Employer of Record (EOR) in Brazil

An EOR in Brazil allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment including visa sponsorship, from payroll processing to compliant administration.

Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Brazil.

Talk to an Expert

Country InsightsBrazilEmployer of Record

Quick Overview of EOR in Brazil

Expanding into Brazil doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Brazil's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like CLT compliance and FGTS contributions, so you can focus on growing your business without the need to set up a costly local entity.

The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Brazil can cost anywhere from USD 15,000 to USD 30,000 plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.

Disclaimer: May include AI-generated content. For general informational purposes only - not professional or legal advice.

Content published on this webpage, including articles, materials, or other information, is provided for general informational purposes only. Certain content may be generated or assisted by artificial intelligence (AI) technologies, and while reasonable efforts may be made to review and curate materials, not all content is subject to comprehensive human verification or editorial review.

Accuracy, completeness, or reliability is not guaranteed. This content does not constitute legal, professional, or other advice and should not be relied upon. Any use of the information is at your own risk. Users are responsible for independently verifying any information. All materials are provided “as is,” without any warranties of any kind, express or implied and Atlas Technology Solutions, Inc. disclaim all liability arising from use of, or reliance on, this content.

What You'll Learn

  • Looking to hire in Brazil without the hassle and administrative burden of setting up a local entity? An EOR helps you onboard employees while maintaining compliance with payroll and local labor laws.

  • With a Direct EOR, you gain control, faster onboarding, and stronger compliance. It is ideal for businesses aiming to scale quickly.

  • On the other hand, an Indirect EOR may be more cost-effective but comes with slower processes and added complexity.

  • EOR service fees typically range from USD 500 to USD 750 per employee per month.

  • Atlas HXM offers a robust Direct EOR solution, providing smooth market entry, compliance, and seamless employee management: all in one platform.

How an EOR Works

Atlas HXM provides EOR services that ensure your business remains compliant with Brazil's labor laws while you focus on growing your operations, free from administrative and legal burdens.

Candidate Selection

Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Brazilian CLT requirements, and configuring payroll and statutory obligations correctly. EOR providers in Brazil, including Atlas HXM, can sponsor work visas for foreign nationals, serving as the local employer for immigration purposes and handling the complex visa application process.

Employment Contracts

Atlas HXM drafts and administers employment contracts in compliance with the Brazilian Consolidation of Labor Laws (CLT). In the contract, we clearly outline employment terms to reduce the risk of future disputes, such as:

  • Job title and responsibilities

  • Salary, benefits, and working hours

  • Leave entitlements and notice periods

Payroll & Benefits Management

Payroll is processed in Brazilian reais (BRL), including:

  • Accurate tax withholdings and social security contributions

  • Statutory benefits such as 13th-month salary and FGTS contributions

The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Brazil's laws.

Work Permit Compliance

In Brazil, EOR providers can apply for and sponsor work passes for foreign nationals. Atlas HXM manages compliant employment, payroll, social security, and statutory obligations in alignment with Ministry of Labor regulations.

Ongoing HR Support

Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.

Costs & Pricing

EOR services in Brazil are typically billed as a platform/service fee in the range of USD 500–750 per employee per month. This fee covers administration such as compliant contracts, payroll processing, statutory filings, and HR administration for workers. This service fee is separate from the employee's salary, benefits, taxes, and visa-related costs, which vary by role and jurisdiction. By using an EOR, companies avoid the cost and overhead of setting up a Brazilian entity, which can require USD 15,000–30,000 upfront before any operational spend.

Explore Our Transparent Pricing Plans 

What to Choose: EOR vs PEO

EOR

Employer of Record

An EOR becomes the legal employer for your talent in a country where you do not have an entity. The EOR handles compliant contracts, payroll, statutory benefits, tax filings, and labour-law adherence. You still direct the employee's work. This model suits companies expanding into Brazil without wanting to form a local entity or take on compliance risk.

PEO

Professional Employer Organization

A PEO provides outsourced HR services like payroll, benefits, HR admin, but only when you already have a local entity. You remain the legal employer, and the PEO shares administrative tasks without taking on employer liability. Suitable when you are already established in the country and are only looking to offload HR administration.

