Employer of record in Brazil: cost and rules (2026)
Employing someone in Brazil costs the employer about 50.9% on top of gross salary in statutory contributions, plus an EOR fee of $199 to $699 per month at providers that publish prices ("from" prices). Example: a gross salary of BRL 10,000 per month costs BRL 15,089 per month (about $2,690) before any EOR fee.
Estimates only, not tax, legal or accounting advice. Statutory rates, limits and provider prices change; check the linked sources and ask a qualified adviser before you hire.
Employer contributions in Brazil
Minimum wage: BRL 1,621 per month. Decreto 12.797 of 23 Dec 2025, in force from 1 Jan 2026. Daily R$ 54.04, hourly R$ 7.37 per the decree. Some states and unions set higher floors (piso regional / convenção coletiva). Source: Decreto 12.797/2025 (Câmara dos Deputados, official text)
Worked example: BRL 10,000 gross per month
| Item | Base (BRL) | Per month (BRL) |
|---|---|---|
| Employer social security (INSS patronal / CPP) | 10,000 | 2,000 |
| Workplace accident insurance (RAT/SAT, adjusted by FAP) | 10,000 | 200 |
| Third-party contributions (terceiros / Sistema S, salario-educacao, INCRA) | 10,000 | 580 |
| FGTS (severance fund deposit) | 10,000 | 800 |
| 13th salary (decimo terceiro) accrual | 10,000 | 833 |
| Vacation constitutional bonus (1/3 on top of vacation pay) accrual | 10,000 | 278 |
| INSS + RAT + terceiros + FGTS on the 13th salary and vacation bonus | 10,000 | 398 |
| Gross salary | 10,000 | |
| Total employer cost (mandatory items) | 15,089 |
Contractor, EOR or own entity in Brazil
| Option | Per month | Per month (USD) | Per year | Notes |
|---|---|---|---|---|
| Contractor | BRL 10,107 to 10,275 | $1,801 to $1,831 | BRL 121,279 to 123,299 | No employer contributions. Misclassification risk. Includes contractor-platform fee range. |
| Employer of record | BRL 16,205 to 19,010 | $2,889 to $3,389 | BRL 194,464 to 228,125 | Salary + statutory costs + EOR fee range. |
| Own legal entity | BRL 15,089 | $2,690 | BRL 181,067 | Salary + statutory costs. Setup, accounting and legal costs are not estimated. |
Contractor
A contractor in Brazil usually invoices through their own company (PJ). Labour courts look at the real relationship: personal service, subordination, regular pay and fixed hours can lead to the contract being reclassified as employment, with back payment of FGTS, 13th salary, vacation and social charges. A contractor pays their own taxes and has no statutory leave or severance.
Own entity
A foreign company can employ staff directly only through a Brazilian legal entity, typically a limited company (Ltda.) or a corporation (S.A.), registered with the tax authority and the state trade board. This page does not give figures for minimum capital or set-up time because none have been sourced yet.
Leave, notice, probation and termination
Annual leave: 30 days (30 calendar days of paid vacation after each 12 months of service, with at least one third extra pay. Vacation can be split into up to three periods with the employee's agreement, and a worker can sell up to one third of it.). Public holidays: 9. Source: Nine national holidays: seven under Lei 662/1949 as amended by Lei 10.607/2002 (1 Jan, 21 Apr, 1 May, 7 Sep, 2 Nov, 15 Nov, 25 Dec), plus 12 Oct (Lei 6.802/1980) and 20 Nov (Lei 14.759/2023). Vacation days: CLT art. 130. Good Friday, Carnival and state or city holidays vary and come on top.
Notice
An employer that dismisses a worker must give 30 days' notice (or pay in lieu), plus 3 extra days for each full year of service after the first, up to 90 days in total. (Lei 12.506/2011.)
Probation
Brazil has no free-form probation period. The usual tool is a fixed-term trial contract (contrato de experiência) of up to 90 days in total, which can be extended once within those 90 days. Normal employment rights, including FGTS and the 13th salary, apply during it. (CLT art. 445.)
Termination
If the employer dismisses a worker without cause, it pays a fine of 40% of the worker's total FGTS balance, plus the notice, the proportional 13th salary and vacation, and FGTS on those. If employer and worker agree to end the contract, the fine is 20% and notice pay is halved. These costs are not in the monthly estimate. As a rough planning figure, setting aside about 3.2% of pay a month (8% x 40%) covers the fine, but that is the site's own arithmetic, not a legal charge.
What the calculator simplifies
- The calculator models a company on Lucro Real or Lucro Presumido. Companies on Simples Nacional pay a single unified rate and are not modelled.
- RAT is fixed at 2% with a FAP factor of 1.0. The real rate is 1%, 2% or 3% multiplied by the company's FAP (0.5 to 2.0), so it runs from 0.5% to 6%.
- Third-party contributions are fixed at 5.8% (FPAS 507 and 515, the usual full rate). Other activities pay 2.5% to 5.2% or other combinations.
