Hiring in Brazil

Brazil’s vibrant talent pool is a draw for global firms, but its rigid labor laws and bureaucratic tax system pose significant challenges. Omnipresent, as your Employer of Record (EOR), takes on these complexities, ensuring compliance with CLT regulations and FGTS contributions without requiring a local entity.

We manage payroll, statutory benefits like the 13th salary, and Brazil’s generous 30-day vacation policy, freeing you to oversee your team in São Paulo or Rio. Our tech platform adapts to local needs, delivering a smooth hiring experience in this dynamic market.

• Quick setup for compliant hiring.
• Contracts in BRL, tailored to norms.
• Guidance on local labor practices.
• Scalable solutions for growth.

Employer costs include INSS (National Institute of Social Security), FGTS (Severance Indemnity Fund), and Vacation Pay. Use the OmniCalculator to estimate costs, or contact us for further information.

The rate of personal taxation varies depending on the income tax bracket the individual belongs to. This ranges between 0% - 27.5%.

Employee contributions include social security reform contributions based on progressive rates.

Maximum of 8 hours per day and/or 44 hours per week. Opt-out: limited. Overtime is capped at 2 hours per day and must be compensated.

For the first 15 days of sick leave, the employer pays 100% of the employee’s salary. From the 16th day onward (unlimited), Social Security pays for the leave (up to BRL 7,087.22 – value for 2022), but some CBAs do require an employer to supplement employees’ monthly earnings (pay them the amount corresponding to the difference between the Social Security pension and the employee’s salary), for a certain period.

Female employees are entitled to 120 days’ paid maternity leave and an extension of a maximum of 4 weeks, on medical grounds (2 weeks prior + 2 weeks after birth).  

Fathers are entitled to 5 days’ paid paternity leave (following the birth or adoption). Pay is 100% of regular wages and is paid by the employer.

Omnipresent Brazil isn’t enrolled in the government scheme Empresa Cidadã, supplementary scheme that companies in Brazil can opt to apply for should they wish to offer extended paid maternity and paternity leaves in exchange for tax deductions for our entity.

All employees are entitled to paid time off depending on how long they've been employed. Employees who have been employed for a full year can take up to 30 paid days off annually. 

Employees acquire 2.5 working days per month, which comes to 30 calendar days per year. For the purpose of counting holidays, calendar days are considered all days of the week. 

Completing an entire year of work is required before being eligible for holiday leave.

Part-time employees have the same holidays entitlement as a full-time. 

After 1 year of employment, employees are entitled to severance pay. Employers contribute 8% to the FGTS, during employment and employees are entitled to withdraw the amount corresponding to the sum of their deposits, depending on how the employment is terminated.

Termination is possible both with and without cause with certain exemptions.