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Hiring in Brazil through an EOR (2026)

Here's what you need to know before you hire in Brazil: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.

21%Employer cost on top
R$1,621Minimum wage / mo
22 daysPaid annual leave
Days, not monthsTime to hire via EOR
Robbin Schuchmann
Written by:
Robbin Schuchmann
Co-Founder at EOR Overview
Last updated: August 5, 2026

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Brazil at a glance

The statutory facts that drive a hire in Brazil. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.

Pay & working time

Minimum wageper monthR$1,621DatedWageIndicator Foundation · 2026
Statutory work week44 hours/weekCurrentStatutory working time (national labour law) · 2024
Payroll cyclemonthlyCurrentResearch desk · 2026
13th-month salarymandatoryCurrentResearch desk · 2026

Employer cost & tax

Employer social securityof gross salary21%DatedISSA Country Profiles · 2024
Employee social securitywithheld from pay7.5%DatedISSA Country Profiles · 2024
Corporate tax rate34%AgingOECD · 2025

Termination

Notice period6.6 weeksCurrentWorld Bank Employing Workers / B-READY · 2019
Severance pay8.9 weeksCurrentWorld Bank Employing Workers / B-READY · 2019

Leave & time off

Paid annual leave22 daysCurrentResearch desk · 2026
Public holidays12 daysCurrentResearch desk · 2026
Maternity leave17.1 weeksCurrentResearch desk · 2026
Paternity leave0.7 weeksCurrentResearch desk · 2026

Labour market

Retirement age64DatedOECD Pensions at a Glance · 2024
Unemployment rate6%AgingWorld Bank Open Data · 2025
GDP per capita$10,713AgingWorld Bank Open Data · 2025
Union density13%DatedILOSTAT · 2019
Collective bargaining coverage64.8%DatedILOSTAT · 2020

Each row shows the year of the most recent citable source for that figure. Where a year looks old, that is the newest comprehensive source available, and we keep the sourced figure rather than substitute an unsourced newer one. Statutes may have changed since. Rows marked Research desk were filled by our research desk from primary sources where no institutional dataset publishes the figure; each carries the date it was checked and is re-verified on its refresh cycle.

What it costs to hire in Brazil

Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $11,000 a year actually costs you as the employer.

Gross annual salary$11,000
Employer contributions≈ 21% of gross+ $2,310
Total employment cost$13,310
Your EOR handles the filings

Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.

Income tax in Brazil

Income taxPaid by employee · progressive
$0 – $28,2590%
$28,259 – $37,5197.5%
$37,519 – $46,60415%
$46,604 – $55,97722.5%
$55,977 +27.5%
Employer contributions
Social security21%
Employee contributions
Social security7.5%

Employment-law essentials

The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in Brazil on your own.

Working time
Statutory work week44 hours/week
Pay & 13th salary
Minimum wageR$1,621
Payroll cyclemonthly
13th-month salarymandatory
Leave
Paid annual leave22 days
Public holidays12 days
Maternity leave17.1 weeks
Paternity leave0.7 weeks
Termination
Notice period6.6 weeks
Severance pay8.9 weeks

Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.

EOR vs. opening your own entity in Brazil

Use an EOR when…
You're hiring one to a handful of people in Brazil.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.

Choosing an EOR for Brazil

Providers with strong Brazil coverage onboard faster and carry less risk. A shortlist to start from:

Compare all EOR providers in Brazil

See our ranked best EOR providers in Brazil

Local players in Brazil

EOR and global-employment providers headquartered in Brazil:

Common questions about hiring in Brazil

Common questions about hiring in Brazil through an EOR.

Do I need a legal entity to hire someone in Brazil? +
No. An Employer of Record (EOR) already has a legal entity in Brazil and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in Brazil? +
On top of gross salary, employers in Brazil contribute roughly 21% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in Brazil? +
The statutory minimum wage in Brazil is R$1,621. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in Brazil? +
Ending employment in Brazil generally requires a notice period of around 6.6 weeks and severance of about 8.9 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in Brazil? +
Employees in Brazil are entitled to 22 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin Schuchmann
Robbin Schuchmann
Co-Founder at EOR Overview
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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