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Hiring via an employer of record in Brazil is an attractive option for companies seeking to establish a presence in Latin America’s largest market. It is an effective way to quickly hire top talent without having to navigate Brazil’s complex legal, payroll, and employment framework independently.
Because an employer of record in Brazil hires staff on your behalf through its own local entity, you can avoid the often lengthy process of setting up a company while ensuring full compliance with local labor regulations. At the same time, you benefit from local market expertise, established recruitment networks, and reduced legal exposure, as the EOR assumes employer-related liabilities.
As Latin America’s largest economy, Brazil continues to be a strategic destination for companies expanding their global workforce, particularly for nearshoring, technology, and regional operations.
If you are interested in hiring team members through an employer of record in Brazil, contact us to find out more about how we can assist you.
Why invest in Brazil?
Known as the “Giant of South America,” Brazil is the fifth-largest country in the world and home to more than 217 million people.
Brazil has a diversified economy supported by strong agricultural exports, natural resources, manufacturing, and a large and growing services sector. Key exports include soybeans, iron ore, petroleum, sugar, and meat.
The country also has a strong industrial and services base concentrated around major urban centers such as São Paulo, which alone accounts for over 10% of the national population and serves as Brazil’s main business and financial hub.
Brazil remains one of the most attractive markets in the region for foreign investment, supported by its large domestic market, skilled workforce, and continued demand for digital, financial, and technology-driven services.
Why recruit Brazilian professionals?
Brazil is home to some of the most prestigious universities in Latin America, including the Federal University of Rio de Janeiro and the University of São Paulo. In recent years, the country has continued to strengthen its output of highly skilled graduates across engineering, IT, business, and applied sciences.
Brazilian professionals are widely recognized for their adaptability, creativity, and strong work ethic. Combined with cultural alignment with North American and European companies, this makes Brazil an attractive hiring destination for global teams.
The rapid growth of Brazil’s startup ecosystem, particularly in fintech, SaaS, and digital services, has positioned the country as one of Latin America’s leading innovation hubs, producing multiple unicorn companies valued at over USD 1 billion.
While Brasília and São Paulo remain key centers for corporate and IT talent, innovation-driven professionals can be found across most major cities nationwide.
Why hire via an employer of record in Brazil?
Hiring local talent through an employer of record in Brazil has several benefits, which you can enjoy quickly and without hassle.
Having an established recruitment network with a track record of finding top professionals, an employer of record in Brazil will be able to quickly identify strong candidates for the roles that you may wish to fill.
Moreover, an employer of record will also be familiar with the layers of red tape that can be found when doing business in the country – due in part to regulations being set at numerous different levels of government, from the federal to the municipal.
As such, an employer of record in Brazil will be well-placed to help you find and onboard great local team members in the shortest time possible.
The fact that the employer of record will take on legal liabilities related to being an employer also offers significant peace of mind, eliminating the risk of unexpected legal difficulties or financial penalties associated with non-compliance.
Meanwhile, you will have full control over the workloads, responsibilities, and schedules of all of the professionals hired on your behalf, who will report directly to you.
There is also a major convenience factor involved, given that your employer of record will oversee all payroll and administrative matters, including drawing up employment contracts, and will simply bill you on a monthly basis, with the service fee added on top.
That fee will usually be charged on a per-employee basis, while you will have access to all of the accounting involved in the charges made to you.
Employment regulations that an employer of record in Brazil will handle
Salary:
As of January 1, 2026, Brazil’s national minimum wage is BRL 1,621 per month, with corresponding daily and hourly equivalents. Income tax exemptions and wage-linked benefits adjust automatically based on this threshold.
Annual bonus:
Employees are entitled to a mandatory 13th salary, paid in two installments each year, equivalent to one month of salary.
Working hours:
The standard workweek remains 44–48 hours, typically distributed as eight hours per day plus a shorter Saturday shift. Hours worked beyond the legal limit must be paid as overtime with statutory premiums.
Employment contracts:
Employment agreements may be fixed-term or indefinite. Contracts must be written in Portuguese and specify compensation in Brazilian reais. A probation period of up to 90 days is permitted.
Vacation and leave:
Employees are entitled to 30 days of paid vacation after 12 months of service, plus a mandatory vacation bonus equal to one-third of monthly salary. Sick leave of up to 15 days is paid by the employer upon presentation of medical documentation.
Parental leave:
Maternity leave is 120 days, while paternity leave is 5 paid days, subject to advance notice requirements.
Benefits:
Public healthcare coverage is provided through Brazil’s social security system. Many employers also offer private health insurance as an additional benefit.
