Brazil is one of the most dynamic and promising countries in Latin America for companies looking to hire in Brazil and build remote teams. As the region’s largest economy with a well-established tech ecosystem and a large, highly educated workforce, Brazil offers global companies a strategic opportunity to hire in Brazil with skilled talent while optimizing costs.
This guide provides everything you need to know to hire in Brazil—from salary benchmarks and hiring models to labor laws, compliance, and employment contracts. Whether you’re looking to hire a few remote engineers or establish a legal entity, this guide will walk you through the process step by step when you hire in Brazil.
Why Hire in Brazil
When you hire in Brazil, you combine a massive talent base, time zone alignment, and digital infrastructure to support global hiring needs.
Skilled Talent Pool
- Over 100,000 new technology graduates annually
- Strong university system with top programs in engineering, IT, and finance
- High volume of bilingual professionals, particularly in tech, marketing, and customer service when you hire in Brazil
Cost-Effective Salaries
- Salary levels 50–70% lower than in the U.S. for comparable roles when you hire in Brazil
- Lower operational costs in secondary cities like Recife, Curitiba, and Porto Alegre
- Significant savings on employment costs while accessing top talent
Time Zone Alignment
- Operates on GMT-3, overlapping with U.S. Eastern and Central Time zones
- Enables real-time collaboration with North American teams when you hire in Brazil
Remote Work Readiness
- Strong broadband coverage across urban areas (over 80% internet penetration)
- Mature remote work culture, especially in technology and digital services
- Professionals you hire in Brazil are well-equipped for remote collaboration
Cultural Compatibility
- Western business norms and strong alignment with U.S. corporate practices
- Adaptable, collaborative work style with high levels of creativity and innovation when you hire in Brazil
Government Support
- Investment in tech education and digital transformation
- Supportive programs through SENAI, SEBRAE, and state-level initiatives to boost innovation and entrepreneurship for companies that hire in Brazil
Key Market Stats When You Hire in Brazil
| Statistic | Details |
|---|---|
| Official Language | Portuguese (English proficiency growing, especially in tech and business roles) |
| Time Zone | GMT-3 (overlaps with U.S. Eastern and Central Time) |
| Currency | Brazilian Real (BRL) |
| Population | ~215 million (2025 estimate) |
| Internet Penetration | Over 80%, with strong infrastructure in major cities |
| Labor Force | ~110 million, with large talent pools in tech, finance, and customer service |
| STEM Graduates | ~100,000 per year |
| Major Talent Hubs | São Paulo, Rio de Janeiro, Belo Horizonte, Curitiba, Porto Alegre, Recife |
| Minimum Wage (2025) | BRL 1,500/month (approx. USD $300) |
| Remote Readiness | High—especially in tech, design, and digital service roles |
Top In-Demand Roles When You Hire in Brazil
Brazil’s workforce spans a broad range of professional skill sets when you hire in Brazil, with particularly strong representation in the technology, business services, and digital industries.
Software Development
- Front-end Developers (React, Angular, Vue)
- Back-end Developers (Node.js, Python, Java, PHP)
- Full-stack Developers
- Mobile App Developers (Android, iOS)
- DevOps Engineers
- QA Engineers and Testers
- AI and Machine Learning Engineers
- Blockchain Developers
Sales & Marketing
- Sales Development Representatives (SDRs)
- Account Executives
- Digital Marketing Specialists
- SEO/SEM Experts
- Social Media Managers
- Content Creators (copywriting, video editing)
Professional Services
- Accountants and Bookkeepers
- Financial Analysts
- HR Specialists and Recruiters
- Administrative Assistants
- Project Managers
Customer Support & Operations
- Customer Service Representatives
- Technical Support Agents
- Virtual Assistants
- Operations Coordinators
- BPO Professionals
Employment benefits play a crucial role in attracting and retaining top talent when you hire in Brazil, including health insurance, paid leave, and retirement plans under Brazilian labor law.
