How To Hire in Brazil: Complete Guide

Remote work has grown rapidly, and Brazil stands out as a key market for companies seeking to expand their talent pool. If you're looking to hire in Brazil, this guide covers essential aspects: key considerations for remote hiring, popular roles, salary expectations, and best practices to find, hire, and retain top Brazilian talent.

How to Hire Remote Talent in Brazil

When considering hiring in Brazil, it is crucial to understand the different options available and the legal implications involved. Here are three effective ways to hire in Brazil:

1. Contractor

Choose independent contractors for flexibility and potential savings, but be wary of misclassification risks in Brazil. Lupa’s tailored services approach ensures compliance and seamless contractor hiring.

• Recruiting: We help you find and vet top candidates, but you handle hiring and payroll. Ideal when you want control over the process with expert support.
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• RPO: We take over your entire recruiting process for a fixed monthly fee, managing everything from sourcing to hiring. Perfect for scaling efficiently without adding internal overhead.

2. Staffing Model

Partner with Lupa to streamline recruitment and HR tasks, offering an efficient and scalable solution for global expansion plans.

At Lupa, we specialize in Staffing and helping you hire new talent with three proven methods. Our goal is to offer you a seamless, risk-free hiring experience that provides peace of mind. With our 120-day guarantee, you can trust that if the hired candidate falls short, you’ll receive a free replacement.

3. EOR (Employer of Record)

Delegate formal employment management, including payroll, taxes, benefits, and compliance, to Lupa, especially valuable in countries like Brazil with intricate labor laws and local laws. Focus on workforce management while Lupa handles salary and benefits negotiations. This employer of record Brazil service is essential for compliance.

Can US Companies Hire Remote Employees from Brazil?

Yes, U.S. companies can hire remote employees from Brazil. This country has a growing talent pool with many skilled professionals in tech, marketing, and other industries.

While remote hiring in Brazil offers cost savings and flexibility, companies must navigate labor laws, local employment regulations, local entity requirements, tax rates, and compliance. Partnering with a recruitment expert like Lupa ensures these complexities are managed effectively, enabling U.S. companies to hire remote employees seamlessly while remaining compliant with Brazilian regulations.

Remote Roles to Hire in Brazil

When considering remote hiring in Brazil, certain remote jobs in Brazil stand out as particularly suitable for remote work, such as:

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Why Hire Remote Employees from Brazil?

• Brazil workplace culture, known for its vibrant atmosphere and strong work ethic, has undergone a notable shift towards remote work. Companies are open to hiring remote talent, recognizing the flexibility it offers.
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• The growth of startups, government support, and technological advancements have created a conducive environment for remote work, with improved infrastructure ensuring reliable connectivity.
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• Brazil ranks among the top five tech regions in Latin America with over 210 million people. Its diverse talent in IT, engineering, and digital innovation enhances global competitiveness. The tech in Brazil is evolving, making it a prime location for hiring top talent.
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• Brazil also provides a competitive edge with its lower labor costs, making it an attractive destination for international businesses. These advantages position the country as a prime choice for companies looking to expand their remote workforce.

Labor Costs in Brazil vs. USA

When hiring remote workers or contractors in Brazil, U.S. companies can enjoy significant savings and greater workforce flexibility, improving operations and stimulating business growth. Additionally, lower employment costs make Brazil an attractive option for outsourcing talent. Here is the annual average pay in Brazil for highlighted remote roles compared to costs in the United States:

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How to Pay Talent in Brazil

Paying remote Brazilian employees as a U.S. company involves navigating fluctuating exchange rates, the Brazilian real, cost calculator considerations, and ensuring compliance with local laws and regulations.

Bank transfers

A direct and simple payment method to any personal bank account, but it may involve high fees and longer processing times.

PayPal

PayPal offers fast and secure transactions internationally, but it may have relatively high fees and unfavorable exchange rates.

Global payroll providers

Deel, Ontop, and Oyster offer competitive exchange rates, lower fees, faster processing times, and transparent fee structures.

Cryptocurrencies

Like Bitcoin or Ethereum offer decentralization and potentially lower fees, but their regulatory concerns may not suit all employees.
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Hiring Remote Trends in Brazil 2025

• Remote Work Growth: Over 50% of companies in Brazil now offer flexible work models, supported by strong internet infrastructure and global talent access.
• Skilled Workforce: Brazil has 500,000+ software developers, making it a top destination for tech outsourcing in Latin America.
• Labor Compliance: Companies must stay updated on local labor laws to ensure smooth remote hiring.
• Local entity regulations are being simplified for foreign companies.
• HR Tech Adoption: AI hiring tools, candidate tracking, and employee management systems are streamlining recruitment, while AI and automation are optimizing cost calculator tools for payroll.
• Rising Digital Skills Demand: Data analysis, AI, digital marketing, and cybersecurity are increasingly sought after.

