Our Employer of Record (EoR) / International PEO solutions enable staffing organisations and foreign businesses to expand into Brazil and hire employees without the need to establish a new corporate entity. 

We take care of the entire employment relationship including managing all social security costs, social benefits and statutory rights afforded to the employee. The best part is that our EoR solutions are completely managed by the Capital GES team, allowing you to concentrate on international expansion. 


Interested in doing business in Brazil? Here are the top six things you need to know: 

1. Social security
Brazilian social security includes:

- Health Care
- Social Security
- Old Age Pension

Employer contributions vary from 26.8% to 28.8% of the gross salary depending on the company's core business. Employee contributions range from 8% to 11% of the gross salary, with a cap set by law.

2. Bonus and Expense Payments
Bonuses are treated as additional salary, if paid more than once per year.

Business-related expenses can be reimbursed upon valid original receipt.

3. Employment contract details
Local labour law provides that the employment contracts must be in local language (Portuguese).

Contracts must be in writing.

4. Fixed-term contract extensions
Fixed term contracts may not exceed 2 years in total duration, and can only be extended once for an equal period. After extending a fixed-term contract, successive fixed-term contracts are not allowed without observing a 6 month-break period in between.

5. Termination costs
Severance payment depend on the employee’s length of employment and notice period given.

A 30-day prior notice must be given in writing in the event an employee is dismissed without justified cause or upon resignation by the employee, except for fixed-term contracts. If the employment exceeds 12 months, the notice period is increased by 3 days per full year worked until the maximum notice period of 90 days is reached.

Employer must also pay out the accrued severance fund, 13th salary and vacations plus vacation bonus.

6. Termination rules
Terminations in Brazil are often complex and should be considered with local experts before any notice is issued. Brazil does not allow at-will termination of employment for employers; contracts may be terminated by mutual agreement or unilaterally for due cause (serious cause, unfit for the role, extinction of the role). As a result of this complexity terminations are often a negotiated process.

Fixed-term contracts cannot be terminated early by the employer


If you are looking to expand your workforce in Brazil (or any other of the 30 countries we operate in) without the burden of registering an entity and incurring significant expense and administration then please get in touch with Nick Broughton at Capital GES on +44 7539 337 563 or email Nick.Broughton@Capital-GES.com

Capital GES provides market-leading employment services to staffing companies, corporate clients and independent contractors in all sectors across Europe, Latin America and southern Africa. With headquarters in Switzerland and offices in USA, Brazil and UK, Capital GES provides services including Employer of Record, Contractor Payroll, Invoice & Pay and IC Compliance Checking.








For more detailed information on employment matters in Brazil, including statutory benefits, employment regulations and contract requirements, download our free guide today or contact our team for a free consultation. ​​