Lerio — Contractor Ops Agent

Partner with Lerio to keep employment in Brazil legally sound — contracts, payroll and statutory benefits handled against the live rule set.

CurrencyPayroll

All compensation is paid in BRL (R$). Cross-border funding is converted at the daily rate on the pay date.

Working hoursSchedule

The standard week is 40 – 44 hours / week. Hours beyond the statutory limit are treated as overtime and typically paid at a premium.

Paid leaveTime off

Statutory time off is 12 holidays / year, in addition to nationally observed public holidays.

Payment frequencyCadence

The most common payment frequency is bimonthly and monthly. By law, employees must be paid at least once a month. Frequency is largely dependent on the company and their CBA (collective bargaining agreement).

Minimum wageFloor

The statutory minimum is R$8. Lerio blocks any contract drafted below the floor.

Tax yearCalendar

The Brazil tax year runs Jan – Dec. Year-end filings are prepared automatically.

Every figure below is modelled, not memorised — and traceable to its source via the calculator on the right.

Employee taxes

withheld from gross

Employee Taxes

withheld from gross

Personal Income Tax (IRRF )

Monthly Taxable Income (BRL)

Tax Rate (%)

Up to 29,146

9,146 to 33,920

7.5%

33,921 to 45,013

15%

45,014 to 55,976

22%

Above 55,976

27.5%

Employee Social Security (INSS)

Description

Tax Rate

INSS cap is BRL 951.63/month whenever the salary is equal to or higher than BRL 8,157.41

0.2

Employer taxes

on top of gross

Employer Tax

on top of gross

INSS Contribution

Description

Tax Rate (%)

Applied to all annual gross income

20%

FGTS Contribution

Description

Tax Rate (%)

Applied to all annual gross income

RAT

Description

Tax Rate (%)

Applied to all annual gross income

1D — Sistema S / Terceiros

Description

Tax Rate (%)

Applied to all annual gross income

5.8%

13th Salary Tax

Description

Tax Rate (%)

One full additional month's salary paid to every employee annually. Cannot be contracted away. Attracts full employer contributions on top.

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Rates are indicative and depend on individual circumstances. Run a salary through the calculator for a full breakdown, or ask the compliance agent for a citable figure.

Hiring in Brazil is modelled by Lerio; reach out to compliance for the current Employer-of-Record path.

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Brazil is the largest economy in Latin America, with a diverse labor market across technology, finance, agriculture, manufacturing, and services. Expanding into Brazil offers access to a large talent pool and strategic positioning in South America.However, Brazil has complex labor laws, high payroll taxes, and strict compliance requirements. Establishing a local entity can be costly and time-consuming. An Employer of Record (EOR) in Brazil allows companies to hire employees legally without a local entity. The EOR acts as the legal employer, managing HR, payroll, taxes, and compliance, while the client company controls day-to-day employee activities.<h3 class="bn-inline-content">Key Benefits of Using an EOR in Brazil</h3><ul><li>Quick Market Entry – Onboard employees in Brazil without forming a subsidiary.</li><li>Compliance Assurance – Navigate Brazilian labor laws, tax regulations, and social security contributions.</li><li>Payroll Management – EOR handles salaries, mandatory benefits, and employer contributions.</li><li>Reduced Risk – Minimize exposure to fines, labor disputes, and misclassification penalties.</li><li>Access to Talent – Tap into Brazil’s skilled workforce, particularly in tech, finance, and customer service.</li><li>Cost Efficiency – Avoid the administrative burden of entity setup and local HR operations.</li></ul><h3 class="bn-inline-content">How EOR Works in Brazil</h3>The EOR in Brazil becomes the legal employer, responsible for:<ul><li>Drafting and maintaining employment contracts compliant with Brazilian labor law.</li><li>Processing payroll and handling income tax (IRRF), social security (INSS), and other statutory contributions.</li><li>Administering mandatory benefits, including vacation, 13th salary (Christmas bonus), and severance obligations (FGTS).</li><li>Ensuring compliance with Brazilian labor law (CLT) regarding working hours, overtime, and termination.</li><li>Handling HR administration, employee onboarding, and liaison with authorities.</li></ul>The client company retains control over daily work assignments, performance, and operational direction.<h3 class="bn-inline-content">Compliance and Employment Regulations in Brazil</h3><ul><li>Working Hours: Standard full-time is 44 hours per week; maximum of 8 hours per day. Overtime is limited to 2 hours/day and paid at 150% of the normal hourly rate.</li><li>Minimum Wage (2025): R$1,518/month (~€1.24/hour). Regional variations may apply.</li><li>Paid Leave: Employees are entitled to 30 days of annual paid leave, plus public holidays.</li><li>13th Salary: Mandatory annual bonus equivalent to one month’s salary.</li><li>Social Security: Employers contribute 20% to INSS, plus FGTS contributions of 8% of salary.</li><li>Termination Rules: Strict regulations for severance pay; dismissals require formal procedures to avoid disputes.</li><li>Probationary Periods: Up to 90 days.</li></ul><h3 class="bn-inline-content">Why Choose an EOR in Brazil?</h3><ul><li>Rapidly hire employees anywhere in Brazil without establishing a legal entity.</li><li>Ensure full compliance with labor laws, taxes, and payroll requirements.</li><li>Reduce administrative and legal risks associated with cross-border hiring.</li><li>Access skilled professionals in Brazil’s growing technology and service sectors.</li><li>Focus on business growth while the EOR manages HR, payroll, and compliance.</li></ul>An Employer of Record in Brazil is the ideal solution for international companies looking to expand in Latin America, enabling compliant hiring, reduced risk, and streamlined access to local talent.

