Article
11 min read
How to Hire Using an Employer of Record in Brazil (2025 Edition)
Employer of record

Author
Ellie Merryweather
Last Update
June 30, 2025

Table of Contents
What is a Brazilian Employer of Record?
Top reasons to use an EOR in Brazil
How to Hire in Brazil: Step-by-Step Guide
Employment compliance tasks an EOR manages in Brazil
How much does it cost to hire through an EOR in Brazil?
Which EOR should you choose for hiring in Brazil?
Is Deel Employer of Record a Strong Choice for Hiring in Brazil?
Hire Employees in Brazil Confidently With Deel Employer of Record
Key takeaways
- Setting up a Brazilian entity to hire local talent can take months and could cost up to R$275,000 in legal, tax, and payroll setup.
- A Brazilian Employer of Record covers social security, taxes, contracts, and data protection under Brazilian labor laws, ensuring full compliance without the headache.
- Deel EOR owns its Brazilian entity for full control, supports hiring in 150+ countries, delivers transparent pricing, real-time compliance monitoring, and has top G2 ratings.
Brazil’s tech hubs—from São Paulo’s fintech corridor to Recife’s “Porto Digital”—are brimming with skilled developers, customer-success pros, and finance specialists. For global companies, tapping that talent can lower payroll costs by 30–40 percent compared with equivalent U.S. roles while adding a time-zone-friendly presence across the Americas.
Yet Brazil’s famously intricate labor system stops many expansion plans cold. To employ even a single person, you must set up a local entity, obtain a CNPJ tax ID, enroll in e-Social, and remit a web of social contributions—INSS, FGTS, RAT, and the sometimes confusing “Sistema S” levies. Miss a deadline and you face fines that stack daily. Factoring in LGPD data-protection rules and you can understand why HR teams hesitate.
An Employer of Record (EOR) in Brazil already owns a fully compliant Brazilian entity, sits between you and Brazil’s regulators, and manages employee payroll end-to-end. Deel—backed by real-time compliance monitoring, AI-powered workforce planning, and glowing customer reviews—lets you focus on growth while it shoulders the statutory heavy lifting.
What is a Brazilian Employer of Record?
A Brazilian Employer of Record is a licensed local entity that becomes the legal employer of your workers while you retain day-to-day control. The EOR service:
- Signs a compliant CLT employment contract in Portuguese on your behalf
- Registers the employee on e-Social and pays the INSS, FGTS, RAT accident insurance, and all “Sistema S” charges
- Calculates and withholds payroll income tax (IRRF) every month
- Handles payroll taxes, files all mandatory returns, maintains personnel files, and fronts any audit queries
- Lets you direct work, set KPIs, and embed the team into your culture
In short, operational control stays with you while legal liability for employment compliance and tax compliance shifts to the EOR. Deel’s Brazilian entity, staff lawyers, and Compliance Hub automate this entire chain, complete with proactive alerts if legislation changes.
Deel Employer of Record
Top reasons to use an EOR in Brazil
Eliminate entity hassle: Skip the four-to-six-month CNPJ registration and notary, accounting, and legal fees to set up a local entity
Accurate social security contributions: An EOR in Brazil auto-calculates INSS, FGTS, RAT, and “Sistema S,” preventing penalties
Compliant 13th salary management: Brazil’s mandatory 13th-month pay must be split into two installments by November 30th and December 20th. Deel schedules this automatically
Local contract expertise: CLT employment agreements must be written, bilingual, and filed on e-Social within 48 hours of the start date. EOR templates cover every clause from probation to IP assignment
LGPD data safeguards: Deel’s IP Guard and in-country data centers keep personal data local and encrypted
Defuse misclassification risk: Courts routinely convert contractors to employees when subordination is proven, exposing firms to back pay plus a 40 percent FGTS penalty. An EOR ensures compliance and removes that threat
How to Hire in Brazil: Step-by-Step Guide
Use this eight-step checklist to move from headcount request to compliant Brazilian hire in weeks. Your EOR takes on the heavy legal lifting, while your team focuses on talent and performance.
