How to hire employees in Brazil

Shraddha Saxena
Struggling to navigate Brazil's complex hiring landscape? Uncertain about legal requirements and cultural nuances? Our comprehensive guide provides expert insights and strategies to streamline your hiring process, ensuring you attract top talent effortlessly.

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Brazil's rich and diverse talent pool, celebrated for its proficiency in tech and innovation, makes the country an attractive hiring destination. It boasts a robust base of skilled professionals, especially in fields like software development, engineering, and renewable energy. This positions Brazil as a hub for technical and creative expertise.

Moreover, the country's labor market is cost-effective, offering a unique advantage for businesses seeking quality talent at competitive prices

The blend of a skilled workforce and economic viability makes Brazil an ideal location for businesses looking to expand or establish global operations.

What you need to know before hiring employees in Brazil

Job market in Brazil

When exploring how to hire employees in Brazil, the following trends can help you hire cost-effectively and pay talent correctly. 

  • As of the third quarter of 2023, Brazil’s unemployment rate reached an all time low of 7.8%, indicating a workforce that’s high in demand.
  • The Brazilian labor market employs 100.2 million people employed, including a significant number in digital and communication sectors, Brazil demonstrates its readiness for the modern workforce. 
  • Brazil’s labor costs are lower than other talent markets in the region. Hiring employees in Brazil can lead to substantial cost savings. The average salary in Brazil is $22,500 compared to $65,000 in the United States, amounting to a significant $42,500 saving per hire.

The rise in average income and a thriving wage bill point towards a stable and growing economy, making Brazil an attractive destination for remote employment. As a result, companies seeking to hire employees in Brazil will find a competitive and skilled workforce, ready to meet the dynamic demands of the global job market.

Brazil Hiring Trends

In 2024, Brazil's hiring landscape is shaped by evolving employee expectations and the challenges and opportunities that emanate from these expectations. 

Workers, especially from the tech-savvy Gen-Z, are prioritizing workplaces that offer personal growth, skill development opportunities, and a strong alignment with their values, particularly around diversity and inclusion over the workplaces that offer attractive salaries. This shift signifies a more human-focused approach to employment, where understanding and meeting employee aspirations is key.

Employers in Brazil also face the challenge of adapting to economic fluctuations, including inflation, requiring more agile and flexible compensation strategies. Average wages have increased by 1.7% nationwide, implying that employers have to plan salary budgets accordingly when hiring in Brazil. However, employee costs are still far less than labor markets like the USA, UK and Singapore.

The 2024 job market in Brazil demands a balanced approach from employers, blending empathetic workplace cultures with adaptive operational strategies to meet the changing needs of a diverse workforce.

How to hire employees from Brazil

1. Set up an entity in the country

Establishing a legal entity in Brazil is ideal for businesses aiming for significant expansion or long-term presence. This allows for direct employee management and long-term cost benefits. The process involves selecting a business structure like a Limited Liability Company or Public Corporation, registering with the Junta Comercial, and obtaining a CNPJ for tax identification. 
However, this process can be complex and costly, demanding a deep understanding of Brazilian labor laws and efficient management of HR and payroll, highlighting the importance of thorough preparation or expert guidance.

2. Hire independent contractors

Engaging talent as contractors means entering into agreements with individuals or businesses for specific tasks or projects. This approach offers notable flexibility, ideal for short-term assignments or specific project needs. However, it's crucial to classify workers to avoid legal complications and potential fines accurately. Additionally, contractors might not exhibit the same degree of dedication or loyalty as in-house, full-time employees, which is an important factor to consider in this hiring model.

3. Partner with an EOR in the country

Utilizing an Employer of Record (EOR) service like Gloroots offers a streamlined pathway into Brazil's market, bypassing the intricacies of forming a legal entity. This approach significantly lowers liabilities and is cost-efficient. Partnering with an EOR  also guarantees adherence to Brazilian labor laws, tax requirements, and regulations, effectively minimizing legal risks and ensuring a compliant business operation.

Compliance risk while hiring in Brazil 

Brazil’s labor market is primarily governed by the Consolidation of Labor Laws (CLT) and the Brazilian Constitution. Hiring compliantly in Brazil requires a thorough understanding of its intricate legal framework .

Key Aspects of Brazilian Labor Law:

Employment Contract:

The employment contract  should detail both parties' names and addresses, employment start date, job location(s), job description, base wage plus any additional compensation or perks, working hours, annual leave, termination notice terms, probation period, and company policies on IT practicesWhile oral agreements are valid, written contracts are best practice. Contracts are typically permanent but can be for a set term, not exceeding two years, and must be in Portuguese. Salaries should be specified in Brazilian Real. References to collective bargaining agreements should also be included. 

