Countries/Brazil/In-country employment
Latin America · In-country employment
In-country employment in Brazil
Brazil's labour code (CLT) is the default for a job. The true cost is monthly salary plus 20% employer INSS, 8% FGTS, a 13th salary, vacation plus one-third, and a material termination reserve.
eSocial event reporting is part of running payroll — not an optional IT project.
Plan an in-country hire- ✓
CLT employment contract — The person is employed under the CLT, with a Digital Work Card record — not as a false PJ contractor.
- ✓
You still manage — Your managers set the work. We run the contract, eSocial, FGTS, and payroll.
- ✓
No company first — Start the hire before you incorporate. Convert later if you open a Brazilian entity.
Statutory stack
What sits on top of wages
CLT employer charges and statutory extra pay sit on top of gross. This is not a salary survey.
| Item | 2026 rule |
|---|---|
| INSS employer | Generally 20% of remuneration, uncapped (plus RAT 1–3% and Sistema S / third-party charges by activity) |
| FGTS | 8% of remuneration deposited monthly (including on the 13th salary) |
| 13th salary | One extra month's pay for a full year, usually in two instalments by 30 November and 20 December |
| Vacation bonus | 30 days' leave plus a constitutional one-third bonus |
| Federal minimum wage 2026 | BRL 1,621 / month from 1 January 2026; state or collective floors may be higher |
Role salary ranges are not on this page. Open the 2026 salary guide when those figures are published.
Choose a path
In-country employment vs incorporating
A Brazilian limitada is the usual long-term employer. In-country employment is for a first commercial or plant seat.
| In-country employment | Your own entity | |
|---|---|---|
| When to use it | A first country manager or commercial hire that must start before the company exists. | When you want your own Brazilian company as employer. |
| Who employs | A licensed local employer holds the CLT contract. Your managers direct the work. | Your Brazilian company runs eSocial, FGTS Digital, and DCTFWeb in its own name. |
| PJ / contractor | A job directed by you is CLT. A PJ invoice is not a compliant substitute for an employee. | The same pejotização risk sits with your own company. |
Onboarding
From briefing to first payday
eSocial admission events have to fire before or at the start date. That sets the calendar.
01
Briefing
Place of work, role, CLT vs any genuine service contract, and start date.
02
Contract
CLT terms: job, salary, hours, and probation (experience contract) where used.
03
eSocial
Admission event, FGTS Digital, and social-security registrations.
04
First payday
Monthly payroll with INSS, FGTS, IRRF, and 13th-salary accrual.
05
Convert or close
Move the person onto your Brazilian company, or terminate with notice, accrued 13th, vacation, FGTS access, and the 40% FGTS penalty where dismissal is without cause.
Compliance
Five points that change the hire
01
13th salary is statutory
One extra month for a full year, prorated otherwise (Laws 4,090/1962 and 4,749/1965). INSS and FGTS apply on it.
02
FGTS 8% plus termination penalty
Monthly 8% deposit is employer-paid. Dismissal without cause generally adds a 40% penalty on the FGTS balance.
03
Working time
Generally 8 hours a day and 44 hours a week. Overtime is at least 50% above the normal hourly rate unless a collective agreement sets more.
04
Collective agreements
Sindicato agreements can raise floors, hours, and benefits above the CLT minimum. Check the category before you name a salary.
05
Foreign nationals
A work visa / residence matching the job — not a visitor stamp — if the person is not a Brazilian national.
Questions
FAQ
- Can a foreign company hire in Brazil without a Brazilian company?
- Not on its own eSocial/FGTS accounts without a local employing vehicle. In-country employment uses a licensed local employer while your managers direct the work.
- Is the 13th salary mandatory?
- Yes. A full extra month for a year of service, usually paid in two instalments, with INSS and FGTS on top.
- What is the 2026 minimum wage?
- The federal minimum is BRL 1,621 per month from 1 January 2026 (Decree No. 12,797/2025). State or collective floors can be higher.
- What should we add on top of salary?
- Plan 20% employer INSS, 8% FGTS, RAT and Sistema S, a 13th-salary accrual, and vacation plus one-third. Fully loaded CLT cost is often around 1.4–1.7× gross before termination reserves.
Labour-law detail for Brazil sits on the hiring guide.
Other markets
Other in-country employment 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 (Consolidação das Leis do Trabalho)
- Decree No. 12,797/2025 — federal minimum wage BRL 1,621 from 1 January 2026
- Laws 4,090/1962 and 4,749/1965 — 13th salary; Law 8,036/1990 — FGTS 8%
Plan an in-country hire in Brazil
Tell us the city, the role, and when they need to start.