laughing together with the sound of drums on a fast-paced samba.

General highlights



States / provinces

26 states and 1 Federal District

Principal cities

São Paulo, Rio de Janeiro, Brasilia



Local currency


Date format


Thousands separator format


Country dial code



215.300 million (2022)

Border countries

Argentina, Bolivia, Colombia, Guyana, Guyana Francesa, Paraguay, Pero, Surinam, Uruguay, and Venezuela

Continental surface

8.516 million km2

Tax year

January 1st to December 31st


Average state VAT rate in Brazil (ICMS) is 18%

Minimum wage

BRL$1,302 per month

Tax payer identification number name in the

CPNJ (National Register of Legal Entities)

Laws that regulate labor relationships 



Federative Republic of Brazil Political Constitution of 1988


Consolidation of labor laws


Agreements and collective work agreements

Key tax and labor authorities

Ministry of Labor and Employment

Labor contracts

The individual employment contract is the tacit or express agreement, corresponding to the employment relationship. For hiring purposes, the employer will not require the applicant for proof of prior experience for more than six months in the same type of activity.

The individual employment contract may be agreed tacitly or expressly, orally or in writing, for a fixed or indefinite period, or for intermittent work.

The proof of the individual employment contract will be made by means of the notes on the professional card or by written instrument and will be provided by all means permitted by law.

Types of contracts

The labor relations may be for a specific work or time or indefinitely and, where appropriate, may be subject to Apprenticeship contract or part time. In the absence of express stipulations, the relationship will be for an indeterminate period.

Indefinite contractThis type of contract has no end date and it must contain all the contracting rules in accordance with current legislation
Fixed-term contractThe term of employment will be considered a fixed term contract whose duration depends on a fixed term or on the execution of specific services or on the realization of a certain event that can be predicted approximately
Fixed-term contract

The contract for a specific period will be valid only in the case of:

a.       of service whose nature or transience justifies the predetermination

of the term;

b.       transitory commercial activities;

c.       experience contract (cannot exceed ninety (90) days.)

The employment contract for a fixed term may not be stipulated for more

than 2 (two) years

The employee called to occupy, temporarily, or in temporary or occasional substitution, a position different from that of the company, will be guaranteed the count of time in that service, as well as the return to the previous position

Intermittent and seasonal contracts

The employment contract in which the provision of services, with subordination, is not continuous is considered intermittent, occurs with alternation of periods of service and inactivity, determined in hours, days or months, regardless of the type of work. employee and employer, except aviators, governed by their own legislation

Intermittent work contracts must be in writing and must specifically contain the amount of work hours, which cannot be less than the hourly value of the minimum wage or due to other employees of the establishment who perform the same function in an intermittent contract or not intermittent

At the end of each service period, the employee will receive immediate

payment of the following fees:

1.       Remuneration

2.       Proportional vacations with an additional third

3.       Thirteenth proportional salary

4.       Paid weekly rest

5.       Additional legal

Basic requirements
The information that the contract must contain is established in the Article 10 of Work Code:

•          Place and date of the contract
•          Indication of nationality and dates of birth and worker income
•          Determination of the nature of the services and the place or city in which they are to be provided
•          Amount, form and period of payment of the agreed remuneration
•          Duration and distribution of the workday, unless the company’s system exists shift work, in which case the provisions of the internal regulations will be followed
•          Term of the contract
•          Other agreements agreed by the parties


Payroll is one of the most important processes of a company. From this operation, the final amount that a worker will receive and the amount that the company will invest in a given period is obtained.

Statutory benefits in Brazil

The main remuneration benefits that the employer is obliged to pay to its workers on the occasion of the em- ployment relationship are those indicated in the Work Code, without prejudice to all those granted and agreed according to the employment contract.

The role that labor benefits play is that they are always aimed at improving the living conditions of workers,

reducing their expenses and granting them incentives that foster their cultural and social development.


The minimum wage, fixed in law and unified for the entire nation, must be able to meet their basic and their family’s vital needs such as housing, food, education, health, rest, clothing, hygiene, transportation and social security, with readjustments periodically that preserve the purchasing power, being prohibited its affectation for any purpose.

The base salary should be proportional to the extension and complexity of the work.

