Hire in Brazil

Brazil is one of the most dynamic and promising countries in Latin America for building 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 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.

Why Hire in Brazil

Brazil combines 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

Salary expectations in Colombia Cost-Effective Salaries

Time Zone Alignment

  • Operates on GMT-3, overlapping with U.S. Eastern and Central Time zones

  • Enables real-time collaboration with North American teams

Remote Work Readiness

  • Strong broadband coverage across urban areas

  • Mature remote work culture, especially in technology and digital services

Cultural Compatibility

  • Western business norms and strong alignment with U.S. corporate practices

  • Adaptable, collaborative work style with high levels of creativity and innovation

Government Support

  • Investment in tech education and digital transformation

  • Supportive programs through SENAI, SEBRAE, and state-level initiatives to boost innovation and entrepreneurship

  • Government programs and initiatives contribute to business growth by fostering innovation and entrepreneurship, enhancing creativity and problem-solving through cultural diversity, and opening doors to the larger Latin American market.

Key Market Stats 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

Regional Holidays

Local observances that vary by state or municipality, reflecting cultural or historical significance. Employers must recognize and accommodate these alongside national public holidays.

Top In-Demand Roles in Brazil

Brazil’s workforce spans a broad range of professional skill sets, with particularly strong representation in the technology, business services, and digital industries. The country’s robust education system and innovation ecosystem have helped create one of Latin America’s most advanced talent markets.

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 in these in-demand roles. In Brazil, various types of employment contracts, such as the Intermittent Contract, ensure that workers retain employment benefits even when classified differently. Proper classification is essential to guarantee that employees receive their entitlements under Brazilian labor law, which includes benefits like health insurance, paid leave, and retirement plans. This not only helps in compliance with legal requirements but also enhances job satisfaction and loyalty among employees.

Monthly Salary Ranges (USD)

Below are average monthly gross salaries in USD for popular roles 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, including income tax based on tax brackets and social security contributions, highlighting the financial responsibilities of both parties.

Hiring Models

Companies hiring in Brazil can choose from three common models depending on their goals, risk profile, and long-term strategy.

Independent ContractorsIndependent professionals who manage their own taxes and benefits. Best suited for short-term or project-based work.

  • Pros: Quick setup, lower cost, no need for a legal entity

  • Cons: Risk of misclassification, limited control, no statutory benefits

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. This includes legal and administrative costs, as well as fines, back wages, benefits, and back taxes. Companies should ensure that their contractors are genuinely independent, with control over their work schedule and methods. Additionally, independent contractors are responsible for their own income tax and social security contributions, which can be a benefit for employers looking to reduce administrative costs.

Employer of Record (EOR) An EOR acts as the legal employer, handling compliance, payroll, and HR, while you manage daily operations.

  • Pros: Legally compliant, quick hiring, no local entity needed

  • Cons: Service fees, less direct control over employment terms

Using an EOR 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. This model is particularly advantageous for companies looking to hire remote workers across multiple regions in Brazil, as the EOR handles all regional employment laws and regulations.

Local Entity SetupEstablishing a legal company in Brazil allows you to directly employ talent and manage operations internally.

  • Pros: Full control, brand presence, ideal for long-term growth

  • Cons: Complex registration, higher setup and ongoing costs, compliance management required

Setting up a local entity 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, aligning with the company’s global team strategy. However, it requires a thorough understanding of Brazil’s employment laws, tax compliance, and administrative costs. Companies must be prepared to invest in legal and administrative support to navigate the complexities of establishing and maintaining a local entity in Brazil. Additionally, understanding the local labor laws and collective bargaining agreements is crucial for ensuring fair compensation and employee satisfaction.

Employment Compliance and Employment Contract

Brazil has one of the most detailed labor systems in Latin America. 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

Types of Employment Contracts

  • Indefinite-Term Contract: Most common for ongoing roles

  • Fixed-Term Contract: Up to 2 years, used for temporary projects

  • Intermittent Contract: For irregular work, paid only for hours worked

Statutory Benefits

  • 30 days of paid vacation per year

  • 13th-month salary (paid in two installments: November and December)

  • Transportation voucher (mandatory unless waived)

  • Meal or food allowance (often part of collective agreements)

  • Paid sick leave and maternity/paternity leave

  • FGTS (severance fund) contributions

  • Severance pay: Critical for employees dismissed without cause, supporting their transition to new employment and ensuring job security under Brazilian labor laws

