Employer of record services in Brazil

Yes. We manage compliance with the CLT (Consolidação das Leis do Trabalho), including FGTS severance fund contributions (8% of salary paid monthly by the employer), INSS social security contributions, 13th salary payments, and vacation pay with the mandatory one-third bonus. We also handle eSocial reporting, the digital system Brazil uses to consolidate labor, tax, and social security obligations, which is mandatory for every registered employer.

Meal vouchers (vale-refeição) and transport vouchers (vale-transporte) are close to market standard even though not always strictly mandatory, and most competitive employers also provide private health and dental plans, since Brazil’s public healthcare system (SUS) is not the norm for salaried professionals. Life insurance and a home-office allowance for remote staff have also become common in Brazil’s tech and services sectors since 2021.

Brazil’s statutory notice period is 30 days, plus an additional three days for every year of service up to a maximum of 90 days. Termination without cause also triggers FGTS withdrawal rights, a 40% penalty on the accumulated FGTS balance paid to the employee, and other termination payments. Brazil has one of the higher-risk labor litigation environments globally, so getting the exit calculation and paperwork right is critical to avoiding claims at the labor courts.

An EOR can typically onboard an employee in Brazil within one to two weeks, compared with the two to four months commonly needed to incorporate a local entity, obtain a CNPJ tax number, and register with the labor and tax authorities required before running compliant payroll. Given how document-heavy Brazilian entity registration is, this time saving is one of the biggest reasons companies choose an EOR for their first Brazil hires.

Brazil’s CLT labor code is detailed and enforcement-heavy, with strict rules on termination, FGTS, and mandatory benefits that carry real litigation risk if mishandled. An EOR takes on the legal employer role and the associated compliance liability, so you can hire in Brazil without incorporation costs or an in-country legal and payroll team, and can scale down quickly if plans change, which is far harder to do with your own entity.