Monthly Salary Ranges When You Hire in Brazil (USD)
Below are average monthly gross salaries in USD for popular roles when you hire in Brazil, categorized by experience level. Rates may vary by region, skill set, and language proficiency.
| Role | Entry Level | Mid-Level | Senior Level |
|---|---|---|---|
| Full-stack Developer | $1,500 – $2,200 | $2,300 – $3,200 | $3,300 – $4,500 |
| Front-end Developer | $1,300 – $1,900 | $2,000 – $2,800 | $2,900 – $4,000 |
| Back-end Developer | $1,400 – $2,000 | $2,100 – $3,000 | $3,100 – $4,300 |
| Machine Learning Engineer | $1,800 – $2,600 | $2,800 – $3,800 | $4,000 – $5,200 |
| Blockchain Developer | $1,600 – $2,300 | $2,400 – $3,400 | $3,500 – $4,800 |
| Data Engineer | $1,500 – $2,200 | $2,400 – $3,300 | $3,400 – $4,600 |
| UX/UI Designer | $1,200 – $1,800 | $1,900 – $2,600 | $2,700 – $3,500 |
| Product Manager | $1,500 – $2,200 | $2,300 – $3,200 | $3,300 – $4,500 |
| Technical Support Specialist | $900 – $1,200 | $1,300 – $1,700 | $1,800 – $2,400 |
| Customer Success Manager | $1,100 – $1,500 | $1,600 – $2,100 | $2,200 – $2,900 |
| Accountant (Tech-focused) | $1,000 – $1,400 | $1,500 – $2,000 | $2,100 – $2,700 |
| Talent Acquisition Specialist | $1,100 – $1,500 | $1,600 – $2,100 | $2,200 – $2,800 |
Employers must make payroll deductions from an employee’s monthly salary when they hire in Brazil, including income tax and social security contributions.
3 Ways to Hire in Brazil
Companies that hire in Brazil can choose from three common models depending on their goals, risk profile, and long-term strategy.
1. Hiring Independent Contractors in Brazil
Independent professionals who manage their own taxes and benefits. Best suited for short-term or project-based work when you hire in Brazil.
PROS
- Quick setup, lower cost, no need for a legal entity
- Flexibility for project-based work
- Minimal administrative burden
CONS
- Risk of misclassification under Brazilian labor law
- Limited control over work arrangements
- No statutory benefits provided
Key Considerations: When hiring independent contractors in Brazil, it’s essential to understand the implications of the employment relationship under Brazilian labor law. Misclassification of workers can lead to significant legal and financial penalties, including fines, back wages, benefits, and back taxes. Companies should ensure that their contractors are genuinely independent, with control over their work schedule and methods.
2. Employer of Record (EOR) to Hire in Brazil
An EOR acts as the legal employer, handling compliance, payroll, and HR, while you manage daily operations when you hire in Brazil.
PROS
- Legally compliant with CLT (Consolidação das Leis do Trabalho)
- Quick hiring without local entity setup
- Full benefits management included
- Reduced administrative complexity
CONS
- Service fees add to employment costs
- Less direct control over employment terms
Key Considerations: Using an EOR when you hire in Brazil is a popular choice for companies that want to hire remote employees without the complexities of setting up a local entity. The EOR model allows businesses to focus on their core operations while leaving the complexities of payroll, tax compliance, and employment contracts to the EOR provider.
3. Local Entity Setup to Hire in Brazil
Establishing a legal company in Brazil allows you to directly hire in Brazil with talent and manage operations internally.
PROS
- Full control over hiring and operations
- Strong brand presence in the market
- Ideal for long-term growth and scaling
- Direct management of employment contracts
CONS
- Complex registration process (4-8 weeks)
- Higher setup and ongoing compliance costs
- Requires understanding of CLT and labor regulations
Key Considerations: Setting up a local entity when you hire in Brazil is a strategic move for businesses aiming for long-term growth and a significant presence in the market. This model provides full control over hiring practices, employment contracts, and employee benefits. However, understanding permanent establishment implications is crucial to avoid unexpected tax obligations.