Working Hours and Leave

  • Standard: 44 hours per week (usually 8 hours/day)

  • Overtime: Paid at 150% on weekdays and 200% on Sundays/holidays

  • Paid leave includes national holidays, vacation, and medical leave

Payroll Contributions

  • Employers contribute to social security (INSS), FGTS, and risk insurance

  • Employees contribute to INSS through payroll deductions

Labor Laws and Regulations

Brazilian labor laws are governed by the Consolidation of Labor Laws (CLT), which outlines the rights and obligations of employees and employers. The CLT regulates working hours, minimum wage, overtime pay, and social security contributions, among other aspects of employment. Employers must also comply with collective bargaining agreements (CBAs) and local labor laws, which may vary depending on the region and industry. Additionally, employers must ensure that they are providing fair compensation and benefits to their employees, including paid annual leave, vacation bonus, and unemployment insurance. It is essential to understand the labor laws and regulations in Brazil to ensure compliance and avoid potential risks, such as misclassification of employees or independent contractors. By adhering to these regulations, employers can foster a fair and compliant work environment.

Employee Rights and Protections

Brazilian employees are entitled to various rights and protections under the law, including job security, fair compensation, and safe working conditions. Employers must provide employees with a written employment contract that outlines the terms and conditions of employment, including working hours, salary, and benefits. Employees are also entitled to paid leave, including annual leave, sick leave, and maternity leave. The Brazilian government has implemented various laws and regulations to protect employees’ rights, including the Federal Constitution and the Brazilian Labor Code. Employers must comply with these laws and regulations to ensure that they are providing a safe and fair work environment for their employees. By doing so, employers can enhance job security and employee satisfaction, contributing to a more stable and productive workforce.

Entity Setup

Establishing a legal entity in Brazil allows companies to hire employees directly and operate long-term. This process involves understanding the various legal structures available and the necessary steps for registration and compliance.

Legal Structures

  • LTDA (Sociedade Limitada): This is the most popular legal structure, offering limited liability and flexibility in management. It is suitable for small to medium-sized enterprises looking to operate with a straightforward setup and management process.

  • S.A. (Sociedade Anônima): Ideal for larger corporations with more complex structures and those planning to raise capital through public or private offerings. This structure requires a more rigorous setup and compliance process but provides more opportunities for growth and investment.

  • MEI (Micro Entrepreneur): This structure is used primarily for local contractors or very small businesses. It offers a simplified tax regime and lower administrative requirements, making it an attractive option for individual entrepreneurs or small partnerships.

A critical aspect to consider when setting up a legal entity in Brazil is the concept of permanent establishment. Engaging in activities that generate revenue or having a fixed presence in Brazil can trigger permanent establishment, leading to local corporate tax obligations and potential legal penalties. Global companies must understand this concept to avoid fines and ensure compliance with Brazilian labor laws.

Registration Steps

To successfully establish a legal entity in Brazil, companies must navigate several registration steps:

  • Register the company with the Commercial Registry, ensuring all necessary documentation is in order and compliant with local regulations.

  • Obtain a CNPJ (Tax ID) from Receita Federal, which is essential for all financial and legal transactions.

  • Register with eSocial, FGTS, and social security agencies to ensure compliance with employment and tax regulations. This step is crucial for managing payroll and employee benefits.

  • Set up digital and physical tax books to maintain accurate records of all financial transactions and ensure transparency in reporting.

  • Open a local bank account for payroll and tax payments, which is necessary for processing employee salaries and meeting tax obligations.

Corporate Banking

Having a corporate bank account is essential for processing payroll and paying taxes. Companies can choose from major banks such as Banco do Brasil, Bradesco, Itaú, and Santander. Setting up a corporate bank account requires proof of registration, company bylaws, a CNPJ, and identification of the legal representative. This account will facilitate smooth financial operations and ensure compliance with Brazilian financial regulations.

Overall, setting up a legal entity in Brazil can provide companies with the necessary framework to hire employees directly and manage their operations effectively. Understanding the legal structures and registration requirements is crucial for a successful and compliant business presence in the country.

Ongoing Compliance & Management

Companies operating in Brazil must maintain strict compliance across employment, tax, and regulatory matters.

