Brazil đ§đ·
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 weâve put together the following guide on how to navigate the process of hiring in Brazil.
![](https://a.storyblok.com/f/159312/2452x1240/1d77b10ccc/brazil.png/m/1226x620)
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:
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.
Payroll Timelines and Dates
Pay Frequency: Employee payroll is monthly, with 12 pay periods per year. Pay is distributed on the last business day of the month.Payroll Change Cutoff Dates: To meet payroll deadlines, any changes must be submitted to support@plane.com by the cutoff date. For Brazil, the payroll change cutoff date is on the last business day of the previous month. For example, changes to June payroll would need to be received no later than May 31, if May 31 is a business day.Plane sends payroll summaries to admins at the end of the second week of the month. After that, charges are automatically debited. Payroll summaries are also available to admins in their Plane accounts. Payday may vary based on country requirements.Â
Working Hours
The typical workweek for a full-time employee is capped at 44 hours per week. Typically, this is broken down into 8 hours per day, Monday to Friday, with a 4-hour shift on Saturday. However, a 5-day, 40-hour week is also common, with 8-hour workdays. If an employee works more than 44 hours per week, they are entitled to overtime payment at 1.5x their hourly salary and 2x their salary if on a Sunday or holiday. Brazilian Labor Code sets a limit on overtime hours, typically not exceeding 2 hours per day, unless specific conditions justify an extension. Alternatively, employers may use âbank hoursâ to compensate employees with rest time equivalent to the extra hours worked.Employees in managerial or direct supervisory positions are exempt from overtime.For workdays exceeding 6 hours, employees are entitled to a 1-hour lunch break. For workdays between 4 and 6 hours, a 15-minute break is required. Employees are also entitled to a minimum of 11 hours of rest between two workdays to ensure they have adequate time to recuperate.In Brazil, night work (typically work done between 10 PM and 5 AM) attracts additional compensation. Workers during these hours are entitled to a premium over the regular hourly rate, usually an additional 20%. The duration of a night hour is considered as 52 minutes and 30 seconds, not 60 minutes, which means employees working at night complete their standard work shift in less time compared to daytime workers.
Public Holidays
Brazil has 10 national public holidays:
- New Yearâs Day (Jan. 1)
- Tiradentesâ Day (Apr. 21)
- Good Friday
- Labor Day (May 1)
- Corpus Christi
- Independence Day (Sept. 7)
- Our Lady of Aparecida (Oct. 12)
- All Soulsâ Day (Nov. 2)
- Republic Proclamation Day (Nov. 15)
- Christmas (Dec. 25)
Compensation
We recommend using Plane's Remote Compensation Tool to check remote salary data in Brazil by job title.
Health Insurance Benefits
Brazil has a universal public healthcare system called the Unified Health System (Sistema Ănico de SaĂșde or SUS), which provides free healthcare to all Brazilian residents, including foreigners living in Brazil. The SUS covers a wide range of medical services, from routine check-ups to complex surgeries.To complement the public system, many employers in Brazil offer private health insurance as a benefit to their employees. Private health insurance typically provides quicker access to specialists, more choice regarding doctors and hospitals, and higher comfort levels in medical facilities. Itâs not common practice for employers to offer dependent coverage.Employers working with Plane must cover 100% of the cost of health, dental, and life insurance for employees hired in Brazil.Â
Sick Leave
Employees in Brazil are entitled to sick leave if they are unable to work due to illness or injury. Employers cover up to 15 days of paid sick leave. After the 15th day, employees may be entitled to social security payments if theyâve contributed enough to the Brazilian Social Security system. Some CBAs may require payments to supplement social security payments for additional sick leave.Employees must submit a medical certificate within a specified timeframe (often within 48 hours of the commencement of the sick leave) to both the employer and the Brazilian Social Security system.An employee cannot be dismissed while on sick leave or during the 60 days following their return to work.
