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EOR IN Brazil
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A guide to employing and growing your team in Brazil
Fast and compliant market entry. Hire top local talent without the need for a legal entity
Brazil has the largest economy in Latin America, with diverse sectors spanning agriculture, mining, manufacturing, and a rapidly expanding technology services industry. The labor market is strictly governed by the Consolidation of Labor Laws (CLT), which provides some of the most comprehensive worker protections in the world. As of January 1, 2026, the national minimum wage in Brazil is BRL 1,622.00 per month. Additionally, most employees are entitled to a mandatory “13th-month salary” paid in two installments at the end of the year.
Employer Contributions
Social Security (INSS): 20%
Severance Fund (FGTS): 8%
Insurance for Accidents (RAT): 1% – 3%
Other Entities (Sistema S): ~5.8%
Total Employer Contribution: ~34.8% – 36.8%
Employee Payroll Taxes
Social Security: 7.5% – 14%
Total Employee Contribution: 7.5% – 14%
Employee Income Tax Rates
Up to BRL 2,826.65: 0%
BRL 2,826.66 – BRL 3,751.05: 7.5%
BRL 3,751.06 – BRL 4,664.68: 15%
BRL 4,664.69 – BRL 5,597.60: 22.5%
Above BRL 5,597.60: 27.5%
Statutory Leave
Employees are entitled to 30 calendar days of paid annual leave after each 12-month period of service. A unique requirement in Brazil is the Vacation Bonus, where the employer must pay the employee an additional 1/3 of their monthly salary when they take their vacation. Brazil also observes approximately 11 to 13 national public holidays, plus additional state and municipal holidays.
Pregnancy and Maternity Leave
Female employees are entitled to 120 days of paid maternity leave (extendable to 180 days if the company participates in the “Empresa Cidadã” program). This is compensated at 100% of the salary, paid by the employer and later reimbursed by the government through social security credits.
Paternity Leave
Fathers are entitled to 5 days of paid paternity leave (extendable to 20 days if the company is part of the “Empresa Cidadã” program). This is fully paid by the employer.
Work-Related Injury Leave
Parental Leave: Same-sex male couples may apply for maternity leave benefits starting from the day the caregiver takes leave.
Other Leaves: Includes 2 consecutive days for bereavement of immediate family, 3 consecutive days for marriage, and 1 day per year for voluntary blood donation. Sick leave is paid by the employer for the first 15 days; from the 16th day, the Social Security (INSS) takes over the payment.
Termination Process
Termination in Brazil is highly regulated and carries significant costs. For termination without cause, the employer must pay all accrued benefits (13th salary, vacation plus bonus) and a penalty equivalent to 40% of the total balance the employee has in their FGTS account. Termination with “just cause” (serious misconduct) is possible but requires substantial proof and waives most of these penalties.
Notice Period
The minimum notice period is 30 days. For every year worked with the company, an additional 3 days are added to the notice period, up to a maximum of 90 days total. The employer can choose to have the employee work during this period or pay it out in lieu.
Probation Period
The maximum probation period is 90 days. It is common to set an initial 45-day period that can be extended once for another 45 days. During this period, the 40% FGTS penalty and the notice period requirements do not apply.