Hiring in Brazil through an Employer of Record
Brazilian law puts two payroll charges on the employer, both written into federal statute.
Employing someone in Brazil through an Employer of Record costs 13 monthly salaries a year rather than twelve, as the law requires, plus 20 percent social security (inss), 8 percent fgts, plus the vendor's own monthly fee, the lowest published being from $199 from RemoFirst. The charges were read from planalto.gov.br and the other government pages listed below, last on .
What does an employer pay on top of salary in Brazil?
- 20% Social security (INSS)
- 8% FGTS
Each charge, and what it is for
- Social security (INSS): 20 percent of monthly pay, to the national social security system (Lei 8.212/1991 art. 22).
- FGTS: 8 percent of monthly pay, deposited into the worker's severance fund account (Lei 8.036/1990 art. 15).
- Minimum wage: R$ 1,621 a month, the national floor for every employee.
Salaries a year: 13, not twelve. The law requires an extra payment of a month's pay, which it calls uma gratificação salarial
(read from the law).
This figure is in BRL, and the calculator below works in US dollars, so it does not apply it. Converting would need an exchange rate this site has not sourced.
Both charges also apply to the thirteenth salary. The calculator adds that salary at face value but not the charges on it, so the total runs slightly low.
What does one employee in Brazil cost a year?
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. The extra salaries the law requires are added at face value; any employer charges on them are not. "At least" marks a vendor whose published fee is a starting price. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM from $599, Deel from $599, G-P from $599, Multiplier from $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst from $199, Remote from $599, Remundo from $498, Rivermate from $349, Skuad from $199, Slasify from $250, Teamed from $599. Not published: Rippling.
Where these numbers come from
- Social security (INSS) on planalto.gov.br read
- FGTS on planalto.gov.br read
- Each vendor's own pricing page, linked from its name above.