Working Hours:

The standard workweek is 40 hours, generally 8 hours per day.


Any work beyond 8 hours a day is considered overtime, compensated at 150% of the hourly wage. However, a daily limit of 2 hours overtime is allowed, making a maximum of 10 hours per day.

Minimum Wage:

The national minimum wage is BRL 1,302 per month (as of February 2023), with an increase to BRL 1,320 scheduled for May 2023. Some states have higher regional minimum wages.
Non-compliance with these regulations can lead to significant legal and financial repercussions. Employers must ensure adherence to labor laws, especially regarding contract formalities, wage regulations, working hours, and overtime compensation. 

Payroll laws in Brazil

In Brazil, employees have the option to receive their salaries either once or twice per month. According to the law, monthly wages must be disbursed by the 30th of the current month or no later than the 5th day of the ensuing month, whichever is earlier.

Employment benefits in Brazil

Leave Policies in Brazil

1. Paid Time Off:

In Brazil, employees are entitled to a minimum of 30 days of paid holiday each year, after completing one year of service, in addition to public holidays. The leave pay includes the monthly salary plus a one-third bonus and is paid two business days before leave starts. Under the Labor Reform, paid leave can be split into three parts, with one stretch not less than 14 days and the others a minimum of five days each.

2. Public Holidays:

There are 13 national holidays in Brazil, with additional regional holidays varying by location.

3. Sick Days:

In Brazil, if an employee is absent due to illness, the first 15 days of sick leave are compensated by the employer at the regular pay rate, provided a medical certificate is submitted on time. For sick leave extending beyond 15 days, the employee is eligible to receive a fixed-rate sickness benefit from Social Security.

4. Maternity Leave:

Female employees in Brazil are eligible for 120 days of paid maternity leave, which can commence up to 28 days before the expected delivery date. Employers have the option to extend this leave by up to 60 additional days, with a tax refund available for the extra payment. Additionally, employers must accommodate necessary time-offs for pregnant employees.

5. Paternity Leave:

Male employees are entitled to five days of annual paternity leave. There is also a provision for an extra 15 days of paid parental leave, with employers being able to offset this cost through tax breaks from the government.

Public Health Insurance 

Brazil's Unified Health System ensures that all Brazilian citizens and legal residents have access to complimentary healthcare services. This system extends to every employee in Brazil, regardless of their job status, offering a range of medical services like surgeries, hospitalizations, and medications, all at no cost.

Filing tax in Brazil

Income Tax:

In Brazil, the income tax rates vary depending on the income bracket, starting with a 0% rate for lower income levels. For instance, incomes between BRL 22,847.77 and BRL 33,919.80 are taxed at 7.50%, and the rate progressively increases for higher income brackets, reaching up to 27.50% for the highest earners. For a detailed breakdown of Brazil's tax structure, including specific rates and brackets, visit our comprehensive guide.

Other Tax and Social Security Contributions:

In Brazil, employers and employees are subject to various payroll contributions. Employers typically contribute between 20.00% and 24.50% for Social Security (INSS), 8.00% to the Employees Severance Indemnity Fund (FGTS), and around 5.8% to Terceiros, which are contributions to social programs. 

Additional costs include vacation bonuses and various vouchers, such as meal and transportation, leading to a total employment cost ranging from 36.58% to 41.08% plus additional fixed amounts. 

On the employee side, payroll contributions range from 7.50% to 14.00% of the salary, depending on the income bracket. For a complete overview of the tax and social security contributions in Brazil, please refer to our detailed guide.

Business culture in Brazil

  • In Brazil, business interactions are often with individuals rather than organizations, emphasizing the importance of personal connections.
  • Engaging in casual conversations is key to fostering positive relationships with Brazilian business partners, which generally evolve into more informal interactions over time.
  • Handshakes are a common greeting among men in Brazil.
  • It's best to avoid discussing sensitive topics such as politics, religion, or poverty during business interactions.
  • Familiarizing oneself with these local customs is crucial for navigating the Brazilian market successfully, reducing stress, and enhancing business prospects.

Top sectors to hire from in Brazil

Service Sector

With a substantial 69.68% share of the workforce, the service sector is a primary area for employment, encompassing a wide range of services, including retail, trade, and public administration.

Retail and Trade

This sector emerges as a significant employer, legally employing nearly 11.63 million people, making it a vibrant area for job opportunities.