It is forbidden to differentiate salaries, exercise functions and admission criteria based on sex, age, color or marital status;

Any discrimination, regarding the salary and admission criteria, of the

worker carrying deficiencies is prohibited; (C.P. Art 7.)

The payment of the salary, whatever the type of work, will not be stipulated for a period greater than 1 (one) month, with the exception of commissions, percentages and bonuses.

Payment in kind of salary will be paid in local currency.





Every employee shall have the right to an annual leave, without prejudice to compensation. Article 129

After each 12 (twelve) months of term of the employment contract, the

employee will be entitled to vacations, in the following proportion:

I.         30 (thirty) calendar days, when the service has not been lost more

than 5 (five) times;

II.       24 (twenty four) consecutive days, when there have been 6 (six) to 14 (fourteen) absences;















III.     18 (eighteen) calendar days, when there have been 15 (fifteen) to 23

(twenty-three) absences;

IV.     12 (twelve) calendar days, when there have been 24 (twenty-four) to 32 (thirty-two) absences.

–   It is forbidden to deduct, from the holiday period, the absences of the employee in service.

The holiday period will be calculated for all purposes as duration of service. Article 130

Article 131 – The employee shall not be considered absent for the purposes

of the preceding article:

I.         during the compulsory leave of the employee for maternity or abortion, observing the requirements for the collection of maternity pay financed by Social Security;

II.       due to an accident at work or illness witnessed by the National Social Security Institute – INSS.

III.     justified by the company, which means that it has not determined

the corresponding salary discount;

IV.     during preventive suspension to respond to administrative investigation or preventive detention, when dismissed or acquitted;

V.      on the days when there has been no service.

Article 134 – Holidays will be granted by act of the employer, in a single period, within 12 (twelve) months after the date on which the employee acquired the right.

Article 135 – The vacation concession shall be informed in writing to the employee, at least 30 (thirty) days in advance. From this participation the interested person will receive a receipt.

The employee will not have the right to leave without having to present his employer with his work and social security card, so that the respective concession can be recorded.

Art. 137 – When vacations are granted after the period mentioned in art. 134, the employer will pay double your compensation.




Vacation bonus

 The employee will receive, during the vacations, the remuneration owed on the date of his grant. (CLT, Art. 142)

The employee has the right to convert 1/3 (one third) of the vacation period to which he is entitled to a financial allowance, in the amount of compensation due on the corresponding days.

The holiday voucher must be requested up to fifteen (15) days before the

end of the acquisition period. (CLT, Art. 143)




13th month

A 13th-month salary is required in Brazil and is an amount equal to one month’s salary which is paid out to employees in two parts in November and December. The pro-rated 13th-month salary is also due upon termination.

The 13th-month payment is a legally mandated benefit and not part of the base salary. During negotiations with candidates, it is important clearly state what salary is being offered and whether it is inclusive or exclusive of the 13th-month payment.













Protection for working women

•          The normal working hours of women will be eight (8) hours per day, except in cases where a shorter duration is established. (CDT. Art.373)

•          Establishments where at least 30 (thirty) women over 16 (sixteen) years of age work will have an appropriate place where employees can keep their children under surveillance and assistance during breastfeeding.

•          It is not a fair reason for the termination of the employment contract of a woman who has married or is pregnant.

•          A confirmation of the state of pregnancy that arises in the course of the employment contract, even during the period of notification worked or compensated, guarantees the pregnant employee provisional stability.

•          The pregnant employee is entitled to a maternity leave of 120 (one hundred and twenty) days, without prejudice to employment and salary. Rest periods before and after childbirth can be increased by 2 (two) weeks each, through a medical certificate.

•          The employee who adopts or obtains judicial custody for the purpose of adopting a child or adolescent will be granted a maternity leave of 120 (one hundred and twenty) days.

•          In the event of the death of the parents, the spouse or co-worker will have the right to leave for the entire period of maternity leave or for the rest of the period to which the mother would be entitled, except in the case of death or abandonment of the child.

•          To breastfeed her child, including adoption, until she is six (6) months old, the woman will be entitled, during the workday, to two

(2) special half-hour breaks each.


