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Brazil

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Congratulations on your decision to hire employees in Brazil! As a country with a vibrant economy, diverse industrial sectors, and a vast pool of talented professionals, Brazil presents a wealth of opportunities for business expansion and growth in Latin America and beyond. Plane simplifies the hiring process for you by offering automated tax document collection, payroll, benefits administration, and more, while ensuring compliance and maximum efficiency. Still, hiring in a new country can pose certain challenges, so we’ve put together the following guide on how to navigate the process of hiring in Brazil.

Currency

BRL

Onboarding

3 to 4 weeks

Employer Cost

32.65%

Pay Frequency

Monthly

Public Holidays

10+

6 Considerations Before Hiring in Brazil

As an employer in Brazil, it is important to have a comprehensive employment contract that outlines the terms and conditions of the employment relationship. The contract should include need-to-know info on compensation, benefits, vacation time, and sick leave policies. Before onboarding a new employee in Brazil, take a moment to consider the following:

Does your employee have the right to work in Brazil?

You must check that your employee has the right to work in Brazil. Employees must either be Brazilian citizens or foreign nationals that have the appropriate work permits, usually either a permanent work visa (visto permanente) or an ITEM V Visa for temporary work.

All employees must complete a pre-hire check for immigration compliance, which includes a medical exam. Other checks may be permissible in certain circumstances.

Plane Recommendation

Plane helps you conduct a Right to Work verification check for any employees before you onboard them, and we can help you determine if you need to assist your new hire in obtaining any work permits or visas.

Brazilian employment is highly regulated

Will there be a probationary period? If so, for how long?

There is a mandatory 13th month bonus

Employers often match pension contributions

How does vacation work in Brazil?

Getting Started with Hiring in Brazil

Employment Contract

In Brazil, employment contracts are crucial for defining the terms and conditions of employment between an employer and an employee.

Employment contracts must comply with Brazilian labor law and any applicable collective bargaining agreements. Any terms in the employment contract that provide less than the legal minimum standards are considered void.

Employers may use two types of employment contracts:

Indefinite Contracts: The most common type of contract, it doesn't have a specified end date and offers job security to the employee.
Fixed-Term Contracts: Used for temporary work. Cannot be used continuously for more than 2 years.

Contracts may include special clauses such as probationary periods (no more than 90 days), confidentiality agreements, and non-compete or non-solicit clauses, which must be reasonable in terms of duration and scope to be enforceable.

Employment Contract

Payroll Timelines and Dates

Employer Tax Rates

Working Hours

Public Holidays

Compensation

Health Insurance Benefits

Sick Leave

Maternity / Paternity / Parental Leave

Vacation Leave

Employment / Termination

Hire Calculator

Get an instant, free estimate of how much it will cost to employ your next hire, including taxes.

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Once you have sorted out the details mentioned above, you can add the employee to the Plane platform. We provide a step-by-step workflow that shows what tasks need to be completed, as well as real-time updates and notifications. This way, you can stay on top of the hiring process at all times. With Plane, you can confidently hire, knowing that you have a powerful platform at your disposal to manage the entire process from start to finish. Here are the instructions for adding a new employee to the platform:

How to hire and onboard an employee

Plane offers a guided process for administrators and managers to hire and onboard their new employees.

Learn more

Hiring an employee in a new country can be a complex process, but with the right guidance and resources, it can be a smooth and successful transition. At Plane, we're committed to helping you navigate this process step-by-step. We'll keep you informed and up-to-date with the latest regulations and employment laws.

Frequently Asked Questions

Here are answers to some common questions about hiring employees outside of the US with Plane:

What is the relationship between my company and Plane?

Pilot Platform Inc (Plane) provides the product and service by helping you manage HR, payroll, and statutory requirements. Plane has its own entities and partners that are the EOR/legal employer where the employee is legally hired in the country. Plane and our partner do not manage the performance of the employees since we do not monitor or work directly with them.