Employment Compliance and Contracts When You Hire in Brazil
Brazil has one of the most detailed labor systems in Latin America. When you hire in Brazil, employment is governed by the Consolidação das Leis do Trabalho (CLT), which regulates contracts, benefits, terminations, and compliance.
Brazilian Labor Law Basics
- Employment relationships are governed by CLT
- All employees must be registered in eSocial (government payroll and tax platform)
- Employers must issue signed work contracts detailing key terms and benefits when they hire in Brazil
Types of Employment Contracts
| Contract Type | Description | Use Case |
|---|---|---|
| Indefinite-Term Contract | Most common for ongoing roles | Permanent positions |
| Fixed-Term Contract | Up to 2 years, used for temporary projects | Project-based work |
| Intermittent Contract | For irregular work, paid only for hours worked | Seasonal or variable work |
Statutory Benefits When You Hire in Brazil
Employers who hire in Brazil must provide these mandatory benefits:
| Benefit | Details |
|---|---|
| Paid Vacation | 30 days of paid vacation per year |
| 13th-Month Salary | Paid in two installments: November and December |
| Transportation Voucher | Mandatory unless waived by employee |
| Meal/Food Allowance | Often part of collective agreements |
| Paid Leave | Sick leave and maternity/paternity leave |
| FGTS | Severance fund contributions (8% of salary) |
| Severance Pay | Required for dismissals without cause |
Working Hours and Leave
- Standard Week: 44 hours per week (usually 8 hours/day)
- Overtime Pay: 150% on weekdays, 200% on Sundays/holidays
- Paid Leave: National holidays, vacation, and medical leave
- Maternity Leave: 120 days paid
- Paternity Leave: 5 days paid (can be extended to 20 days in some cases)
Payroll Contributions When You Hire in Brazil
| Contribution | Employer | Employee |
|---|---|---|
| INSS (Social Security) | Varies by salary | 7.5% – 14% |
| FGTS (Severance Fund) | 8% | – |
| Risk Insurance | 1% – 3% | – |
| Total Employer Cost | ~26% – 30% | – |
Employers who hire in Brazil contribute to social security (INSS), FGTS, and risk insurance, while employees contribute to INSS through payroll deductions.
Entity Setup to Hire in Brazil
Establishing a legal entity when you hire in Brazil allows companies to hire employees directly and operate long-term.
Legal Structures
| Structure | Description | Best For |
|---|---|---|
| LTDA (Sociedade Limitada) | Most popular, offers limited liability and flexibility | Small to medium enterprises |
| S.A. (Sociedade Anônima) | For larger corporations with complex structures | Large enterprises seeking capital |
| MEI (Micro Entrepreneur) | Simplified tax regime | Individual entrepreneurs, very small businesses |
Registration Steps to Hire in Brazil
- Register with Commercial Registry: Ensure all documentation is compliant with local regulations
- Obtain CNPJ (Tax ID): From Receita Federal for all financial and legal transactions
- Register with eSocial, FGTS: Ensure compliance with employment and tax regulations
- Set Up Tax Books: Digital and physical for accurate financial records
- Open Corporate Bank Account: For payroll and tax payments (Banco do Brasil, Bradesco, Itaú, Santander)
Timeline: Typically 4–8 weeks depending on region and document readiness.
Key Consideration: Understanding permanent establishment is critical. Engaging in activities that generate revenue or having a fixed presence in Brazil can trigger local corporate tax obligations when you hire in Brazil.
Ongoing Compliance When You Hire in Brazil
Companies that hire in Brazil must maintain strict compliance across employment, tax, and regulatory matters.
