How to Hire Staff in Brazil


How to Hire Staff in Brazil With Embark

Our staff are experts in fields ranging from operations, payroll, accounting, and more. Learn what you need to expand your business and hire staff in Brazil.

Introducing Brazil

Brazil is the fifth largest country in the world and occupies nearly half the land area of South America. Brazil is a world giant of mining, agriculture, and manufacturing, with a powerful and quickly growing service industry

Capital City - Brasília

Currency - Brazilian Real (R$, BRL)

Languages Spoken - Portuguese

Population Size - 214 Million (2021)

Time Zone - GMT -03:00

GDP - USD 1.61 Trillion (2021)

Employee Classification

Employees can be majorly divided into two categories –  Contractors and Employees and defining relation with the employee is very important to avoid risks associated with misclassification.

The courts in India have applied the control and integration test to determine whether a person can be classified as an employee or independent contractor. The prima facie test is the control test to determine whether an employer-employee relationship exists and it is not merely to direct the nature of work that has to be carried out but also to control the manner in which it is done.

Another difference between an employer and contractors is an employer is required to withhold tax at the time of payment of salary to employees. The salary paid to an employee may include benefits and allowances that the employee is entitled to, which is beneficial to the employee from a tax perspective. However, with respect to independent contractors, the employer must withhold the applicable taxes; however, the amount paid may not be in the form of salary, but as professional fees for services performed. In both these cases, the employee and independent contractor/s will be required to file their income tax returns as prescribed under law.

Hiring Structure in Brazil

Payroll Cycle

The payroll cycle in Brazil is generally either bi-weekly or monthly and employees are paid on the 15th and 30th of each month. There are no provisions in the law regarding 13th salaries.

Public Holidays



Jan. 1st

  New Year’s Day

Jan. 20th

  Saint Sebastian (only Rio de Janeiro)

Jan. 25th

  Foundation of the city of São Paulo (São Paulo only)

April 21st

  Tiradentes Memorial Day

April 23rd

  Saint George (only Rio de Janeiro)

May 1st

  Labor Day

July 9th

  Constitutional revolution (São Paulo only)

Sept. 7th

  Independence Day

Oct. 12th

  Apparition of the Blessed Mother Mary

Nov. 15th

  Proclamation of the republic

Nov. 20th

  Remembrance Day to Blacks (not nationwide)

Dec. 25th

  Christmas Day



March 1st


April 15th

  Good Friday

April 17th

  Easter Sunday

May 26th

  Ascension (only Rio and São Paulo)

June 5th

  Whit Sunday

June 16th

  Corpus Christi

Benefits & Health Insurance

Mandatory employee benefits in Brazil include workers’ compensation, disability, life insurance, and Paid Time Off (PTO) in situations such as maternity and paternity leave, among others. Desired supplementary employee benefits in Brazil include medical and dental care, private retirement plans, and life and disability insurance.

Personal Income Tax

Resident taxpayers who receive income from Brazilian sources are subject to withholdings. Resident taxpayers who receive income from non-Brazilian sources (e.g. through split payroll arrangement) or from individuals (e.g. rental income) are subject to mandatory monthly tax payments on amounts not subject to withholdings.

The monthly income tax will be calculated based on the following progressive tax rates (in Brazilian real or BRL) as of April 2015:



Income at or over (BRL)

Up to (BRL)

Tax rate (%)

Deductible tax amount (BRL)



















and above




Employment Termination

In Brazil, employments are at will, meaning that any party may terminate the employment agreement without cause upon the mandatory prior notice and payment of the severance. It is not necessary to mention any reason for termination, except if it is a termination with cause. 

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