Brazil employment compliance updates to be aware of in 2026
While Brazil’s labor framework remains broadly stable, employers should be aware of several important compliance updates taking effect in 2026:
- Minimum wage increase:
The national minimum wage rose to BRL 1,621 per month as of January 1, 2026, impacting payroll calculations, benefits, and wage-linked contributions. - Holiday work rules for retail:
From March 2026, retail and commerce-sector employers must have a valid collective bargaining agreement in place to operate on public holidays. - Workplace risk management obligations:
Employers are required to include psychosocial risk factors (such as workload, stress, and work organization) in occupational risk assessments, with labor inspections enforcing compliance from May 2026 onward.
An employer of record in Brazil ensures these regulatory changes are applied correctly and consistently, reducing compliance risk for foreign companies.
6 steps to hiring via an employer of record in Brazil
When hiring professionals through an employer of record in Brazil, you will go through the following six steps:
1) Define employee profile
In Brazil, you can find excellent professionals in software development and other IT-related disciplines, so you will first have to define the employee profile that best suits your business objectives in this nation.
Your employer of record in Brazil will support you in developing a job description that covers the experience and requirements you are looking for. Then, your EOR will post advertisements on its wide range of channels to find candidates through its local contacts.
2) Undertake preliminary screening
Job applications will arrive soon, so your employer of record in Brazil will start to evaluate them to eliminate those that do not meet the requirements you set, such as expertise, experience, and soft skills.
Once the receipt of resumes and letters of motivation is complete, your EOR will compile the most substantial profiles and schedule initial interviews to screen out applications until they find the best match for the vacancy.
3) Stage initial interviews
With the strongest candidates identified, your employer of record in Brazil will conduct another round of interviews based on your feedback about the position and the profile you are looking for.
Included in that step is a proficiency test in any language deemed essential. For example, for Brazilian workers, an interview could be conducted in English or Spanish to check the fluency of bilingual or multilingual candidates. The employer of record will then provide you with a list of strong candidates.
4) Hold in-depth interviews
You, or a representative of yours, will then have the chance to stage your own formal interviews with any candidates chosen from those presented to you by the employer of record in Brazil.
While the initial interviews will cover more general aspects of a candidate’s suitability for a role, at this stage they will be tested for the more specific knowledge, experience, and aptitudes needed to perform the role they are being hired for.
5) Offer job and complete contract signing
Once you have chosen a candidate for a particular position, your employer of record in Brazil will take care of the paperwork, including writing the job offer and establishing an employment contract based on your needs and local regulations.
That contract will then be presented to the candidate for signing, and once you and they have both signed, the process will be closed, with unsuccessful candidates informed.
6) Onboard new team members
Once the contract is signed, your employer of record in Brazil will then oversee the onboarding process, based on your guidance.
That will include going over their duties and responsibilities, informing them of their legal responsibilities and rights, and coordinating the supply of any equipment they will need to undertake their duties.
Serviap Global is an employer of record in Brazil
At Serviap Global, we international PEO / EOR services throughout Latin America, as well as having a trusted network of partners that allows us to assist clients in over 100 countires worldwide.
We also offer global talent acquisition services, assisting clients with recruiting direct hires.
We are a family owned company that started offering services in Mexico before expanding throughout Latin America and, thanks to our regional expertise and service excellence, we are relied upon to deliver services on behalf of some of the best-known brands in the international PEO / EOR market.
Contact us today to find out more about how we can help you hire top talent in Brazil.
If you were interested in this article about hiring via an employer of record in Brazil, check out more of our coverage.
Frequently Asked Questions – Employer of Record in Brazil (2026)
Is it legal to hire employees in Brazil without a local entity?
Yes. Companies can legally hire employees in Brazil through an employer of record service, which acts as the legal employer on behalf of the client while ensuring full compliance with local labor laws.
What is the minimum wage in Brazil in 2026?
As of January 1, 2026, Brazil’s national minimum wage is BRL 1,621 per month, with proportional daily and hourly rates. This amount impacts payroll calculations, benefits, and statutory contributions.
What employment responsibilities does an employer of record handle in Brazil?
An employer of record manages employment contracts, payroll processing, tax withholdings, social security contributions, statutory benefits, and ongoing compliance with Brazilian employment laws.
Does Brazil require a 13th salary payment?
Yes. Brazilian labor law requires a mandatory 13th salary, equivalent to one month of pay, usually paid in two installments each year.
Can an employer of record support Brazil payroll and compliance changes in 2026?
Yes. An employer of record monitors regulatory updates—such as minimum wage increases, holiday work rules, and workplace risk requirements—and applies them correctly to ensure ongoing compliance.