Annual Tax and Reporting Obligations
| Requirement | Frequency | Details |
|---|---|---|
| SPED/eSocial Declarations | Monthly | Tax and employment reporting |
| IRPJ (Corporate Income Tax) | Annual | Corporate income tax filing |
| CSLL (Social Contribution) | Annual | Social contribution on profits |
| Financial Statements | Annual | Digital bookkeeping to Receita Federal |
Payroll and Social Security
- Monthly payroll must include all deductions and contributions (INSS, FGTS, IRRF)
- eSocial platform is mandatory for payroll reporting when you hire in Brazil
- Employers must generate pay stubs and keep employment records up to date
Risk Mitigation
- Use formal contracts and detailed documentation
- Stay up to date on collective bargaining agreements and local employment norms
- Work with local legal and accounting partners to reduce exposure to fines and labor claims when you hire in Brazil
Data Protection Compliance (LGPD)
The Brazilian General Data Protection Law (LGPD) regulates the collection, storage, and use of personal data when you hire in Brazil:
- Data Consent: Obtain explicit consent before collecting employee data
- Adequate Notice: Provide employees with clear information about data processing
- Data Security: Implement measures to protect against breaches
- Penalties: Significant fines for non-compliance
Employers who hire in Brazil must comply with LGPD when collecting and processing employee data to protect privacy and avoid penalties.
Employee Termination When You Hire in Brazil
Employee terminations when you hire in Brazil must follow specific procedures under CLT and can involve significant financial obligations.
Grounds and Procedures
| Termination Type | Notice Required | Severance |
|---|---|---|
| With Just Cause | Immediate | None (for serious misconduct) |
| Without Just Cause | 30 days + 3 days/year (max 90 days) | Full package |
| Resignation | 30 days (or pay in lieu) | Limited benefits |
| Mutual Termination | Written agreement | Reduced (20% FGTS penalty) |
Severance Package (Without Just Cause)
When you hire in Brazil and later terminate without cause, severance includes:
- FGTS balance + 40% penalty on FGTS deposits
- Pro-rated 13th salary
- Unused vacation pay + 1/3 vacation bonus
- Any applicable bonuses
- Notice period payment (if not worked)
Mutual Termination
- Allowed by law (Article 484-A CLT)
- Reduces FGTS penalty to 20% and cuts severance by half
- Requires written agreement and mutual consent
Key Considerations: Incorrect termination procedures can result in reinstatement claims or legal penalties when you hire in Brazil. Documentation and legal review are highly recommended for every dismissal.
Frequently Asked Questions About Hiring in Brazil
How much does it cost to hire in Brazil?
The cost to hire in Brazil is highly competitive globally. The minimum wage is BRL 1,500/month (approximately $300 USD) as of 2025. Skilled professionals in technology, engineering, and finance typically earn between $1,300-$5,200 USD monthly depending on experience and role. Employers must budget for mandatory costs including INSS contributions, FGTS (8% severance fund), risk insurance (1-3%), 13th-month salary, 30 days vacation, and transportation/meal vouchers. Total employer costs are approximately 26-30% above base salary. Overall, companies save 50-70% compared to North American hiring when they hire in Brazil.
What is the best way to hire employees in Brazil?
The best way to hire in Brazil depends on your timeline and long-term strategy. For rapid market entry without a legal entity, using an Employer of Record (EOR) is ideal as they handle all CLT compliance, payroll, eSocial registration, and benefits within days. For project-based or temporary work, hiring independent contractors offers flexibility (though misclassification risks exist). If you’re planning long-term operations with multiple employees, establishing a local entity (LTDA is most common) provides full control. Most companies start with an EOR to test the Brazilian market before committing to entity formation.
Can I hire remote workers in Brazil without a local entity?
Yes, you can hire in Brazil without establishing a local entity by using an Employer of Record (EOR) service or hiring independent contractors. An EOR acts as the legal employer under CLT, managing all compliance including payroll, eSocial registration, INSS contributions (varies by salary), FGTS deposits (8%), 13th-month salary, 30 days vacation, and mandatory benefits while you direct daily work. This allows you to compliantly hire full-time employees in Brazil within 3-7 business days. Contractors manage their own taxes, though proper classification is critical to avoid misclassification penalties and legal liability.
What are the labor laws I need to know when hiring in Brazil?
