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Compliantly hire and expand your business in Brazil
When it comes to employing and managing employees in Brazil, there are specific procedures and regulations that must be followed.
Brazil is the largest and easternmost country in South America and in Latin America. Brazil is the world’s fifth-largest country by area and the seventh most populous. Its capital is Brasília, and its most populous city is São Paulo. The federation is composed of the union of the 26 states and the Federal District. It is the only country in the Americas to have Portuguese as an official language. It is one of the most multicultural and ethnically diverse nations, due to over a century of mass immigration from around the world.
Brasília
Capital
$11,178
GDP per Capita
$2.279 trillion
Total GDP
203,062,512
Total Population
0.754
Human Development Index
UTC -2 to -5
Time Zone
Portuguese
Official Language
Real (BRL)
Currency
8,515,767 km2 (3,287,956 mi2)
Land Area
Here's what you need to know
To employ workers in Brazil, it’s important to follow specific regulations and procedures. However, enlisting the help of a local employment and payroll expert can make the process smoother and ensure that you’re meeting all the necessary legal requirements while providing a positive work experience for your staff.
Employment contracts are mandatory in Brazil and must be written in Portuguese. They should clearly outline:
Job title, duties, and responsibilities
Salary and benefits (including 13th month salary and vacation bonus)
Working hours and overtime pay
Leave entitlements (annual leave, sick leave, etc.)
Termination terms (notice period, severance pay)
Confidentiality clauses (if applicable)
Minimum Wage
Brazil has a national minimum wage, currently set at R$1.412,00 (Brazilian Real) per month.
Payroll Terms
Salaries are typically paid monthly by the 5th working day of the following month. Employers must provide payslips with details of gross pay, deductions, and net pay. Payslips can be electronic or paper format.
Taxes
There is no payroll tax withheld at source in Brazil. Employers are responsible for making contributions to social security (INSS) on behalf of employees.
Employee INSS Contribution:
7.5% to 14% (capped amount)
Employer INSS Contribution:
20% (no cap)
Income Tax
Employees are responsible for filing their own annual income tax return directly with the Federal Revenue Service (RF).
Malaysia has standardized leave entitlements mandated by the Employment Act:
Annual Leave
Minimum of 30 days per year, paid at the employee's regular salary.
Vacation Bonus
An additional mandatory payment equal to 1/3 of the employee's gross monthly salary, paid in two installments (November and December).
Sick Leave
Up to 15 days per year with doctor's certification, extending to a year in specific cases.
Maternity Leave
Up to 120 days of paid leave for female employees, with an optional 60-day extension (unpaid).
Paternity Leave
5 days of paid leave for male employees, with an optional 15-day extension (unpaid) at the employer's discretion.
Public Holidays
10-12 paid public holidays per year.
Probationary Period
There's no mandatory probationary period in Brazil. However, employment contracts often include one, typically lasting between 30 and 90 days. During this time, termination can be easier for both employer and employee.
Termination of Employment
Termination of employment should follow the terms outlined in the contract or the CLT. Notice periods vary depending on the reason for termination and the employee's length of service. Severance pay may also be required under certain circumstances.
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