Vacation Leave
Employees in Brazil are entitled to 30 days of paid vacation after completing 12 months of service with the same employer. This period of service is known as the "acquisition period."Once the acquisition period is completed, the employer has up to 12 months (known as the "concession period") to grant the vacation. Employees should be notified about their vacation at least 30 days in advance. Vacations cannot start two days before a public holiday or weekend. The vacation period can be taken in one stretch or, with the employee's consent, split into up to three periods, provided one of these periods is at least 14 days long and the others are not shorter than five days each.In addition to their regular salary during vacation, employees receive an additional 1/3 of their monthly salary as vacation pay. Employees can also request to convert up to 10 days of their vacation into cash as pay in lieu, a practice known as "abono pecuniårio."If the employer fails to grant the vacation within the concession period, they must pay double the vacation pay. This penalty is designed to discourage employers from delaying vacation.If an employee leaves the company, they are entitled to payment for the vacation time they accrued but did not take, including the additional vacation pay.
Maternity / Paternity / Parental Leave
Maternity leave lasts for 120 days starting from the date of a childâs birth, or 28 days before the expected date of birth. During maternity leave, an employee receives their full salary from the employer, who is reimbursed by the Brazilian Social Security system. Women are protected from being fired from the moment a pregnancy is confirmed until five months after childbirth.Paternity leave in Brazil is typically five days, paid by the employer. For companies in the Citizen Company (Empresa CidadĂŁ) program, maternity leave may last up to 180 days and paternity leave up to 20 days.Adoptive parents are entitled to 120 days of maternity leave as well.Brazil does not have a generalized parental leave policy that applies after maternity or paternity leave periods. However, some companies may choose to offer additional unpaid leave as an employee benefit.
Employment / Termination
Termination of employment in Brazil is governed by strict labor laws that aim to balance the rights of employees and employers. Please inform us at least 30 days in advance of any termination so that we can arrange the documentation and final payments in a timely manner.Notice period: In all cases, employer or employee must provide prior written notice of termination, typically 30 days. Employers may opt to pay a prior notice payment of 30 daysâ salary if terminating an employee same-day, or deduct payment in lieu of notice if an employee resigns with less than 30 daysâ notice. Pay date: Final pay is due within 10 days after an employeeâs last day of work. Severance Pay: Known as the FGTS (Fundo de Garantia do Tempo de Serviço), severance pay in Brazil operates as a fund to which employers must contribute 8% of an employeeâs salary on a monthly basis. Upon termination without cause, employees gain access to their FGTS fund, along with any additional fees towards their FGTS balance paid by the employer.The mandatory payments and benefits owed to employees vary based on contract type and the reason for the contractâs termination. In the case of termination by the employer of a permanent employee,
- Termination for Cause: The employee may lose their right to severance pay, including the 40% FGTSÂ balance. Valid reasons for termination for cause are specified in the Brazilian labor code and include acts like dishonesty, fraud, and disciplinary breaches.
- Termination without Cause: The employer must pay various severance benefits. These include to-date unpaid salary, pay for unused, accrued vacation days plus 1/3 of pay for those days for vacation pay, a prorated 13th month bonus, and a severance penalty of 40% of the employeeâs FGTS balance. In most cases, employees terminated through Plane will count as terminated without cause.Â
Hire Calculator
Tell us about your employee.
Enter details about your hire to get an estimated employment cost, including taxes.
Annual cost of employment*
0.00BRL
BRL
Salary | Taxes (32.65%) | Total | |
---|---|---|---|
Monthly | 0BRL | 0BRL | 0BRL |
Annual | 0BRL | 0BRL | 0BRL |
*rates for: July 23, 2024
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 moreHiring 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 the process of hiring an employee in Brazil. We'll keep you informed and up-to-date with the latest regulations and employment laws.Best of luck with your new hire, and welcome to Brazil!
Frequently Asked Questions
Here are the answers to some common questions about hiring employees in Brazil with Plane:
![Sunset over Rio de Janeiro, Brazil](https://a.storyblok.com/f/159312/6000x4000/b1603f78eb/sunset-over-rio-de-janeiro-brazil.jpg/m/208x112)
A Guide to Brazil Employment Laws for US Companies Hiring Abroad
Read More â![Mountains in Campos do JordĂŁo, Brazil](https://a.storyblok.com/f/159312/1920x1078/2903c03a04/mountains-in-campos-do-jordao.jpeg/m/208x112)
Brazil Vacation Laws: A Guide for US Companies Hiring Abroad
Read More â![Engaged new hire in white doing assigned onboarding tasks for remote employees on pink iMac](https://a.storyblok.com/f/159312/5187x3458/b0bed601c4/engaged-new-hire-in-white-doing-assigned-onboarding-tasks-for-remote-employees-on-pink-imac.jpg/m/208x112)