How to hire remote employees in

Brazil

Brazil is one of the most popular countries in the world to hire remote talent: It has a population of more than 200M people and a workforce that likes looking for remote work abroad. Want to know how you can hire there, in minutes, without wading into a months-long procession of legal paperwork? We’re about to teach you how.

Country snapshot

CURRENCY
Brazilian Real (BRL)
EMPLOYER TAXES
36.8%
PAYROLL FREQUENCY
Bi-Weekly
OFFICIAL LANGUAGE
Portuguese

What to know before you hire in 

Brazil

Found some great remote talent in Brazil, but slightly more confused about how to hire that talent? Simply put, you’ve got two options: Hiring talent as employees, or hiring talent as contractors. Here are the big differences between the two.

If you want to successfully hire in 

Brazil

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Brazil

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Brazil

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Brazil

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Brazil

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Brazil

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Brazil

?

If you’re hiring contractors in 

Brazil

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Brazil

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Brazil

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Brazil than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Brazil.

Taxes in 

Brazil

Employer tax

Social Security (INSS)

Guarantee Fund

Third Party Companies

Accident Insurance

Individual tax

Leave

Paid Time Off (PTO)

PTO is calculated by the:

  • If an employee has been employed for 12 months, they are entitled to 30 days of paid annual leave.
  • The leave must be taken within the following 12 month period.
  • Leave can be taken on 3 different occasions, where one of the periods must be at least 14 days and the other two must be at least 5 days.
  • Annual leave cannot be taken 2 days before a holiday or weekend.
  • Employees are able to cash in 1/3 of their annual leave and receive a holiday bonus in lieu.

Public Holidays

There are 13 national holidays.  Other additional holidays may apply depending on the region.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • For the first 15 days of illness, the employer pays 100% of the employee’s salary.  
  •  From the 16th day onward, social security pays for the leave (up to 6,101 BRL).

Maternity Leave

Female employees are entitled to 120 days of paid maternity leave and extension by a maximum of 4 weeks on medical grounds (two weeks prior and two weeks after birth). Maternity leave is paid at 100% of the regular wages by the employer, however, the employer can claim payment back through deductions on social security payments.

If the employer is enrolled in the government scheme (Empresea Cidada), maternity leave can be extended to a total of 180 days.

Paternity Leave

Fathers are entitled to 5 days paid paternity leave. Pay is 100% of regular wages and is paid by the employer. If the employer is enrolled in the government scheme (Empresa Cidada), paternity leave can be extended to 20 days.

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

None.

Marriage Leave

3 days.

Bereavement Leave

Death of a parent, child, or spouse- 2 days

Termination

Termination Process

Employment contracts can be terminated at any time, as long as the proper notice is given.

Employees who are exempt from this are those that fall under union representatives, members of the Internal Committee for Accidents Prevention (CIPA), pregnant employees, employees with work-related injuries, and employees who fall under certain collective agreements.

Termination must be communicated in writing.

Notice Period

The notice period in Brazil is:

Notice is only required in certain cases.

Termination of the employment agreement initiated by the employer:

  • Up to 1 year of employment- 30 days’ notice
  • Over 1 year of employment- 30 days’ notice + 3 additional days for each year worked (up to a maximum of 60 additional days)

Termination initiated by the employee:

  • The employee must give 30 days’ notice. If the termination is initiated during the probation period, the employee may request to be released earlier than the 30 days.

Termination under mutual consent:

  • The notice period is halved.

Severance Pay

The Severance Pay in Brazil depends on:

The amount of severance pau varies based on how the employment agreement is terminated.

When severance is required, the employee is entitled to one month’s wages for every year employed.

Employers contribute 8% to the Severance Fund (FGTS), and when the employee is dismissed by the employee, 4o% of the balance is paid as a termination fine. When the termination falls under mutual consent, 20% of the balance is paid out.

Probation Period

The probation period is 45 days but can be extended to 90 days.

Employee requirements in 

Brazil

Working Hours

A full-time workweek is 44 hours or 8 hours per day.

A one hours rest period is required for employees who work more than 6 hours per day.

Overtime

Overtime is limited to up to 2 hours per day.  Any hours worked in excess of 8 per day is considered overtime and is paid at the rate of 150% of the regular pay.

Employees can be exempt from overtime pay if:

  • They perform activities that are not compatible with defined working hours and are completed within a company’s facilities
  • They are an employee in a trust position
  • The employee works from home

Work on a holiday is paid at the rate of 200% of the regular pay.

Want to hire contractors, anywhere? Start with Panther today for $0.

Start for $0
No credit card required