Brazil PEO Employment Services by Velocity Global

Brazil PEO Employment Services

Velocity Global’s Brazil PEO (Professional Employer Organization) simplifies expanding into Brazil by acting as your Employer of Record. Through this solution, you don’t need to establish an entity in Brazil to grow your business. Instead, we expedite the international employee onboarding process, payroll, compliance, risk mitigation, and benefits – our global expansion and market expertise are at your service.

Our streamlined global expansion method accelerates your time-to-market by 90% when compared to entity setup. Velocity Global hires your candidate on your behalf in compliance with local labor laws to ensure a quick, simplified global growth experience. We can hire as many or as few employees as needed for your expansion into Brazil.

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Brazil Fast Facts

Currency: The Brazilian real
Capital: Brasilia
Population: Brazil is the largest and most populous nation in Latin America, with 209.5 million people.
Economy: Ninth-largest at 1.869 trillion USD (nominal GDP)
Top Sectors: Service, industry, and agriculture
National Holidays:

    • New Year’s Day
    • Carnival *
    • Good Friday *
    • Tiradentes Day
    • Labour Day
    • Corpus Christi *
    • Independence Day
    • Our Lady of Aparecida
    • All Souls’ Day
    • Republic Day
    • Christmas Day

* Carnival, Good Friday, and Corpus Christi are optional holidays, known as Ponto facultativos.

Hiring Considerations in Brazil

With 26 states and over 200 million people, Brazil has a rich and diverse cultural heritage. Making sure you’re familiar with the particular traditions in whichever state you’re doing business will ensure a smooth expansion experience.

Benefits of hiring in Brazil:

  • Expanding into Brazil allows companies to do business in the world’s ninth-largest economy and Latin America’s most influential. Brazil has the 6th largest global population and a rapidly expanding middle class, creating a tremendous opportunity in consumer goods.
  • For companies operating globally, Brazil’s young, skilled workforce, many of whom are trilingual (speaking Portuguese, Spanish, and English) provides a tremendous advantage.
  • Operating in Brazil affords companies a variety of trading and commercial opportunities. Brazil is a member of the Southern Common Market (MERCOSUR), so doing business in Brazil grants easy access to Argentina, Paraguay, and Uruguay and seven other counties in the region who are also Associated Members.
  • Agriculture, energy, mobile application development, and financial technology are all fast-growing sectors in Brazil.
  • Agriculture, energy, mobile application development, and financial technology are all fast-growing sectors in Brazil.

Challenges when expanding into Brazil:

  • For all its growth and economic opportunity, Brazil is still considered a developing nation. Many sectors of the economy, like consumer behaviors, business regulations, and investment infrastructure, still have a long way to go before they reach the maturity levels of developed nations.
  • Brazil ranks 125th out of 190 countries, according to the World Bank’s annual global report evaluating the ease of doing business. High levels of bureaucracy mean forming a company takes between 90 and 120 days of work.
  • Brazil has an extremely high tax burden – the highest of all the BRIC (Brazil, Russia, India, China) countries with more than 90 taxes, duties, and contributions charged. When starting a new business in Brazil, entrepreneurs must spend over half of their profits dealing with taxation requirements.
  • Costly and complex labor legislation – nicknamed the “Brazil tax” – can be challenging to navigate. There are 900 articles in Brazil’s labor laws, and non-compliance is punished with steep fines and reputational damage. Additionally, employees are quick to sue companies if their work policy doesn’t adhere to local laws.
  • Corruption and bribery still dominate much of Brazil’s business landscape, with a wide range of regulatory agencies and public officials demanding bribes. The organization Transparency International ranks Brazil 35/100, with zero being the most corrupt. While the government did launch the “integrity programme” to increase transparency and tackle corruption, it is an ongoing battle.

Cultural nuances and must-knows for doing business in Brazil:

  • Get to know potential candidates, as developing personal connection matters in Brazil. If not, companies risk missing out on a great hire.
  • Greet business associates with handshakes, hugs, and backslaps. When attending a meeting, make sure that you greet every person in the room individually. The same goes for saying goodbye when you leave.
  • Accept that physical contact during conversation is common in Brazil. Emphasizing a point by touching each other on the arm or the back while talking is common. Don’t be caught off guard by this act of warmth and familiarity during interviews and try to maintain good eye contact.
  • Conduct business over a meal. It’s important to be aware of local, cultural etiquette about how to order, eat, and comport yourself in a manner that shows familiarity with local customs and demonstrates class.
  • Arrive at meetings on time but do not be offended if meetings start late and run overtime. While you need to arrive at an interview on time, it’s common for Brazilians to turn up a bit late.

