Hire in Brazil Quickly and Compliantly with Stipenda

Expanding your business into Brazil? Stipenda helps you save time and reduce costs by enabling you to hire in Brazil without establishing a local entity. Our Employer of Record (EOR) solution streamlines onboarding, payroll, immigration, and benefits, ensuring you can hire employees swiftly and compliantly.

What is an Employer of Record in Brazil?

An Employer of Record (EOR) in Brazil acts as the legal employer for your employees based in Brazil. By partnering with an EOR, you transfer all employment responsibilities, including payroll, benefits, taxes, and compliance, to a trusted local expert. This allows you to focus on your core business operations while avoiding the complexities of Brazilian labor laws.

Comprehensive Guide to Hiring in Brazil

Hiring in Brazil

Employment Agreements

While not mandatory, a written employment contract in Brazil is highly recommended to clarify key terms, including:

• Remuneration: Clearly defined salary and payment terms.
• Job Description: Detailed role and responsibilities.
• Working Hours: Standard hours and expectations.
• Place of Work: Primary work location.
• Probationary Period: Maximum of 90 days, potentially split into two periods.
• Contract Type: Fixed-term or indefinite-term.
• Company Policies: Applicable rules and guidelines.
• Travel and Transfers: Conditions for travel or relocation.

Without a written contract, many terms may not be legally enforceable.

Standard Employment Terms

Certain terms are universally acknowledged and don’t require written inclusion:

• Minimum Wage: R$1,320 per month as of May 2023.
• Annual Leave and Vacation Bonus: Standard entitlements.
• 13th-Month Salary: Mandatory bonus paid in two installments.
• Severance Indemnity Fund (FGTS): Employer contributions required.
• Weekly Day Off: Paid rest day each week.
• Social Security Contributions: Employer and employee responsibilities.
• Collective Bargaining Agreements: Additional benefits as applicable.

Average Working Hours in Brazil

Brazilian law mandates a standard workweek of 44 hours, typically eight hours per day.

How an Employer of Record (EOR) Helps You Hire in Brazil

An EOR simplifies the hiring process by managing local compliance, payroll, and HR functions, allowing you to engage top talent without the need for a local entity. Stipenda, a leading EOR in Brazil, ensures your hiring processes are compliant and efficient, letting you focus on scaling your business.

Payroll in Brazil

Payroll Cycles

Brazil typically follows biweekly or monthly payroll cycles.

Wages

As of May 2023, the national minimum wage is R$1,320 per month, with variations in regional minimum wages.

Bonus Payments

Brazilian law requires a 13th-month salary and a vacation bonus of one-third of a month’s salary.

Overtime

Overtime is any work beyond eight hours a day and is paid at a minimum of 50% above the regular hourly rate, increasing to 100% for work on Sundays or holidays.

How an EOR Manages Payroll in Brazil

An EOR like Stipenda ensures compliant payroll management, including accurate pay and tax withholdings, secure data handling, and cost-effective payroll solutions. This enables you to focus on business growth while maintaining compliance.

Taxes in Brazil

Tax Deadlines

Brazil’s tax year aligns with the calendar year, with individual taxes due by May 31.

Tax Residency and Rates

Individuals are considered tax residents after 184 days in Brazil and are taxed on worldwide income. The 2023 income tax brackets range from 7.5% to 27.5%. The corporate tax rate is 15%, and social security rates vary by income bracket.

How an EOR Handles Taxes in Brazil

Stipenda’s EOR services include comprehensive tax management, ensuring compliance with Brazilian tax laws. We handle payroll taxes, tax filings, and ensure accurate tax withholdings, providing peace of mind and reducing administrative burdens.

Health Insurance in Brazil

Public and Private Healthcare

Brazil’s public healthcare system (SUS) offers free medical care to residents, but private health insurance is often preferred for faster and higher-quality services.

Pensions in Brazil

Eligibility

Employees are eligible for pensions based on age and contributions:

• Women: Minimum 62 years old with 180 months of contributions.
• Men: Minimum 65 years old with 240 months of contributions.

How an EOR Supports Pension Compliance

Stipenda’s EOR services ensure your employees’ pension contributions are accurately calculated and compliant with local regulations, supporting their long-term financial security.

Why Choose Stipenda as Your Employer of Record in Brazil?

Stipenda’s EOR services in Brazil provide a seamless solution for international businesses looking to expand without the complexities of setting up a local entity. By partnering with Stipenda, you gain access to a centralized platform for payroll and HR management, secure data protection, and significant time and cost savings.

Ready to Expand Your Business in Brazil?

If you’re looking to grow your business in Brazil, an EOR can make the process smooth and straightforward. Contact us to learn more about how EOR services can help you:

Email: sales@stipenda.com Europe: +44 (0) 330 380 0161 US: +1 800 910 7847

Discover how an EOR in Brazil can be the key to your successful market expansion.