Public Administration

 Marking its prominence, public administration employs over 7.78 million people, highlighting its role in the employment market.

Transportation and Logistics

Showing an uptrend in employment, this sector now employs over 2.6 million people, accompanied by an increase in the number of related companies.

Finance and Insurance

 These sectors have seen growth in employment, with the workforce reaching around 1.4 million, reflecting the sector's expansion and the rising number of companies.

Industry Sector

 Accounting for 20.63% of employment, the industry sector remains a vital part of Brazil's economy, offering substantial hiring opportunities.

Top cities to hire from Brazil

São Paulo:

A leading tech hub in Latin America, boasts a rich pool of tech professionals, including data scientists and AI specialists. Its vibrant startup ecosystem, government support, and venture capital access make it an ideal location for tapping into innovative talent and the thriving Latin American innovation ecosystem.

Belo Horizonte: 

Belo Horizonte is rapidly emerging as a key tech hub in Brazil, known for its vibrant workforce and attractive incentives for tech companies, including tax breaks and grants. The city boasts several renowned universities and tech schools, fostering a pool of tech professionals who are adept and up-to-date with the latest in technology. 

Hire in Brazil  compliantly with Gloroots

Gloroots, as an Employer of Record (EOR) in Brazil, offers a streamlined solution for these challenges. Their EOR platform accelerates candidate onboarding, ensuring swift operational initiation while adhering to local and global compliance standards. Designed for companies of all sizes, it simplifies payroll management, benefits administration, and tax handling, thus bypassing the need for a local entity. This allows companies to focus on building a remote team in Brazil efficiently. For more information on how Gloroots can facilitate your Brazilian hiring needs, please contact us.

Frequently Asked Questions 

1. How much does it cost to hire an employee in Brazil?

In Brazil, payroll costs encompass basic salary, various allowances, contributions to the Brazilian Social Security (INSS), and regional taxes. Additional hiring expenses include advertising for the position, potential joining bonuses, and costs associated with onboarding new employees. It's important for employers to recognize that these hiring costs can vary significantly depending on the specific skill set, work experience, and the geographical location of the job within Brazil. Understanding these nuances is crucial for effective budgeting and financial planning in the Brazilian job market.

2. What is an employee’s minimum salary in Brazil?

The national minimum wage is 1,320 Brazilian reals

3. Where can I hire employees from Brazil? 

In Brazil, major cities like São Paulo, Rio de Janeiro, Belo Horizonte, Brasília, and Porto Alegre are prime locations for sourcing talent, particularly for roles in technology and innovation. Employers often engage in campus recruitment, job fairs, and walk-in interviews in these urban centers to attract potential candidates. Additionally, online job portals play a significant role in the Brazilian hiring landscape. Platforms such as Catho, InfoJobs, and LinkedIn are widely used by companies to find and connect with prospective employees. These cities, known for their dynamic workforce and business opportunities, are ideal starting points for businesses seeking to build a skilled and diverse team in Brazil.

4. How to find talent in Brazil?

Finding talent in Brazil, a diverse and dynamic job market, involves utilizing a range of resources and strategies. Here are some effective ways to source skilled professionals in Brazil:

1. LinkedIn: This global platform is extensively used in Brazil for professional networking and job searches. Companies can post job openings, search for candidates, and leverage LinkedIn's vast network to connect with industry professionals.

2. Vagas: One of Brazil's oldest and most established hiring platforms, Vagas is home to over 17 million registered candidates. It offers numerous features, including profile creation, job searching, and email alerts for job openings, making it a comprehensive tool for both job seekers and employers.

3. Catho: A prominent job portal in Brazil, Catho caters to various sectors and provides a range of services, including resume-building and career advice, alongside job listings. It's a valuable resource for employers looking for tailored recruitment solutions.

4. Indeed: As a global job search engine, Indeed's Brazil-specific site aggregates job listings from multiple sources. Its user-friendly interface makes it easy for employers to post jobs and for job seekers to apply, streamlining the hiring process.

5. Careerjet: This popular job site in Brazil allows employers to reach a large pool of potential candidates. It facilitates direct communication with job seekers, enhancing the recruitment process.

In addition to these platforms, employers in Brazil can also leverage other methods such as networking events, university collaborations for campus recruitment, and partnerships with local recruitment agencies. These approaches can complement online job portals, providing a holistic strategy to tap into Brazil’s rich talent pool. For international companies, employing the services of an Employer of Record (EOR) like Gloroots can further simplify the process, offering expert guidance on local employment laws and hiring practices.

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