When you hire in Brazil, key labor laws under CLT include: a 44-hour standard workweek, 30 days of paid vacation annually, 13th-month salary paid in November and December, mandatory FGTS contributions (8% of salary), transportation and meal vouchers, 120 days paid maternity leave, 5 days paternity leave (extendable to 20 days), and severance pay for termination without cause (FGTS balance + 40% penalty, unused vacation, pro-rated 13th salary). All employees must be registered in eSocial. Overtime is paid at 150% (weekdays) and 200% (Sundays/holidays). Collective bargaining agreements may add additional requirements.
How long does it take to hire employees in Brazil?
The timeline to hire in Brazil varies by method. Using an Employer of Record (EOR), you can hire employees in as little as 3-7 business days once candidates are selected. Hiring contractors is even faster, typically 1-3 days after contract agreement. However, if you’re establishing a local entity first, the process takes approximately 4-8 weeks, including registering with the Commercial Registry, obtaining a CNPJ from Receita Federal, registering with eSocial and FGTS, setting up tax books, and opening a corporate bank account. After entity setup, individual hiring proceeds within 1-2 weeks.
What is the minimum wage in Brazil?
The minimum wage in Brazil for 2025 is BRL 1,500 per month (approximately $300 USD), set by the federal government. However, skilled professionals in high-demand sectors like software development, data engineering, machine learning, digital marketing, and customer support typically earn significantly above minimum wage, ranging from $1,300-$5,200 USD monthly depending on experience, specialization, and language proficiency. Brazil produces 100,000 STEM graduates annually, providing access to highly qualified talent. Major tech hubs like São Paulo, Rio de Janeiro, and Curitiba command higher salaries than secondary cities.
Do I need to pay taxes when I hire in Brazil?
Yes, when you hire in Brazil, you must comply with several tax obligations under CLT. Employers contribute varying percentages to INSS (social security) based on salary brackets, 8% to FGTS (severance fund), and 1-3% for risk insurance, totaling approximately 26-30% of gross salary. You must also withhold income tax (IRRF) from employee wages based on progressive rates and remit it to Receita Federal. Monthly reporting through eSocial is mandatory. If you establish a local entity, you’ll be subject to IRPJ (corporate income tax), CSLL (social contribution on profits), and various other taxes. An EOR handles all these obligations.
What are the benefits of hiring in Brazil vs other Latin American countries?
Hiring in Brazil offers several unique advantages over other Latin American countries. Brazil has the largest economy and labor force in Latin America with 110 million workers and 100,000 STEM graduates annually, providing unmatched talent depth. The GMT-3 time zone provides excellent overlap with U.S. Eastern and Central time for real-time collaboration. Brazil’s mature tech ecosystem in São Paulo, Rio de Janeiro, and other hubs rivals any in the region. Strong government support through SENAI, SEBRAE, and innovation programs fosters entrepreneurship. Cost savings of 50-70% compared to North America, combined with high internet penetration (80%), well-established labor protections (CLT), and cultural alignment with Western business practices make Brazil a premier destination for remote teams.
Conclusion: Ready to Hire in Brazil?
Brazil is a top-tier destination for companies looking to hire in Brazil and expand remote or in-country teams in Latin America. The country offers deep talent pools with 110 million workers and 100,000 STEM graduates annually, highly educated professionals, time zone compatibility with North America (GMT-3), and a mature remote work environment with over 80% internet penetration.
While Brazil’s labor regulations under CLT are more complex than in some neighboring countries, they provide structure and protections that—when understood and navigated properly—create a solid foundation for long-term hiring success when you hire in Brazil.
Companies can hire in Brazil via contractors, an EOR partner, or by forming a local legal entity (LTDA most common). The right model depends on your growth stage, hiring volume, and compliance needs. Understanding key requirements—including eSocial registration, FGTS contributions (8%), INSS payments, 13th-month salary, 30 days vacation, and CLT compliance—ensures successful hiring practices.
Start your journey to hire in Brazil today and unlock access to Latin America’s largest and most sophisticated talent market, where you can build high-performing teams while reducing costs by 50-70% compared to North American hiring.