Brazil
Ensure your HR practices in Brazil are up-to-date with Lerio's comprehensive legislative updates.
Hiring in Brazil at a glance
R$ / BRL
40 – 44 hours / week
12 holidays / year
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).
Portuguese
216M
R$1 412.00 / month
1st Jan – 31st Dec
Employment Tax
- Income taxes: 0% – 27.5%*
- Social Security Tax (INSS): 7.5% – 14% (capped at R$714 per month)**
*Calculated on multiple factors such as level of income and marital status. See tax rate below.
**Calculated on taxable income. See rates below
- Social insurance (INSS): 20% – 26.80%
- Severance Fund (FGTS): 8%
- Workers compensation insurance: 1%-3%
Income Tax
| Taxable Monthly Income | Tax Rate (%) | ||
| R$0 - R$1 903.98 | 0% | ||
| R$ 1 903.99 - R$2 826.65 | 7.5% | ||
| R$826.66 - R$3 751.05 | 15% | ||
| R$3 751.06 - R$4 664.68 | 22.5% | ||
| R$4 664.69 + | 27.5 |
Social Security Tax
| Taxable Monthly Income | Tax Rate (%) | ||
| R$0 - R$1 100 | 7.5% | ||
| R$1 100.01 - R$2 203.48 | 9% | ||
| R$2 203.49 - R$3 305.22 | 12% | ||
| R$3 305.23 - R$6 433.57 | 14% |
Employer of Record
in Brazil
As an Employer of Record, the ownership of ensuring compliance with Brazil’s tax and labour laws lays with us. This includes needing to have up to date knowledge and insight into all matters employment related, such as:
- Payroll and benefit administration
- Payroll processing
- Seasonal tax filing
- Payment of employment related taxes
- Providing accurate and timely payslips to employees
- Employment agreements
- Labour law
- Employee payroll queries
Employer of
Record Process
- Company
- Full legal name of prospective employee
- Employee contact details
- Employee nationality and residency status
- Proposed start date
- Right to work status
- Job title
- Working hours
- Job description and deliverables
- Salary information
- Benefit information
- Intellectual property and confidentiality agreement
- Terms of termination (e.g. notice period)
- Probation period
- EMployee bank details
- All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)
Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:
- Lerio
Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Brazil, tax information, etc.
- Employee
Signs employment agreement and submits required documents.
Umbrella Process
- Employee
Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes.
- Lerio
Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.
Lerio provides an invoice and statement to the company for each month.
- Company
Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.
Employee Benefits
- Social Insurance
- Pension
- Workers compensation insurance
- Disability retirement
- Unemployment insurance
- Imprisonment Allowance
- 13th month salary (one additional payment per year, usually at the end)
- Vacation bonus (usually deducted monthly and paid out when vacation is taken. Equates to ⅓ of a month’s salary)
- Transportation voucher: If an employee’s transport costs to and from work exceeds 6% of their salary, the company has to pay the amount above the 6%
- Daycare assistance (applicable if a company has more than 30 female employees). Companies must either have an allocated space for daycare or provide an allowance for daycare. Prices are calculated based on costs of daycares in the surrounding areas or through CBAs.
Non-mandatory
Employee Benefits
- Meal vouchers: Rechargeable card that can be used at restaurants. Daily amount depends on the city and the average cost of living.
- Food voucher: Similar to meal vouchers but are used at grocery shops rather than restaurants
- Private health insurance
- Private pension
- Life insurance
- Income protection
Employee Rights
- A safe and healthy work environment free from risk
- Protection from discrimination and sexual harassment
- Fair and just dismissals
- Protection of personal information
- Access to information such as company policies and codes of conducts
- Payslips showing all deductions and incom
- Right to join a union
- Transportation to and from work to be paid where it exceeds 6% of income
- 13th salary paid between November and February, if the full year was worked
- Equal pay for equal work
Leave
30 days per year, where at least one period is 14 continuous days and two periods are 5 continuous days.
Sick leave allocation is determined by a doctor, not a predetermined number of days.
0 – 15 days: Company pays employee 100%
16 days + : INSS pays employee with a cap of R$6 434 (INSS will only pay if employee has been with the company for min 12 months)
120 paid days off through INSS. Can be extended to 180 days if the company is part of the Empreea Cidada government scheme.
In addition: Paid time off for hospital visits and two 30 min breaks are allowed for breastfeeding once returned to work.
5 days paid by the company. Can be extended to 15 days if enrolled in the Empresa Cidada government scheme (government will cover these days’ cost).
In addition: 2 days’ paid leave to join partners for their medical appointments.
2 days paid leave in case of death of an immediate family member.
