From the bustling celebrations of Carnival to Rio de Janeiro's towering statue of Christ the Redeemer, Brazil's cultural wonders can certainly paint a vivid picture in your mind's eye.
But here's the thing: Brazil isn't just about culture — it's a thriving business powerhouse. With over 12,000 startups and counting, the country is a hotbed of innovation, attracting investment from local and global employers and increasing the demand for Brazilian talent.
However, to benefit from the country's skilled talent pool, businesses must also successfully navigate the Brazilian labor law landscape, including mandatory entitlements.
Key takeaways:
- New tax incentives demonstrate Brazil's dedication to ensuring a better business environment.
- Brazil's IT sector represents over a third of the industry's presence in Latin America.
- The Brazilian labor force is highly educated, with a literacy rate of approximately 95%.
Advantages of Hiring in Brazil
Brazil's IT market ranks 12th worldwide, representing over a third of the Latin American market.
What's more, the tech-savvy Brazilians powering IT work are often trilingual, with many fluent in English and Spanish in addition to Portuguese, making Brazilian talent appealing to global companies.
Let's look at some key facts about Brazil:
- Language: Portuguese
- Currency: Brazilian Real (BRL)
- Capital City: Brasília
- Population: 215 Million
- Cost of Living Rank: 92nd
A Reformed and Tech-Powered Business Environment
To improve the country's business environment, Brazil recently initiated the first phase of tax reform through simplified tax laws to boost Brazil's economic productivity.
With a literacy rate of just over 94%, Brazil boasts one of Latin America's most dynamically educated populations. You might benefit from powering your remote tech team with top Brazilian talent for roles like:
- Machine Learning Engineer
- Information Security Analyst
- Software Developer
- Internet of Things (IoT) Solutions Architect
- Cloud Support Engineer
- Device as a Service Specialist
Employment Laws: Hiring Compliantly in Brazil
Employment Contracts
The two most common types of Brazilian employment contracts are fixed-term and indefinite-term.
Indefinite-term contracts are the most common and don't have a specified end date.
Fixed-term contracts are generally used for projects that last up to two years. Additionally, temporary agreements may be used in specific circumstances for employment lasting up to 180 days.
Working Hours & Pay
Brazil's minimum wage is BRL 1,518 per month as of 2025. The standard workweek is 40 hours and can extend up to 44 hours per week for employees working a six-day schedule.
Overtime in Brazil is limited to two hours per day, and employees are paid 150% of their usual pay and at a rate of 200% for work performed on holidays and weekends.
Employees in Brazil are also entitled to 13th-month pay, equal to one month's salary, and distributed in two installments: the first in November and the second in December.
Probation Periods
Probationary periods in Brazil can last up to 90 days.
Employer Taxes
Employers are required to pay taxes of at least 34% of an employee's salary, and potentially more than 38%, to support programs including:
- Social Security: 20 - 22%
- Employees' Severance Indemnity Fund: 8%
- Work Accident Insurance: 1 - 2%
- Social Assistance: 5% - 6%
Termination Process & Severance Pay
For termination without just cause, employers must provide 30 days' notice, plus an additional three days for each year of service, up to 90 days maximum. Collective bargaining agreements may mandate longer notice periods.
Each month, employers must pay the equivalent of 8% of the employee's monthly salary into a holding account called a Severance Fund. If an employee is terminated, they receive the balance of the account. If the termination is without cause, the company must also pay the employee an additional 40% of the account balance.
Terminated employees are also entitled to their remaining salary balance, prorated 13th-month salary, accrued and unused vacation pay, and, when applicable, a prorated vacation bonus.
Paid Leave Laws in Brazil
Vacation and Holiday
Employees in Brazil are entitled to 30 days of annual leave after one year of employment. The employee can take up to three periods of time off, but one cannot be less than 14 consecutive days, and the others cannot be less than five consecutive days. Unused leave may not be carried over, although up to 10 days may be exchanged for cash.
Employees in Brazil receive additional paid time off for public holidays, including:
- New Year's Day
- Carnival
- Labour Day
- Constitutionalist Revolution of 1932
- All Souls' Day
Sick Leave
Employers must fully cover an employee's salary during the first 15 days of sick leave. If a doctor confirms the need for a more prolonged absence, Social Security takes over, providing salary coverage from the 16th day onward.
Maternity Leave
Pregnant employees are entitled to 120 days of paid maternity leave.
Paternity Leave
Employers in Brazil are responsible for providing fathers with five days of paid paternity leave.
Why Digital Nomads Love Brazil
Brazil's Digital Nomad Visa (VITEM XIV) allows global talent to work in Brazil for up to one year. The application requires proof of:
- Secured remote work
- A minimum income of at least USD 1,500 per month or a savings balance of USD 18,000 U
- Health insurance
- A valid passport
Compared to many parts of the world, Brazil's festive environment is surprisingly budget-friendly. Monthly rent for an apartment in Rio with a kitchen, laundry, and Wi-Fi can cost around USD 480. Dining out at a restaurant can cost less than USD 5 per meal.
Nomads wrapping up their first stay in Brazil who still meet the eligibility requirements can apply to extend their visa for one additional year.
How to Pay Remote Workers in Brazil
Wondering how to pay your remote team in Brazil?
Though they can be slow, bank wires offer the most security. PayPal is fast, but fees can add up. Wise can help you easily track the best exchange rates. Then there's crypto, which can be a roller coaster in terms of value and security.
Basically, when it comes to paying your Brazilian employees, you've got options.
However, if you're looking for a smooth, hassle-free way to manage it all, teaming up with an Employer of Record (EOR) can simplify your global payroll and remove the headache of making payments across borders.
Hire in Brazil with RemoFirst
As an EOR, RemoFirst simplifies hiring employees in 185+ countries and independent contractors in 150+ countries, including Brazil.
An EOR acts as an employee's legal employer, handling payroll, taxes, compliance with local labor laws, and other HR-related tasks, such as onboarding and employee benefits. This enables companies to access a global talent pool and expand their teams without worrying about potential employment law violations.
Book a demo to learn how RemoFirst makes global hiring a breeze.
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