What’s Best for You?

  • Choose an EOR when you want to hire in Brazil without setting up an entity and want a partner who can take on contracts, payroll and compliance.

  • Choose a PEO when you already operate locally and just want HR support.

Work Life in Brazil

Brazil's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:

Employment Types:

  • Permanent: Ongoing employment with full statutory benefits under CLT.

  • Fixed-Term: Hired for a specific project or defined duration, maximum 2 years.

  • Temporary: Short-term assignments through staffing agencies; entitled to statutory benefits.

Probation Periods: Brazilian law allows probationary periods of up to 90 days, which can be structured as a single 90-day period or two periods (typically 45 days + 45 days). These periods allow employers to assess employee suitability before offering permanent employment. Notice periods during probation are reduced, and the EOR ensures that all terms are compliant with CLT requirements.

Working Hours & Overtime: In Brazil, the standard workweek is 44 hours, typically distributed as 8 hours per day Monday through Friday plus 4 hours on Saturday, or 8.8 hours Monday through Friday. Employees must receive a meal break of at least 1 hour for shifts exceeding 6 hours. For eligible employees covered by CLT, overtime is paid at 1.5x the basic hourly rate, and the EOR ensures that all overtime is calculated correctly and that employee work hours comply with local regulations.

Leave Entitlements

Leave Type

Eligibility / Duration

Payment / Notes

Annual Leave

30 calendar days after 12 months of service

Paid by employer plus 1/3 constitutional bonus

Maternity Leave

120 days (extendable to 180 days)

Paid through social security benefits

Paternity Leave

5 days (extendable to 20 days)

Paid by employer

Sick Leave

First 15 days paid by employer, then INSS

Full salary for first 15 days; social security thereafter

Public Holidays

All statutory holidays

Paid; handled by Atlas HXM

Vacation Leave

30 days annually with 1/3 bonus

Paid; unused leave paid out upon termination

Payroll & Benefits: Wages must meet minimum wage requirements (R$1,621 per month as of January 2026), with mandatory 13th-month salary payments. Atlas HXM manages payroll in BRL, social security contributions (INSS), FGTS contributions, statutory benefits, bonuses, and supplemental health insurance. Additional benefits can include meal vouchers, transportation vouchers, and private health insurance.

Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Brazil's labor laws while businesses can focus on operations without administrative burdens.

More Reading

10 Best Employers of Record in Brazil in 2026

Blogs04 Dec 2025

Navigating Global Hiring Amid Policy Shifts: From H-1B to Brazil’s Contractor Classification, What It Means for Businesses

Blogs20 Nov 2025

Brazil’s Public Holidays: What Employers Need to Know in 2025

Blogs01 Jul 2025

What to Choose: Indirect vs Direct EOR

Direct EOR

The EOR owns the legal entities in the target country, coordinating all employment-related tasks directly. It offers faster onboarding, better compliance, and more control.

Best for: Businesses looking to scale quickly, expand long-term, or enter Brazil with compliance.

Indirect EOR

The EOR provider acts as an intermediary between the business and a third-party local entity. While it can be cheaper, it may result in delays and compliance complexity.

Best for: Small teams or short-term hires with less urgent compliance needs.

What’s Best for You?

  • For Small Teams or Contractors: Indirect EOR could work, especially for temporary hires or testing a market.

  • For Scaling and Compliance: Direct EOR is the best choice. With Atlas HXM, you'll have control, faster entry, and streamlined compliance.

Taxes & Compliance

Brazil operates on a calendar-year tax system, running from January 1 to December 31. Employers must submit monthly payroll taxes by the 20th of the following month, FGTS contributions by the 20th, and provide annual filings such as RAIS by March 31st and DIRF by February 28th. Individual income tax returns are due by April 30th of the following year.