3 days paid leave to get married.
1 day paid per year.
1 day paid per year to attend medical appointments or accompany child to an appointment.
30 – 90 days
Probation
Optional and cannot be more than 3 months. Fixed-term contracts cannot have probation periods.
What is a work permit in Brazil?
Work permits are official documents from a country’s government that qualifies an individual to legally work and live in the country. However, this is a broad term and many countries require more than one official document and may use different terms to refer to these documents – but Brazil is not one of them. Essentially all terms are referencing documents that prove someone has been given the legal right to work and live in the country.
In Brazil, the term work permit is used, however it’s referred to as a permanent residence work permit in its entirety. A work visa can also allow someone to live and work in Brazil for up to 2 years without obtaining a work permit.
Who needs a work permit in Brazil?
Brazil requires everyone who is not a citizen or a permanent resident to go through a process of obtaining a work permit or work visa. Though many countries have agreements that allow reduced requirements for visiting and working for their citizens, Brazil does not have any of these listed that allows work without a work permit or work visa.
How long does it take to get a work permit in Brazil?
An estimated 2 months from when all the documents are received in the first stop.
Types of work visas in Brazil
- Temporary work visa
- Permanent residence work permit
The type of visa and permit available in Brazil that allows work both have largely the same eligibility requirements. The difference between the two is subtle and complex, see the Normative Resolution 1/2017 that outlines this here. General requirements are a) Offer of employment from a Brazilian company and b) Have specialised skills in a field that the company can show there’s a skills-shortage of in Brazil but specific requirements for different circumstances can also be found in the Normative Resolution 1/2017.
Application process in Brazil
Initiation of application
The employer or the employee can initiate the application through the General Coordination of Labor Immigration. There are specific rules that apply to certain industries. See these specifications here.
- Collect documents about the role, the company and the applicant
- Consult the Normative Resolutions to confirm which one applies and use that RN code when applying.
- Complete the Union Collection Form (GRU) on the MIGRANTEWEB portal
- Submit application form and supporting documents on MIGRANTEWEB portal
- Once approved, the applicant’s documents and notice of approval is transferred to the relevant embassy or consulate in their country. Even if this shows an approved permanent residence work visa, a temporary visa to enter Brazil must still be applied for.
Finish visa application
This is done by the applicant at the local embassy or consulate. Find local embassies and consulates here. Each consulate has their own workflow so be sure to check the local website. In general:
- Start an application through the Ministry of Foreign Affairs website.
- Submit the required documents for the application online at the relevant consulate.
- Make an appointment to go to the consulate
- At the appointment:
- Submit physical documents
- Pay application fee
- Once approved, passport with the visa will be returned to the applicant and they can now travel and work
Register as a foreigner in Brazil
After arrival in Brazil, foreigners need to register their visas and permits. Those with approved permanent residence work permit will obtain a National Migration Registration Card (CRNM) and a National Migration Registration number.
- This must be done within:
- 30 days for permanent residence work permits
- 90 days for temporary work visas
- Complete the form on the Federal Police online portal.
- Make an appointment to visit a Federal Police unit on the online portal while completing the form
- Attend the appointment. Register visas and permits at the appointment. For permits, they will refer to the Official Gazette of the Union (DOU) where an approved permanent residence work permit will be published and National Migration Registration Card (CRNM) and a National Migration Registration number will be arranged
- For permanent residence work permits only:
- Once the registration card is ready, a notification will be sent. The card is delivered to the same Federal Police Unit the appointment was at. On the notification, it will state whether an appointment to collect the card must be made or whether it can be picked up without an appointment.
What documents are required to apply for a work permit in Brazil?
Please note that documents may need to be translated into Portuguese depending on the department and country.
Application to the General Coordination of Labor Immigration
- Submit all of your required documents for a visa application to the General Coordination of Immigration Department as well.
- Proof that the company has given permission for the application to apply or vice versa depending on who is doing the application
- Clear criminal record
- Additional documents listed in the Normative Resolution 1/2017
- Description of the role
- Proof of applicant’s education and qualification that aligns to the role
- Proof of applicant’s experience that aligns to the role
- Proof that the company’s workforce is made up of at least two thirds Brazilian citizens
Visa Application
Requirements may vary based on the local consulate’s requirements
- Passport with at least 2 blank pages
- Proof of current residence
- Photo
- Apostilled or legalised birth certificate
- Police clearance
- Completed visa application form
- Proof of application fee payment
Register as a foreigner in Brazil
It’s advised to confirm with the local police unit the appointment is with what documents they would like to see.
- Passport
- Proof of approval of work permit, if applicable. Although they will already have proof of this, it’s advised to take it
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