The employee may stop attending the service without prejudice to the salary:

I.         Up to 2 (two) consecutive days, in case of death of the spouse, ascendant, descendant, brother or person who, declared on his work and social security card, lives under his economic dependence

II.      Up to 3 (three) consecutive days, due to marriage

III.     For one day, in case of delivery during the first week

IV.     For one day, every 12 (twelve) months of work, in the case of voluntary donation of duly proven blood

V.      Up to 2 (two) consecutive days or not, in order to enlist voters, in accordance with the respective law

VI.     In the period of time in which it must meet the requirements of the Military Service

VII.   On the days when you are obviously taking exams to enter a higher education institution

VIII. For as long as necessary, when you have to appear in court

IX.     Whenever necessary, when, as a representative of a trade union entity, attend an official meeting of an international organization of which Brazil is a member

X.      Up to 2 (two) days to accompany medical appointments and complementary exams during the pregnancy period of your wife or partner

XI.     For one (1) day per year to accompany a child of up to six (6) years in medical consultation

XII.   Up to 3 (three) days, in every 12 (twelve) months of work, in case of properly tested preventive cancer exams

Employers contribution or labor cost

The employer contributions turn out to be those sums of money that the employer will be obliged to contribute to the state for having employees. They are not recoverable for the employer and turn out to be indispensable for employees since this covers part of what is paid to social security.

INSS (National Institute of Social Security)

Brazil has an extensive social security system to which everyone working in Brazil is obligated to contribute, including expats. Social security contributions are paid by both employee and employer. Between 8 and 11% of the employee’s pre-tax salary is deducted for social security by the Ministry of Social Affairs (Ministério da Previdência Social).

Social security benefits, such as pensions, sick pay and invalidity benefits are paid by the National Institute of Social Security. To be eligible for a public old-age pension, workers have to contribute to the fund for a minimum of 15 years while invalidity benefits require a minimum of 12 months’ contributions to the scheme.

FGTS (Fund of Guarantee for the Time in Service)

The employer should open for each of its employees a reserve fund (Fund of Guarantee for the Time in Service). Each month, an amount equivalent to 8% of the gross salary (+13th month, holidays, and bonus) is paid on this FGTS. This 8% is withheld in the payslips.

The FGTS is a specific type of frozen account into which the employer pays a certain percentage of the employee’s monthly salary. In the case of specific events, such as termination without cause or serious disease, the employee receives the money from their account.

Excepting cases of resignation, when the employee leaves the company, the amount of accumulated FGTS is paid to him/her. Moreover, there can be a severance payment equal to 50% of the accumulated amount of FGTS (40% to the dismissed employee, and 10% to social security).

In case of resignation, the amount of FGTS is not paid to the employee. Nonetheless the employee never loses the benefits of this amount: the accumulated amount is held until the employee faces a future lay off.

SAT/RAT (Labor Accident Risk)

The Risco de Acidente do Trabalho, also known as RAT, which is the Labor Accident Risk, is an exclusive contribution paid by the employer instituted by law. It refers to the coverage of the consequences and expenses workplace accidents. The rate applied on payroll ranges from 1% to 3% as follows:

1% rate is taxed over companies in which the risk of labor accident is considered low.

2% rate is charged on companies that presents a medium risk of labor accident.

3% rate is applied on companies presenting a high risk of labor accidents

Social assistance

Social Assistance is a contribution to fund several government or private services that qualify such as education and employee assistance. It is equivalent to 5.8% of payroll. The following institutions are beneficiaries of this type of tax:

Senac/Sesc: National Commercial Learning Service

Senai/Sesi: Social Service of Industry/ National Service of Industrial Training Sebrae: Brazilian Micro and Small Business Support Service

Incra: National Institute for Colonization and Agrarian Reform

Federal tax

I.R.P.J. (Corporate Income Tax)

C.S.L.L. (Social Contribution on Net Income)

P.I.S. (Social Integration Programs)

C.O.F.I.N.S. (Contribution to Social Security Financing)

I.S.S. (Institute About Services)

Tax is collected upon completion of services at the place of establishment or domicile of the service provider

Workday and holidays

The workday is the time during which the worker must effectively lend their services in accordance with the the duration of normal work not exceeding eight hours a day and forty-four weeks per week, allowing compensation of schedules and reduced working hours, by collective agreement or work agreement. Paid weekly rest, preferably on Sunday.