1. Choose an EOR with a wholly-owned Brazil entity
Start by verifying that the provider owns their entity, rather than reselling you a third party. Direct ownership guarantees tighter service-level control and faster issue resolution with Receita Federal. Deel’s São Paulo entity files taxes under its own CNPJ and keeps all employee data in-country.
Tip: Ask for the entity’s CNPJ number and search it on Brazil’s public Receita Federal database for peace of mind.
2. Book a demo and verify social proof
Schedule a live platform tour to see payroll runs, contract templates, and compliance dashboards in action. Check case studies and client testimonials for EOR services in Brazil. Scan reviews on G2 and Trustpilot, where Deel EOR holds a 4.8/5 average.
Tip: Request a customer reference in your industry to confirm Brazilian payroll accuracy and compliance.
3. Request a transparent EOR quote
Obtain a detailed quote including gross salary, statutory social costs, income tax withholding, and the EOR’s flat fee. Deel’s transparent pricing avoids hidden markups on benefits or filings.
Tip: Compare costs before you expand—read our article EOR vs. Entity Costs: What’s More Affordable?
4. Submit a 12–24-Month Hiring Plan
Brazilian labor law penalizes consecutive short fixed-term contracts. Share your mid-range headcount vision so the EOR can structure permanent CLT employment agreements and factor in annual vacation accruals. Deel’s Workforce-Planning dashboard models social-charge impact across scenarios.
Tip: Use Deel’s AI compensation benchmarks to ensure salary offers align with São Paulo or Belo Horizonte market medians.
5. Create the employment contract in the platform
Within Deel, select the Brazil hire template. You’ll complete salary, job title, and language fields; the platform locks CLT-required clauses—probation, vacation, and IP ownership clauses.
Tip: Customize probation durations within legal limits for flexibility.
6. Confirm the candidate's right to work
Brazilian nationals simply supply a CPF and RG. Foreigners need a residence visa and RNE card. Deel Immigration helps you verify identities and right to work swiftly and seamlessly.
Tip: Deel Compliance Hub flags any expiring visas 90 days in advance.
7. Run the onboarding workflow
With Deel EOR, every onboarding is adapted to local labor laws, supported by a dedicated onboarding manager. Within the platform, new hires can seamlessly verify identities and work-permit status, complete compliance documents and payroll information, and review and sign employment agreements.
Tip: Deel IT can help you equip your remote teams from overseas, keeping them connected and secure. Ship a configured laptop from São Paulo to any Brazilian ZIP in 48 hours.
8. Maintain Ongoing Compliance
Leverage real-time alerts for changes in German labor laws, payroll tax updates, and social security rates. Deel Compliance Hub tracks filings and flags discrepancies before they become issues.
Tip: Schedule monthly reviews with your EOR account manager to stay ahead of regulatory shifts.
Continuous Compliance™
Employment compliance tasks an EOR manages in Brazil
Your EOR takes on key employer obligations, ensuring you meet all statutory requirements while freeing you up to focus on growing your business.