What Lerio handles

✓

Compliant local contract

Drafted to Brazil labour law, in Portuguese and English, with the statutory clauses pre-filled.

✓

Onboarding & payroll setup

Tax registration, social-security enrolment and the first pay cycle, configured in BRL.

✓

Ongoing compliance

Document expiries, minimum-wage changes and America regulatory updates watched continuously.

✓

Statutory benefits

Leave, public holidays and mandatory contributions administered automatically.

Typical timeline

via EOR

Day 0

Offer accepted. Candidate details enter Lerio; the contract drafts itself from the Brazil template.

Day 1–3

Contract signed. Local registrations and benefit enrolment begin in parallel.

Day 3–7

Ready to work. Equipment, access and the first payroll run are scheduled.

Monthly

Steady state. Payroll, filings and compliance run on autopilot with a human approval gate.

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Not yet live for EOR. Lerio models Brazil, but direct hiring may need setup — the compliance agent can confirm the path.

Statutory benefits in Brazil, plus the supplemental coverage teams usually add.

Mandatory

✓

Pension

✓

Health insurance

✓

Unemployment insurance

✓

Time off

Commonly added

optional

✓

Supplemental coverage

<h3 class="bn-inline-content">Statutory / Mandatory Benefits in Brazil</h3>Brazilian labor law is governed by the Consolidation of Labor Laws (CLT) and social security regulations:<ul><li>Paid Annual Leave (Férias) – 30 calendar days per year after 12 months of employment, plus ⅓ additional vacation pay.</li><li>Public Holidays – 12 national holidays (paid if on a workday; regional holidays may apply).</li><li>Working Hours – Standard 44 hours/week, 8 hours/day; overtime paid at 50% extra, 100% on Sundays/holidays.</li><li>Paid Sick Leave –<ul><li>First 15 days: paid by employer at 100% of salary.</li><li>From day 16 onward: paid by INSS (social security) at ~91% of average salary.</li></ul></li><li>Maternity Leave – 120 days paid (can extend to 180 days for companies participating in “Empresa Cidadã” program), at 100% salary.</li><li>Paternity Leave – 5 days paid; some companies extend to 20 days.</li><li>Parental Leave / Adoption Leave – Adoption leave mirrors maternity/paternity leave entitlements.</li><li>13th Month Salary (Décimo Terceiro Salário) – Mandatory annual bonus equal to one month’s salary.</li><li>Social Security Contributions (INSS) – Employers contribute ~20% of payroll; covers pensions, health, and unemployment.</li><li>Severance / Termination –<ul><li>Employees terminated without cause are entitled to FGTS (8% of monthly salary paid to a fund) plus fines and notice period (30 days + 3 days per year of service).</li></ul></li><li>Unemployment Insurance – Paid via social security (FGTS and insurance contributions).</li><li>Occupational Health & Safety – Employers must comply with NRs (Normas Regulamentadoras), provide medical exams, and ensure workplace safety.</li></ul><h3 class="bn-inline-content">Common Employer-Provided Benefits in Brazil</h3>Employers often enhance statutory requirements to attract talent, particularly in finance, tech, and multinational companies:<ul><li>Private Health Insurance – Most common corporate benefit; often includes dental and family coverage.</li><li>Meal / Food Allowances (Vale Refeição / Vale Alimentação) – Daily or monthly allowances; highly widespread.</li><li>Transportation Allowances (Vale Transporte) – Reimburses commuting costs; mandatory but often supplemented.</li><li>Performance Bonuses – Annual, quarterly, or project-based incentives.</li><li>Flexible / Remote Work – Hybrid and fully remote options increasingly common.</li><li>Professional Development – Training budgets, certifications, and language courses.</li><li>Wellness Programs – Gym memberships, wellness stipends, mental health support.</li><li>Life & Disability Insurance – Group life, accident, or disability coverage.</li><li>Stock Options / Equity Plans – Offered in startups and multinational firms.</li><li>Extra Paid Leave – For birthdays, volunteering, or special company events.</li><li>Employee Discounts / Perks – Retail, travel, and lifestyle perks.</li><li>Relocation Assistance – Housing, flights, and visa support for international hires.</li></ul>

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Lerio benchmarks each package against live America data — open the comp agent to see where an offer lands.