Hiring in Brazil – A Term Sheet for Hiring in South America’s Powerhouse

Bret Silverberg
by Bret Silverberg

Besides its fame for bossa nova beats, Brazil is South America’s hottest location for tech companies that want to sell into the southern hemisphere.  It’s a tough location full of red tape, but luckily, our Global Employer of Record platform makes it easy to hire in Brazil.  Top facts to know before you go:

  • Employer’s taxes:  Don’t underestimate the cost, which can be estimated at 70-80% for statutory benefits.  If you hire someone you plan to pay $100k/year, it will cost $175 by the time you pay payroll.
  • Salaries will automatically increase each year based on negotiations with labor unions.
  • Vacation Time:  after each 12 months of work, the employee is entitled to 30 days of paid vacation plus the equivalent of 1/3rd month’s salary as a bonus.
  • 13th month salary, holiday pay and holiday bonus are earned by an employee and prorated for partial years worked
  • Benefits: Employees are entitled to meal voucher, health insurance, life insurance, and transportation
  • FGTS (pension) accrual is payable at the end of the period of employment unless the employee resigns
  • Severance & Termination:  Employees in Brazil automatically earn severance payment at the end of their employment.
  • Legal issues:  our PEO in Brazil is highly valuable to clients because we are on your side.  We *know* we will be sued by an employee if the employee is fired and build those costs into our contract…which enables our clients to sleep at night.
Bret Silverberg

Bret Silverberg

Director, Content Strategy, Globalization Partners

Bret Silverberg joined Globalization Partners in April 2017. He has 10 years experience working in content marketing and publishing.