Category | Key Requirements (2025) |
---|---|
Statutory Employer Costs | Employers must pay social security contributions, employee severance funds, accident insurance, and contributions to vocational training and social programs. Rates vary by industry, and combined, charges average 35.50% of employees’ salary. |
Employment Contracts & Probation Rules | Written Portuguese employment agreements are recommended within 48 hours of start. Probation may last up to 90 days and be split into two periods. Notice during probation is at least half the remaining period or payment in lieu. Permanent and fixed-term contracts allowed; fixed term capped at two years. |
Pay and Working Hours | Working hours: 8 hours per day, 44 hours per week. National minimum wage is BRL 1,518 per month, but a higher wage may be required depending on the Collective Bargaining Agreement applicable to the employer. Employees working between 10pm and 5am are considered to be working night shifts (adicional nocturno), and are entitled to 20% more pay. |
Payroll & PAYE Compliance | Payroll processed monthly; e-Social events S-1200 (remuneration) and S-1210 (withholding) filed by the 15th. Payslips must show gross, deductions, and net. Employers withhold INSS and IRRF tax per Receita progressive table. Payroll data must follow LGPD encryption rules. |
Vacation and Public Holiday Allowances | Employees earn 30 days’ paid vacation after 12 months. Up to 10 days may be sold back as Abono Pecuniário. Leave must be taken within the following 12 months or employer faces double-pay penalty. Brazil observes 12 national public holidays; plus extras set by states and cities. |
Income Taxes | Employers withhold IRRF at source using 2025 brackets. Tax is remitted by the 20th of the following month via DARF. A 7.5 percent surtax for high earners is proposed for 2025 but not yet legislated. |
Expenses, Allowances, and Bonuses | 13th-month salary mandatory in two installments. Meal/food vouchers exempt from INSS if provided under PAT program. Transport voucher obligatory unless employee opts out of >6 percent salary deduction. |
Statutory Benefits & Pension Requirements | Enrolment in public pension via INSS automatic. Employer contributes 20 percent; employee 7.5–14 percent. Optional private pension (PGBL) contributions are common above seniority band and can be payroll-deducted. |
Maternity and Paternity Leave | 120 days of paid maternity leave funded by social security; companies may extend to 180 days for tax incentive under Programa Empresa Cidadã. Fathers receive 5 days of paid leave, extendable to 20 days under the same program. Adoptive parents have identical rights. |
Sickness and Bereavement Leave | Employer covers first 15 calendar days at full pay. From day 16, INSS pays sickness benefit. Bereavement: two paid days for immediate family. Up to 5 unpaid days annually for child medical appointments. Medical certificate required. |
Terminations/Dismissals, Redundancy, Severance, and Resignations | Employee terminations without cause require: prior notice 30 days + 3 days per year of service, FGTS withdrawal plus 40 percent penalty on balance, and accrued 13th/vacation pay. Collective redundancy triggers union consultation. |
Health & Safety | NR-series regulations mandate risk assessments, PPRA, and PCMSO occupational health programs. Employers report serious incidents via CAT within 24 hours. Remote-work ergonomics policy required. |
Misclassification Risk | Courts apply “economic dependence” and “personal service” tests; fines include retroactive INSS, FGTS, and overtime. |
Data & IP Protection | LGPD governs personal data. Controllers must appoint a DPO and only transfer data abroad under adequacy decisions or SCCs. All IP created in employment defaults to employer ownership. Deel’s IP Guard auto-assigns inventions and securely stores code repositories in Brazil. |
How much does it cost to hire through an EOR in Brazil?
EOR pricing has three main parts:
- Employee’s gross salary
- Statutory employer costs
- EOR management fee
Factor | Your own Brazil entity | Deel EOR |
---|---|---|
One-off setup costs | R$237,014 | $0 |
Ongoing annual costs | R$275,827 | Included in flat fee |
EOR annual management fee | N/A | R$39,377 |
Liability for fines & audits | Company bears 100% | Shifted to Deel |
Time to first hire | 3-4 months | 1-3 business days |
Estimated total annual cost | R$512,842 | R$39,377 |
With Deel you lock in a predictable, all-inclusive fee for hiring employees in France and never worry about hidden surcharges for off-cycle payrolls or contract amendments.
Compare costs before you expand
Check out our guide: EOR vs. Entity Costs: What’s More Affordable?
Which EOR should you choose for hiring in Brazil?
Four criteria separate a solid partner from a costly misstep:
Entity ownership: Choose an EOR in Brazil that owns—not rents—a local entity. This ensures direct control, faster escalation, and better alignment with Brazilian labor laws.
Compliance expertise: Confirm in-house labor lawyers track CLT, tax, and LGPD changes daily.
Platform breadth: Beyond paying employees and payroll taxes, look for integrated benefits, equipment logistics, equity, and performance tools.
Global coverage: If Brazil is one of many markets, a provider supporting 150+ countries (and 120+ payrolls) keeps your HR stack unified.
How Entain swiftly deployed talent in highly regulated markets with Deel EOR
Entain is a leading global sports betting and gaming entertainment group with 30,000 employees and offices in 19 countries, including the US, Canada, the UK, and Latin America. The company is ambitiously expanding its global footprint, with Brazil as its next strategic market for 2024-2025. However, regulatory challenges delayed the establishment of a legal entity in the country.
