Foreign nationals must hold a valid work visa and residence authorisation to be employed in Brazil.

• Common Visas: Temporary Work Visa (VITEM V) and residence permits for executives, technical professionals, or intra-company transferees.
• Sponsorship: The employer or EOR must sponsor the application through Brazil’s immigration authorities and Ministry of Justice.
• Validity: Typically granted for up to 2 years, renewable, with pathways to permanent residence.
• Local Entity Requirement: Employment must be linked to a registered Brazilian entity or EOR.

Employers must register with the Federal Revenue Service (Receita Federal) and relevant social security authorities.

• Payroll Frequency: Monthly (commonly paid by the 5th business day of the following month).
• Withholding: Employers must withhold income tax (IRRF), social security (INSS), and FGTS contributions.
• Social Security Contributions:
  
  • Employer: ~28–30% (INSS, FGTS 8%, accident insurance, third-party funds)
  • Employee: Progressive INSS contributions up to statutory caps
• Reporting:
  
  • Monthly payroll filings
  • Annual income reporting (DIRF)
  • Digital payroll reporting via eSocial

Contracts may be open-ended or fixed-term and must be in writing.

• Probation Period: Maximum 90 days (often split into two 45-day periods).
• Working Hours: Standard 44 hours per week, 8 hours per day.
• Overtime: Paid at 150% minimum; higher rates apply on rest days and holidays.
• Termination: Requires notice or pay in lieu; terminations without cause trigger severance.
• Severance: Includes FGTS balance payout and a 40% penalty on employer FGTS deposits.

• Annual Leave: 30 calendar days per year after 12 months of service, plus a one-third vacation bonus.
• Public Holidays: Federal, state, and municipal holidays apply.
• Sick Leave: First 15 days paid by employer; thereafter covered by social security.
• Maternity Leave: 120 days (often extended to 180 days under employer programmes).
• Paternity Leave: 5 days statutory (extendable to 20 days under certain schemes).
• Mandatory Benefits: FGTS, social security, and transportation allowance (Vale Transporte).

• Tax Residency: Individuals resident in Brazil are taxed on worldwide income.
• Non-Residents: Taxed only on Brazil-sourced income.
• Tax Year: January 1 – December 31.
• System: Progressive personal income tax up to 27.5%.
• Double Tax Treaties: Limited but expanding treaty network.