Annual Tax and Reporting Obligations

  • Monthly tax declarations via SPED and eSocial

  • Annual tax filings for corporate income tax (IRPJ) and social contribution on profits (CSLL)

  • Delivery of financial statements and digital bookkeeping to Receita Federal

  • Consideration of tax deductions in financial planning and management of employee benefits, such as financing additional maternity leave through company tax deductions and contributions

Payroll and Social Security

  • Monthly payroll must include all deductions and contributions (INSS, FGTS, IRRF)

  • eSocial platform is mandatory for payroll reporting

  • 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

Immigration and Visa Requirements

Foreign employees working in Brazil must comply with the country’s immigration and visa requirements. The Brazilian government has implemented various visa categories, including work visas, residence visas, and tourist visas. Employers must ensure that their foreign employees have the necessary visas and permits to work in Brazil. Additionally, employers must comply with the local labor laws and regulations, including the requirement to hire Brazilian employees for certain positions. It is essential to understand the immigration and visa requirements in Brazil to ensure compliance and avoid potential risks, such as fines and penalties. By adhering to these requirements, employers can ensure a smooth and lawful employment process for their foreign employees.

Data Protection and Privacy

The Brazilian government has implemented the General Data Protection Law (LGPD), which regulates the collection, storage, and use of personal data. Employers must ensure that they are complying with the LGPD when collecting and processing employee data, including personal and sensitive information. Employers must also ensure that they are providing employees with adequate notice and consent when collecting and processing their data. The LGPD imposes significant fines and penalties for non-compliance, making it essential for employers to understand the law and ensure that they are complying with its requirements. By complying with the LGPD, employers can protect their employees’ personal data and avoid potential risks, such as data breaches and cyber attacks. This compliance not only safeguards employee privacy but also enhances the company’s reputation and trustworthiness.

Employee Termination

Employee terminations in Brazil must follow specific procedures under CLT and can involve significant financial and administrative obligations.

Grounds and Procedures

  • With Just Cause: Permitted for serious misconduct (e.g., dishonesty, negligence, violence). Requires documentation and immediate notice.

  • Without Just Cause: Most common. Requires 30-day notice or pay in lieu and full severance compensation.

  • Resignation: Employees may resign with prior notice (usually 30 days) or pay in lieu.

Severance and Notice Periods

  • Notice: 30 days, plus 3 days per year of service (up to 90 days total)

  • Severance Includes:

  • FGTS balance + 40% penalty on FGTS deposits

  • Pro-rated 13th salary

  • Unused vacation pay

  • Any applicable bonuses

  • Termination Without Just Cause: Triggers full severance package and FGTS penalty payment

  • Standard Notice Period: For termination without cause, the standard notice period is 30 days. Employees have the right to challenge dismissals they perceive as unjust, discriminatory, or in violation of labor laws.

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 ConsiderationsIncorrect termination procedures can result in reinstatement claims or legal penalties. Documentation and legal review are highly recommended for every dismissal.

Conclusion

Brazil is a top-tier destination for companies expanding remote or in-country teams in Latin America. The country offers deep talent pools, highly educated professionals, time zone compatibility with North America, and a mature remote work environment.
While Brazil’s labor regulations 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.
Companies can hire via contractors, an EOR partner, or by forming a local legal entity. The right model depends on your growth stage, hiring volume, and compliance needs.

Frequently Asked Questions About Hiring in Brazil

1. What is the minimum wage in Brazil in 2025?
BRL 1,500/month (approx. USD $300).

2. Can I hire remote workers in Brazil without opening a company?
Yes. Using an Employer of Record (EOR) allows you to hire full-time employees without a local entity.

3. What are the most in-demand roles in Brazil?
Software developers, data engineers, customer support agents, digital marketers, and project managers.

4. What is the standard workweek in Brazil?
44 hours per week. Overtime is paid at 150% (weekdays) and 200% (weekends/holidays).

5. What employer contributions are required in Brazil?
Employers contribute to INSS (social security), FGTS (severance fund), and risk insurance, totaling around 26%–30% of salary.

6. How is severance calculated?
Employees are entitled to FGTS + 40% penalty, unused vacation, pro-rated 13th salary, and accrued benefits.

7. Is English widely spoken in Brazil?
English is common in tech and business roles, particularly in São Paulo, Rio de Janeiro, and Curitiba.

8. What are the options for setting up a company in Brazil?
LTDA is the most common legal structure. S.A. is used for larger enterprises.

9. How long does it take to set up a legal entity in Brazil?
Typically 4–8 weeks depending on region and document readiness.

10. Is Brazil a good country for long-term remote hiring?
Yes. Brazil offers high-quality talent, strong infrastructure, and business-friendly time zones, making it ideal for scaling remote teams.