Through the partnership with Deel EOR, Entain enhanced its compliance with challenging employment laws, paving the way for successful entity formation in Brazil.
“Regulatory hurdles delayed our entry into Brazil. However, thanks to Deel EOR, we were able to swiftly deploy our team there, ensuring seamless operations and timely payments.”
--Tom Brady, Head of Strategic Resourcing Relationships, Commercial at Entain
Is Deel Employer of Record a Strong Choice for Hiring in Brazil?
Deel stands out as a top Employer of Record for hiring in Brazil. With wholly-owned entities and deep expertise in Brazilian labor laws, Deel removes the pain of entity setup and ongoing compliance, letting you hire quickly and compliantly. As a G2 leader, Deel is rated best-in-class for user satisfaction and market presence among EOR providers.
- Hire in Brazil in as little as 5–10 days—no need to set up a local entity
- Deel owns its Brazilian entity, ensuring direct compliance and faster support
- Transparent, flat pricing—no surprise charges for 13th salary or social contributions
- Covers all statutory employer costs: INSS, FGTS, RAT, and “Sistema S” levies
- Local CLT employment agreements, benefits, and payroll managed end-to-end
- Real-time compliance monitoring and alerts with Deel Compliance Monitor
- Fully LGPD-compliant data storage and IP assignment with Deel’s IP Guard
- Access 150+ countries and 120+ payrolls through one platform
- High user satisfaction: G2 leader for EOR with top customer reviews
- Integrated extras: background checks, equity, benefits, and device logistics
With Deel, you can focus on finding and retaining top talent in Brazil while we manage employee compliance, payroll taxes, and the regulatory maze—let’s explore how you can scale faster.
Deel’s platform was a game changer for our Brazil expansion. Thanks to Deel EOR, we achieved significant growth and hiring success.
—Tom Brady,
Head of Strategic Resourcing Relationships, Commercial at Entain
Hire Employees in Brazil Confidently With Deel Employer of Record
Speed matters. With Deel, you can hire employees in Brazil in days, not months, and manage your entire global team from one dashboard. And with Deel’s flat-rate pricing means you always know what you’ll pay—no year-end surprises.
Ready to expand without the stress of setting up a local entity, legal filings, and payroll headaches? Book a Deel demo and see how quickly you can hire and onboard local talent.
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FAQs
How quickly can I hire an employee in Brazil through Deel EOR?
Most hires are completed in 5–10 business days after you submit candidate details and documents.
Do I need a local bank account or CNPJ number to use Deel EOR in Brazil?
No—Deel’s wholly-owned Brazilian entity acts as the legal employer, so you don’t need to set up a local entity or bank account.
What type of contract will my Brazilian employee get?
Your employee will receive a compliant CLT employment agreement in Portuguese, covering all statutory rights and obligations.
Who handles payroll tax withholding and filings?
Deel manages all monthly payroll, INSS and FGTS social security contributions, and income tax withholdings, ensuring PAYE and tax compliance.
When are payroll deadlines in Brazil?
Payroll is processed monthly, with salary paid by the 5th business day, and all payroll taxes remitted by statutory deadlines.
Are benefits like health insurance and meal vouchers included?
Yes—Deel can set up standard Brazilian benefits (meal/food vouchers, health plans) as part of the onboarding workflow.
Is there a probation period for new hires?
CLT contracts allow up to 90 days’ probation, which Deel includes in its employment agreements.
How is statutory vacation managed?
Employees earn 30 days’ paid vacation per year, tracked and paid out automatically by Deel.
What happens if I need to terminate an employee?
Deel manages all statutory notice, severance, and FGTS penalties according to Brazilian law, reducing your risk with employee terminations.
Does Deel help with compliance under Brazil’s LGPD data law?
Yes—Deel stores employee data locally and ensures all contracts and payroll are LGPD compliant.

About the author
Ellie Merryweather is a content marketing manager with a decade of experience in tech, leadership, startups, and the creative industries. A long-time remote worker, she's passionate about WFH productivity hacks and fostering company culture across globally distributed teams.