Brazilian Real (BRL) is the official currency of Brazil. Its currency symbol is R$.
Brasília is the federal capital of Brazil. It is located in the Federal District (Distrito Federal)
Portuguese is the official and national language of Brazil and is widely spoken by most of the population.
GROW YOUR TEAM IN BRAZIL
NO ENTITY, NO PROBLEM
To start growing your team in Brazil, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
PROS AND CONS OF HIRING IN BRAZIL
Brazil is the largest and most populous country in South America with the eighth-largest economy in the world. Its large talent pool of experienced and highly skilled technology workers makes Brazil a great choice for businesses.
However, Brazil is known to have strong employment laws in place that favour employees. For example, some of Brazil's employee entitlements may exceed the benefits that your business currently provides. Establishing and operating a business there can be a complex process.
WHY BRAZIL IS GOOD FOR REMOTE WORKERS
Remote working, known as trabalho a distancia (working away from the office), has been growing consistently in Brazil in recent years.
The Brazilian Labour Reform legitimised remote working in 2018 and has made further progress since. Brazil has all the characteristics of a remote workers' hub, including reasonable cost of living, safety, a community of digital nomads and entrepreneurs, and good WiFi.
WORKING TIME AND OVERTIME IN BRAZIL
The standard working week is 44 hours. Each workday lasts 8 hours, Monday - Friday and 4 hours on Saturdays. However, employer-employee contracts and collective bargaining agreements usually set the workday hours at 9 hours per day and two full days off.
Also, any overtime is paid at twice the normal base salary rate. Sundays and holidays are usually paid at +100% and nights at +20%. For any overtime going beyond 9 hours per week, employees must be paid at triple their normal base salary rate.
ANNUAL LEAVE AND BRAZIL'S PUBLIC HOLIDAYS
Full-time employees are entitled to 30 days’ paid leave annually after completing their first year. They are also entitled to a vacation bonus of one-third of their regular monthly salary. Brazil has eight national holidays, and around 50 state holidays. State holidays differ from one state to another.
January 1st: New Year's Day
April 21st: Tiradentes' Day
May 1st: Labour Day
September 1st: Independent Day
October 12th: Our Lady of Apercida
November 2nd: All Souls' Day
November 15th: Republic Proclamation
December 25th: Christmas
TRIAL PERIOD IN BRAZIL
RESIGNATION AND DISMISSAL IN BRAZIL
The contract may be terminated on either the employer’s or employee’s initiative.
In the case of dismissal with cause, the employee will be entitled to the proportional salary for the days worked after last payment (including proportional 13th salary). There will be a pro-rata payment for accrued holiday entitlements and bonus. No prior notice is required.
In the case of dismissal without cause, the employee will benefit from 30 days of notice. In addition to the payment of accrued rights mentioned above, they will benefit from the provision of the guarantee fund (FGTS). It will also be necessary to add a penalty corresponding to 40% of the accumulated value of this fund.
When an employee resigns, they will be entitled to the proportional salary for the days worked after last payment (including proportional 13th salary) and pro-rata payment for accrued holiday entitlements.
BRAZIL'S MATERNITY AND PATERNITY LEAVE
SICKNESS AND DISABILITY LEAVE IN BRAZIL
EXPENSES IN BRAZIL
MINIMUM WAGE IN BRAZIL
Brazilian labour law specifies that any worker is entitled to a remuneration. This salary is usually paid monthly. Today, the minimum wage is currently BRL 1.100 (approximately $ 192.55 / € 171.00).
Another key point is that your employment contract should clearly states compensation details. As an employer in Brazil, Unions may also pressure you to increase wages periodically.
BONUSES IN BRAZIL
BRAZIL'S INCOME TAX
SALARY PAYMENTS IN BRAZIL
SOCIAL SECURITY CONTRIBUTIONS IN BRAZIL
Social contributions in Brazil are paid by both the employer and the employee. Indeed, every company which hires in Brazil has to pay taxes and social security for their employees. Below we’ll discover some of the mandatory benefits for employers:
FGTS (Severance fund): the FGTS is a Brazilian tax that works as an assistance fund for workers in specific situations. For example, a worker dismissed without cause will benefit from the FGTS. The Tax Rate for FGTS is 8%.
INSS (Social Security): the INSS is another fund which manages the social security in Brazil but also the pension system. The Tax Rate for INSS is 20%.
RAT (Social tax): basically, the RAT tax is the working accident contribution the company needs to pay to cover work-related injuries.
The Tax Rate for RAT is 1%. Terceiros (Social tax): this tax is another contribution to governmental institutions related to employee’s fund for training. The Tax Rate for Terceiros is 6%. Employees also participate in the financing of social benefits by paying employee contributions that are deducted from their gross salary.
In Brazil, each employee is required to contribute to the INSS (Social Security).
WORKER MISCLASSIFICATION IN BRAZIL
Similar to other countries, Brazil has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.