Employment Contracts in Brazil

Minimum wages and salaries:

In 2020, the minimum wage in Brazil increased to 1,039 reais ($258) a month.

Probation periods:

A maximum probation period of 90 days is allowed in Brazil. This can be taken in two terms of 45 days if that is preferred. If the contract is terminated at the end of the probation period, employers are required to provide payment up to the date of termination, as well as accrued vacation pay and prorated 13th salary.


A special bonus, called “the 13th salary, ” is equal to one month’s salary and paid out to employees over two installments in November and December. This is a legally-mandated benefit and not part of the base salary.

Termination and severance considerations:

Either the employee or the employer may give written notice, called Aviso prévio, one month before the desired end date. However, many companies choose to pay the employee for an extra 30 days of work without requiring them to work through the notice period. After one year of service, employees earn an additional three days of notice per year, making the total possible notice period 90 days.
If the employee is dismissed without cause, the employer must make a final payment of 40% of the accumulated balance inside the employee’s Unemployment Compensation Fund, plus 10% to a government social fund. Although expensive, many companies choose to terminate without reason, as dismissing someone with cause often leads to lawsuits.

Paid Time Off & Benefits

Maternity leave:

Expectant mothers in Brazil are entitled to 120 days of leave. During this time, mothers receive a monthly salary and benefits, paid in full. Upon disclosure, it is illegal to fire pregnant mothers up until one year after birth. However, companies may grant mothers an additional 60 days of paid leave, which can be deducted from corporate income tax.

Paternity leave:

New fathers are entitled to five days of leave with full compensation. Employers must approve paternity leave in advance.

Earned/privilege leave:

In Brazil, employees earn a minimum of 30 calendar days of leave, accrued during their previous 12 months of employment. The employee earns a holiday bonus of the equivalent of one-third of a month’s salary.


Vacation is usually taken in one block but is occasionally split into 20 days and ten days. Both holiday pay and the bonus pay is due, prorated, upon termination.

Sick leave:

Employees who are ill must provide a medical note, and then they are entitled to 15 days of paid sick leave. Social security pays for additional leave if the employee requires more recovery time. Either way, benefits must continue to be paid until the employee returns to work.

Other leave:

In the event of a wedding, employees are allowed three days of leave. In the event of a death in the family, employees two days of bereavement leave.


Average workweek hours:

Working hours may not exceed 44 hours per week, with the preference being eight hours a day and four hours on Saturday. However, many companies choose not to require their employees to work on Saturday, opting instead to have them put in an additional 48 minutes every weekday.

Overtime considerations:

For regular business days, employers pay an additional 50% of the regular working rate. Employers must obtain a special permit to bring employees to work on Sundays. Employees receive 100% of their regular rate if they choose to work on that day.


Employers can expect their portion of social security and legal benefits to cost an additional 80% on top of an employee’s salary. Unless an employee resigns, their pension accrual is payable at the end of their employment.

  • Employer Payroll Tax: 28%
  • Social Security (INSS): 8-11%
  • FTGS (pension): 8%
  • Third-Party Companies: 45.59%

Choose Velocity Global

Expanding your business abroad is an exciting time, but the right preparation is necessary to expand into Brazil successfully. By choosing Velocity Global as your International PEO (Professional Employer Organization) partner, you’re entrusting an expert in global expansion to oversee and accelerate your time to market.

Whether you hire one supported employee to test the market, engage in a short-term project, or establish your presence in Brazil with multiple hires, International PEO gives you the flexibility you need to build your team on your timeline—saving your business up to 60% when compared to traditional entity establishment. As your Employer of Record, we handle all risk mitigation, payroll, and compliance, so you can focus on running your business.

Accelerate your expansion into Brazil with our expert employment law guidance and unequaled global infrastructure. Learn more about Velocity Global’s seamless approach to international expansion and get in touch today.

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