Hiring in Brazil: costs, rules and the best EOR providers

Law 6.019 permits regulated service outsourcing, including core activities, but does not give every arrangement marketed as EOR blanket approval. Under its outsourcing model, the service provider hires, pays and directs its workers; the client retains subsidiary liability for relevant employment obligations.

Temporary work is a separate regulated route. Match the contracts and actual management of the worker to the correct model before hiring.

The Brazilian employing company hires the worker under CLT, registers the employment and operates local payroll, statutory benefits and employment records. The client funds the agreed service but must understand the legal arrangement behind it.

A CLT contract does not by itself validate every labour-supply model: distinguish a compliant outsourced service from statutory temporary work and record the parties’ actual responsibilities.

Budget for the thirteenth salary and the one-third holiday supplement, as well as employer payroll charges. Ordinary FGTS is 8% of relevant remuneration; general employer INSS is 20%, with accident and third-party contributions and possible regime-specific differences.

Paid holiday salary normally sits within the twelve-month salary budget; adding another full month on top can double-count it. The EOR fee and contractual benefits are separate.

PJ contracting carries classification risk when the real relationship is employment, but it is not automatically unlawful. CLT employment addresses that classification prospectively and brings employee entitlements and payroll costs.

Brazil’s courts continue to examine the boundary between lawful commercial arrangements and disguised employment. Assess the work’s actual control and independence; changing the contract label or using an EOR does not settle historic exposure.

The actual Brazilian employer sends the admission to eSocial, normally through S-2200 before the employee starts. S-2190 can provide preliminary admission information when the full event will follow within the applicable deadline.

The CPF, admission date, contract and payroll details must be consistent. Obtain confirmation from the EOR before the start date; a signed commercial service agreement is not evidence that employment registration has been completed.

For an illustrative R$13,500 monthly salary, annual cash remuneration is R$180,000: twelve salaries, one thirteenth salary and a R$4,500 holiday supplement. Assuming ordinary employer INSS at 20%, FGTS at 8% and combined accident/third-party charges at 6.8%, employer charges add R$62,640.

An assumed R$3,000 monthly EOR fee brings the planning total to R$278,640 before additional benefits and termination costs.

For dismissal without just cause, the employer generally deposits an additional 40% of the FGTS deposits attributable to the employment, with the statutory adjustments.

It is not 40% of salary and is not calculated only from the employee’s remaining withdrawable balance. The EOR must reconcile the termination calculation, including deposits still due. Notice, accrued salary, leave and other settlement items remain separate.

The agreement normally follows the employing entity’s predominant activity and the relevant territorial scope, with exceptions for differentiated professional categories. It is not chosen merely from the client’s industry or the employee’s preferred benefits.

Have the EOR identify the applicable convenção coletiva and classification in writing, including the salary floor, adjustments and benefits. An “EOR agreement” is not a separate statutory category.