Brazil has Latin America's biggest talent pool, and its most protective labor code. The all-in cost of an employee is roughly 1.7x their gross salary, and the courts take a hard line on disguised employment. Here is what to know before your first hire.
Formal employment runs under the CLT (Consolidação das Leis do Trabalho): a written contract in Portuguese, a registered employment record, capped working hours, and strong termination protections. There is no lightweight at-will option; the CLT is the deal, and hiring through an EOR means the CLT is our problem, not yours.
Brazil has the heaviest statutory load in the region: roughly 72% on top of gross salary once every mandatory charge and accrual is counted.
The 13th is one extra month of pay, split across November and December, and pro-rated on termination. Vacation adds one-third of a month on top of the 30 days of paid leave. Both are law, not perks; state clearly in offers whether a quoted salary includes them.
Employees pay INSS at 7.5-14% on a progressive scale and income tax from 0% to 27.5%*. Withholding is the employer's job, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant CLT contract, payroll, 13th salary, FGTS, and benefits - handled. One invoice, flat $399/month.