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.