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.
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.
How an EOR Works
Atlas HXM provide 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.
What to Choose: EOR vs PEO
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.
What to Choose: Indirect vs Direct EOR
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
|
Employee Payroll Tax | Progressive income tax: 7.5%-27.5% based on income levels
|
Pension System | Public system (INSS) provides retirement, disability, survivor benefits
|
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
Local expertise and knowledge of Brazilian labor laws, social security contributions, and Ministry of Labor requirements.
Advanced technology for payroll, reporting, and HR system integration with Brazilian government platforms.
Experience in your industry and handling work permit management and visa sponsorship.
Strong compliance track record and relationships with government agencies and legal advisors.
Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).
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 2026, Atlas HXM combines compliance, technology, and global expertise.
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.