What should I know about hiring in Brazil?
Hiring in Brazil can be difficult and time-consuming if you aren’t familiar with the local labour regulations and norms. That’s why understanding the fundamentals of employment in Brazil is crucial. Firstly, employers must adhere to strict contracts, salaries, benefits, and tax regulations.
In addition, Brazil also has a complicated tax structure, which employers must traverse in order to pay payroll taxes and social security obligations. Secondly, learning about local customs and cultural norms is crucial for finding qualified candidates.
Finally, while recruiting in Brazil, thinking about the associated perks and social security duties is essential. Benefits, like paid sick days, vacation days, and other paid leave, are mandated by law for all employees.
Why is Brazil a good choice for finding remote employees?
When it comes to hiring remote workers, Brazil has a lot to offer. Brazil is home to a sizable population of highly trained experts, especially in the areas of information technology, computer science, and marketing.
In addition, Brazilian people are known for their creativity, adaptability, and strong work ethic. Furthermore, Brazil’s low labour cost makes it a desirable destination for international corporations needing remote workers.
As a result of the country’s cultural richness and thriving entrepreneurial spirit, it is able to attract and retain a remote workforce that is both creative and ambitious. Another beneficial thing is that the country has a vital infrastructure and internet connectivity, promoting efficient teamwork and communication.
How can Native Teams help you hire in Brazil
When it comes to managing local laws and regulations, cultural differences, and language obstacles during the hiring process, Native Teams is here to help. With our Employer of Record services, we may upgrade your benefits and payment arrangements so that they are more competitive with the market and more likely to draw in top candidates.
Hire your first Brazilian employee with Native Teams.
Legal requirements for hiring in Brazil
Brazil’s current minimum salary is R$1,320.00 per month.
Contributions & taxes
Total employment cost is between 28% to 30.5%.
The standard withholding tax (WHT) rate on INE is 15%. However, if certain conditions are met, the paying business might deduct INE from its CIT at a 34% rate.
The total employee cost ranges from 7.5% to 14%
Brazil has progressive individual income tax rates ranging from 7.5% to 27.5%.
To calculate the salary and taxes in Brazil please click here.
Payroll in Brazil is typically processed monthly; however, paying employees twice a month is common practice.
Is there a 13th salary in Brazil?
Employees in Brazil receive a 13th month’s compensation at the end of each year. All employees who have worked all 12 months of the year must receive this incentive from their employers.
Probation period rules
For employees with indefinite employment contracts, the probationary term is 45 days, extendable to 90 days.
In Brazil, notice periods are typically tied to the employee’s reason for termination and their length of service and are outlined in the employment contract.
- 1 year of service: 30 days’ notice;
- Over 1 year of service: 30 days’ notice plus 3 days for each year of service, with a maximum of 60 days.
In the event of a termination without cause, the employee is entitled to severance pay equal to 40% of the amount accumulated in the Unemployment Guarantee Fund.
If the termination occurs within 30 days of the anticipated effective date of the collective bargaining agreement for the subsequent period, additional payments will be necessary, including:
- 1 month’s salary;
- The payment of accrued vacation time and a 1/3 of the vacation bonus;
- A prorated 13-month pay period;
- Other payments mandated by the applicable collective bargaining agreement or contract.
In the event of a termination for cause, any accumulated but unused vacation time, vacation bonus or other payments required by the appropriate collective bargaining agreement or contract must still be paid. Still, neither FGTS nor the additional month’s salary will be given out.
In Brazil, the maximum number of hours worked is eight per day and 44 per week unless the parties to the employment agreement specify otherwise.
Leave and benefits
There are 13 official national holidays in Brazil:
- New Year’s Day
- Carnival (2 Days)
- Easter (2 Days)
- Martyrdom of Tiradentes
- Labor Day
- Corpus Christi
- Catholic Holiday
- Independence Day
- Catholic Saint
- Day of the dead
- Republic Day
- Catholic Holiday
- Christmas Day
Brazil has 8 regional holidays:
- São Paulo Anniversary
- State Rebellion Day
- Black Awareness Day
- Public Holidays in Rio de Janeiro (5 days)
In order to receive sick pay, workers must present a doctor’s note no later than 48 hours after their first day of illness. For the first 15 days of sick leave, the company will pick up the tab at 100% of the employee’s regular wage.
Maternity leave & paternity leave
Maternity benefits are available to all qualifying female employees, including those who adopt a child. The Brazilian social security organisation INSS will pay the employee a maternity benefit for 120 days. Employers who participate in the government program can grant a maternity leave extension of up to 180 days.
The father is entitled to a minimum of 5 days of paid paternity leave, which the employer may increase to 20 if the father participates in a government program that meets specific requirements.
Other leave (marriage, bereavement, exam leave)
Each employee is eligible for up to 5 days of paid time off in the event of a death in the immediate family.
Employees are entitled to 30 days of paid leave each year to provide immediate and necessary care for a family member under the age of 12, and 15 days for an older relative.
Employees are eligible for up to three days of paid leave in the event of a wedding.
What are the minimum vacation days?
In Brazil, employees are entitled to at least 30 days of paid vacation annually. The Labour Reform permits employees to take paid leave over a maximum of three periods, the shortest of which must be at least 14 days and the others at least 5 days each.
Health security & private insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*
Relocation and work permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the visa/work permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
Why use Native Teams for hiring in Brazil?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.