CLT is the default for a job
A person working under your direction is an employee. A PJ invoice (pejotização) is the usual inspector and labour-court dispute.
Latin America · Hiring guide · 2026
Hiring in Brazil: labour law and payroll
This page is the labour-law and payroll stack for multinational employers hiring in Brazil. It is not a salary survey.
In-country employment is how you run this stack without a Brazilian company.
To hire without incorporating first, use in-country employment in Brazil.
Contracts
Contracts and probation
Experience contract
A contrato de experiência is the usual probation vehicle, generally up to 90 days (often 45+45). It has to be in the CTPS/eSocial record.
Collective agreements
The sindicato agreement for the category can raise floors, hours, and benefits. Check it before you name a salary.
Hours
Working time and overtime
Hours
Generally 8 hours a day and 44 hours a week. A 12×36 roster is a separate, regulated exception.
Overtime
At least 50% above the normal hourly rate, more on holidays or under some collective agreements. Daily overtime is limited.
Vacation
30 calendar days after 12 months, plus a constitutional one-third bonus. Selling up to 10 days is allowed under CLT rules.
Wage floor
Minimum wage, 2026
The federal minimum is a floor. State or collective floors may be higher. 13th salary and FGTS are statutory. These are not market salaries.
| Rule | Figure |
|---|---|
| Federal minimum wage 2026 | BRL 1,621 / month from 1 January 2026 |
| INSS employer | Generally 20% of remuneration, uncapped, plus RAT 1–3% and Sistema S by activity |
| FGTS | 8% of remuneration each month, including on the 13th salary |
| 13th salary | One extra month for a full year, usually two instalments (30 Nov and 20 Dec) |
Fully loaded CLT cost is often around 1.4–1.7× gross before termination reserves, because INSS, FGTS, 13th, and vacation-plus-one-third all stack. Employee INSS is progressive (7.5%–14%) on a capped base (R$ 8,475.55 in 2026) and is withheld from pay.
Exit
Terminating and offboarding
Dismissal without cause
Notice (or pay in lieu), accrued 13th, accrued vacation plus one-third, FGTS withdrawal, and a 40% penalty on the FGTS balance.
For cause
CLT lists just causes. They are construed narrowly. A weak cause file becomes an ordinary dismissal with the 40% penalty.
eSocial termination event
The exit has to be reported. Homologation rules depend on the collective agreement and length of service.
Questions
FAQ
- Is the 13th salary mandatory in Brazil?
- Yes. One extra month for a full year of service, prorated otherwise, usually paid in two instalments, with INSS and FGTS on top.
- What is the 2026 minimum wage?
- BRL 1,621 per month from 1 January 2026 (Decree No. 12,797/2025). Collective or state floors can be higher.
- What is FGTS?
- An 8% employer deposit on remuneration, including the 13th salary. Dismissal without cause generally adds a 40% penalty on the balance.
- Can we hire as a contractor (PJ)?
- Only for genuine independent services. A country manager under your direction is CLT.
Other markets
Other hiring guide pages
Reviewed 11 September 2026
This is a hiring briefing for multinational employers, not legal advice. Statutory rates move by city, province, and sector. Confirm the place of work before you issue an offer.
Sources
- CLT
- Decree No. 12,797/2025 — BRL 1,621 from 1 January 2026
- Laws 4,090/1962 and 4,749/1965 — 13th salary; Law 8,036/1990 — FGTS
Hire in Brazil
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