Category

Details

Employer Payroll Tax

Social Security (INSS): 20% of gross salary

  • FGTS: 8% of gross salary

  • Work Accident Insurance: 1-3% depending on industry risk

  • Social System contributions: 1-2.5% varying by industry

Employee Payroll Tax

Progressive income tax: 7.5%-27.5% based on income levels

  • Social security contributions: 7.5%-14% of gross salary (capped)

  • Tax-free threshold: approximately R$2,112 per month

Pension System

Public system (INSS) provides retirement, disability, survivor benefits

  • Retirement age: 65 (men), 62 (women) with minimum contribution years

  • Private pension plans (PGBL/VGBL) available with tax advantages

ISS & EOR Costs: Brazil applies ISS (Service Tax) at municipal level, typically 2-5% on EOR services. This tax is included in EOR service fees. Tax recovery opportunities may exist for companies using EOR services that support business operations generating taxable revenue in Brazil.

Atlas HXM handles tax compliance, including progressive income tax calculations, social security contributions, FGTS management, year-end filings, and expatriate tax planning, ensuring businesses remain compliant with local laws while minimizing administrative burden.

Termination

Employees must give written notice for termination, with statutory notice periods ranging from 30 days (less than 1 year service) to 90 days (over 10 years' service). Probationary employees have reduced notice requirements. Severance pay for employees terminated without cause includes advance notice, proportional 13th-month salary, vacation pay with 1/3 bonus, FGTS withdrawal rights, and 40% FGTS penalty payment. The EOR helps ensure proper handling of terminations, including notice periods, final wages, and required documentation.

Visas & Work Permits

In Brazil, foreign nationals must hold valid work authorization such as VITEM V (temporary work visa) or VIPER (permanent work visa) depending on their role and eligibility.

EOR providers, including Atlas HXM, can sponsor and file visa or work-permit applications in Brazil, serving as the local employer for immigration purposes. The visa application process typically takes 2-4 months and requires extensive documentation. Once authorization is in place, Atlas HXM can employ the individual under the EOR model and manage payroll, social security, benefits, and compliant employment administration.

5 Things to Look for in an EOR Provider in Brazil

  1. Local expertise and knowledge of Brazilian labor laws, social security contributions, and Ministry of Labor requirements.

  2. Advanced technology for payroll, reporting, and HR system integration with Brazilian government platforms.

  3. Experience in your industry and handling work permit management and visa sponsorship.

  4. Strong compliance track record and relationships with government agencies and legal advisors.

  5. Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).

Speak to an Expert

atlas logo

Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Atlas HXM's unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2025, Atlas HXM combines compliance, technology, and global expertise.

See Our Clear Pricing Plans 

FAQs

How long does it take to hire an employee through an EOR in Brazil?

The hiring process typically takes 2-3 weeks from contract signing to employee start date, including employment contract preparation, government registrations, and onboarding procedures.

Can an EOR help with work visas for foreign employees in Brazil?

Yes, EORs can sponsor work visas for foreign nationals, serving as the local employer for immigration purposes and handling the complex visa application process.

What is the total cost of employment in Brazil compared to base salary?

Total employment costs typically range from 45-55% above base salary when including all mandatory contributions, benefits, and EOR service fees.

Are there minimum salary requirements for EOR services in Brazil?

Employees must receive at least the Brazilian minimum wage (currently R$1,412 per month), and some states have higher minimum wage requirements.

How does the 13th-month salary work in Brazil?

The 13th-month salary is a mandatory annual bonus equal to one month's salary, typically paid in two installments - one between February and November, and the final payment by December 20th.

Can employees work remotely for a Brazilian EOR?

Yes, remote work is permitted under Brazilian law with proper contractual arrangements, though employees must still comply with Brazilian labor law regardless of their work location.

         

CareersAbout UsAnalyst Reviews & ReportsPartner with Atlas HXMPricingContact Us

How We Help

Global Hiring & ExpansionConsulting & SupportMergers & AcquisitionsCountry ComplianceEmployee BenefitsTalent OnboardingExpense Management

Who We Help

Financial ServicesTechnologyLife Science & PharmaNon-Profit & NGOEnergy, Oil & GasPrivate Equity & VCStartup & Growing

Resources & Tools

Global Salary CalculatorGlobal Employee Cost CalculatorCountry InsightsCase StudiesReports & WhitepapersEvents & WebinarsBlog

©2026 Atlas Technology Solutions, Inc.

Cookie PolicyPrivacy NoticeTerms & Conditions

For People, By People