The overtime pay exceeds, at least, fifty percent to normal. Each employee will be guaranteed a weekly rest of 24 (twenty-four) consecutive hours, which, except for reasons of public convenience or imperative service, will coincide with all or part of Sunday. 

Work on national holidays and religious holidays is prohibited, in accordance with applicable law. Except in cases of weekly or biweekly retransmission, night work will have a higher remuneration than day work and, for this purpose, their remuneration will have an increase of at least 20% (twenty percent) during the day. 

For the purposes of this article, the work done between 10 p.m. one day and 5 a.m. the next day is considered nocturnal. 

In mixed schedules, thus understanding those that cover the day and night periods, the provisions of this article and its paragraphs will apply to night work hours. (CLT Art. 7)

Type of work dayWorking hours per dayOvertimeSundays
Day shift8:00 – 17:00



An additional 50% of the salary

Night Shift22:00 – 5:00
Mixed Shift9:00 – 18:00

Public holidays

DateHoliday name
January 1stNew Years
April 10thPassion of Christ
April 21stTiradentes Day
May 1stLabor Day
September 7thIndependence Day
October 12thFeast of the Aparecida Virgin
November 2ndDay of the Dead
November 15thAnniversary of the Proclamation of the Republic
December 25thChristmas

Employee termination

The employment contract will end in the following cases:
  1.  Act of misconduct;
  2.  Habitual negotiation on their own or third party without the permission of the employer, and when it constitutes an act of competence for the company for which the employee works, or is detrimental to the service;
  3. Criminal conviction of the employee, which becomes final if the sentence has not been suspended;
  4. Lack of performance in the performance of their duties;
  5. Habitual or in-service drunkenness;
  6. Violation of company secrecy;
  7. Act of indiscipline or insubordination;
  8. Abandonment of work;
  9. Act to the detriment of the honor or good reputation practiced in the service against any person, or physical offenses, under the same conditions, except in the case of self-defense, self or third parties;
  10. Act to the detriment of honor or good name or physical offenses committed against the employer and the superiors, except in the case of self-defense or self-defense;
  11. Constant game practice.
The employee may consider the contract terminated and claim compensation due when:
  1. Services are required in excess of their strength, as defended by law, contrary to good morals or not related to the contract;
  2. Is treated by the employer or its superiors with excessive rigor;
  3. Be in obvious danger of considerable damage;
  4. Breach of the employer’s obligations under the contract;
  5. Practice the employer or his agents, against him or his family members, an act detrimental to honor and good reputation;
  6. The employer or his agents offend him physically, except in the case of self-defense, self-defense or third parties;
  7. The employer reduces his work, either by piece or task, in order to significantly affect the importance of wages.
An employee who has more than 10 (ten) years of service in the same company cannot be dismissed, except for reasons of serious misconduct or force majeure, duly proven.

Labor termination settlement

At the end of the employment contract, whatever its cause, the employee will be entitled to a single or double remuneration, as the case may be, corresponding to the holiday period for which he has acquired the right. 

At the end of the employment contract, after twelve (12) months of service, the employee, provided he has not been dismissed for cause, will be entitled to compensation for the incomplete vacation period, in accordance with art. 130, in the proportion of 1/12 (one twelfth) per month of service or fraction for 14 (fourteen) days.

The compensation due for the termination of the contract for an indefinite period will be one (1) month’s remuneration per year of effective service, or per year and fraction equal to or greater than six (6) months.

The first year of the term of the contract for an indefinite period shall be considered as a trial period and, before it is completed, no compensation shall be paid.

If the salary is paid per day, the calculation of compensation will be based on 25 (twenty-five) days.

If paid per hour, compensation will be calculated on the basis of 200 (two hundred) hours per month.

For employees who work on the commission or who are entitled to percentages, compensation will be calculated by the average commissions or percentages received in the last 12.

 For employees who work for a task or service performed, the compensation will be calculated based on the time that the interested party usually devotes to performing his service, calculating the amount of what would be done for 30 (thirty) days.

In contracts that have a stipulated term, the employer who, without just cause, dismisses the employee must pay, as compensation, and in half, the compensation to which he would be entitled until the end of the contract.

 For fixed-term contracts, which contain a clause that guarantees the reciprocal right of termination before the expiration of the adjusted period, either party shall exercise the principles governing the termination of the contracts for a fixed term.

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