- The payroll-relief regime (CPRB) for about 17 sectors is not modelled. It replaces the 20% INSS with a percentage of revenue and is being phased out by Lei 14.973/2024. Ordinary employers are not affected.
- Vacation is modelled as the accrual of the one-third bonus only. Ordinary pay during vacation is already in the monthly salary, and a worker selling one third of vacation is ignored.
- Charges on the 13th salary and the vacation bonus are applied as a flat 35.8% of those accruals. In practice the charges on the 13th are computed in the December payroll, but the annual total is the same.
- Not included: meal and transport vouchers (the employer pays the part of vale-transporte above 6% of salary), health insurance, collective-agreement benefits and pay floors, family allowance, maternity pay, sick pay beyond 15 days, overtime, night and hazard premiums, and the extra 2.5% charge on financial institutions.
- Termination costs (the 40% FGTS fine, notice, proportional 13th salary and vacation) are not in the monthly figure.
- Employer INSS has no ceiling. The INSS ceiling that matters for employees' own contributions is not an employer cost and is left out.
EOR provider prices
| Provider | EOR price (USD) | Contractor price (USD) | Billing and deposit | Source and checked |
|---|---|---|---|---|
| Skuad | from $199 | from $19 | Not published | price page |
| RemotePeople | from $499 | from $29 | Not published | price page |
| Deel | from $599 | from $49 | Not published | price page |
| G-P (Globalization Partners) | from $599 | from $39 | Not published | price page |
| Remote | from $599 | from $29 | Annual contracts for EOR | price page |
| Oyster | from $699 | from $29 | Monthly or annual | price page |
| Rippling | Not published | price page | ||
| Multiplier | not verified | Not verified | price page unverified | |
| Papaya Global | not verified | Not verified | price page unverified |
Affiliate disclosure: some links to providers may be affiliate links. If you sign up through one, we may be paid at no extra cost to you. Tables are sorted by price, not by what a provider pays us. Read the disclosure.
Calculator for Brazil
FAQ
How much does it cost to employ someone in Brazil?
On top of gross salary, statutory employer costs add about 50.9% at a gross salary of BRL 10,000 per month. That is a total of BRL 15,089 per month before any EOR fee.
How much does an employer of record cost in Brazil?
Providers with a published price list EOR plans from $199 to $699 per month ("from" prices, checked 2026-11-13). This is on top of salary and the statutory employer costs above. Source
How much paid leave do employees get in Brazil?
Annual leave is 30 days (30 calendar days of paid vacation after each 12 months of service, with at least one third extra pay. Vacation can be split into up to three periods with the employee's agreement, and a worker can sell up to one third of it.), plus 9 public holidays. Source
What is the notice period in Brazil?
An employer that dismisses a worker must give 30 days' notice (or pay in lieu), plus 3 extra days for each full year of service after the first, up to 90 days in total. (Lei 12.506/2011.) Source
Is there a probation period in Brazil?
Brazil has no free-form probation period. The usual tool is a fixed-term trial contract (contrato de experiência) of up to 90 days in total, which can be extended once within those 90 days. Normal employment rights, including FGTS and the 13th salary, apply during it. (CLT art. 445.) Source
What are the rules on ending employment in Brazil?
If the employer dismisses a worker without cause, it pays a fine of 40% of the worker's total FGTS balance, plus the notice, the proportional 13th salary and vacation, and FGTS on those. If employer and worker agree to end the contract, the fine is 20% and notice pay is halved. These costs are not in the monthly estimate. As a rough planning figure, setting aside about 3.2% of pay a month (8% x 40%) covers the fine, but that is the site's own arithmetic, not a legal charge. Source
Sources
- Decreto 12.797/2025 (Câmara dos Deputados, official text)
- Lei 8.212/1991, art. 22 I (Câmara dos Deputados, consolidated text); Receita Federal page on employer social security contributions
- IN RFB 2.321/2026, Anexo I (replaces Anexo III of IN RFB 2.110/2022), DOU 14 Apr 2026; text read on LegisWeb because the Receita Federal norms page did not load without a browser
- Lei 8.036/1990, art. 15 (Câmara dos Deputados, consolidated text)
- Lei 4.090/1962, art. 1 (Câmara dos Deputados); Lei 8.212/1991, art. 28 §7 (13th salary counts for INSS); Lei 8.036/1990, art. 15 (counts for FGTS)
- PGFN - employer social security contribution (cites Constitution art. 7 XVII and STF Tema 985 on the one-third bonus); CLT art. 130
- Nine national holidays: seven under Lei 662/1949 as amended by Lei 10.607/2002 (1 Jan, 21 Apr, 1 May, 7 Sep, 2 Nov, 15 Nov, 25 Dec), plus 12 Oct (Lei 6.802/1980) and 20 Nov (Lei 14.759/2023). Vacation days: CLT art. 130. Good Friday, Carnival and state or city holidays vary and come on top.
- www2.camara.leg.br
- www2.camara.leg.br
- gov.br