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Talent Hubs in Brazil

To achieve successful hiring in Brazil, it is crucial to focus your search on cities exhibiting specific innovation trends in various sectors. Consider the following:

• São Paulo: a financial and cultural hub attracting many remote professionals with diverse skills.
• Rio de Janeiro: recognized for creativity and innovation, ideal for remote talent in content creation, digital marketing, and design.
• Belo Horizonte: a technological and startup center providing remote professionals in software development, IT, and customer support.
• Porto Alegre: focused on education and culture, a source of remote talent in research, academic writing, and virtual assistance.
• Curitiba: with sustainable initiatives, it offers remote talent in project management, engineering, and technical roles, adding value to business growth and culture.

Labor Laws in Brazil

Labor laws in Brazil are robust and designed to protect workers’ entitlements. If you are considering hiring in Brazil, it is crucial to be familiar with and comply with the following regulations:

• Salary Payment: New employees’ salaries are set through employment contracts and collective agreements, either bi-weekly or monthly.
• Minimum Wage: Currently, the minimum wage in Brazil is $265.92 USD per month. It is recommended to offer significantly more competitive salaries than the local average.
• Holidays: Brazil celebrates 12 national holidays per year, including Labor Day and Brazil’s Independence Day.
• Overtime Pay: Employees are entitled to receive compensation for overtime hours if they work more than 44 hours in a standard five-day workweek.
• Vacation pay: After 12 months of work, employees are entitled to up to 30 days of paid vacation, which can be divided into a maximum of three periods.
• 13th Salary: All workers in Brazil are entitled to receive an additional salary equivalent to one month’s pay, in addition to their monthly salary.
• Social Security Benefits: The social security system in Brazil includes healthcare and benefits such as retirement by age.
• Notice period: Employees must provide a days’ notice before leaving a job.
• Probationary period: A probation period lasts up to 90 days.
• Fixed-term contracts: Used for temporary employment agreements.

By diligently complying with these labor regulations and local employment laws, you can ensure a fair and favorable working environment for both your employees and your business.

Holidays in Brazil 2025

To ensure respect for the culture and diversity of your Brazilian team, it is important to consider providing time off on the following 13 national holidays, including New Year on January 1st.

• January 1: New Year
• February 12: Carnival
• February 13: Carnival
• March 29: Passion of Christ
• April 21: Tiradentes Day
• May 1: Labor Day
• May 30: Corpus Christi
• September 7: Independence Day
• October 12: Our Lady of Aparecida
• November 2: All Souls’ Day
• November 15: Republic Day
• December 25: Christmas

By providing this time for employees to celebrate and honor these significant dates, you will strengthen an inclusive and respectful work environment that acknowledges local traditions.

Characteristics of Brazilian Talent

Remote Employment Growth

In Brazil, IT, agribusiness, and finance are great for remote work due to high demand and the digital revolution. Employment opportunities in Brazil are growing, particularly in these sectors.

Exceptional Education Levels

With the world’s highest annual tech graduates and 24% choosing tech careers, the University of São Paulo has a 63.7% graduation rate. This makes Brazil a talent hub for skilled professionals

Top Cities Proficient in English

While English in Brazil is generally lower, São Paulo and Rio de Janeiro have more English-skilled professionals, boosting adaptability in the global work scene. These cities are ideal for companies focused on global hiring and building a strong global team.

Cultural Considerations of Brazilian Professionals

If you are working with a remote Brazilian team, understanding the work environment, Brazil workplace culture, and communication styles in Brazil is crucial. It is marked by a collaborative approach, creativity, and warm communication emphasizing personal relationships.

Additionally, it is essential to consider the work-life balance valued by Brazilians, adapting the company to local regulations and offering compensation packages that account for regional cost of living differences to attract and retain top-tier remote talent.

Start Hiring Remote Brazilian Talent with Lupa Today

Hiring Brazilian employees can diversify your team and boost your Latin American operations. However, cultural knowledge is critical to successfully navigate the hiring process in this country. At Lupa, we excel in aiding US companies hiring in Brazil, to swiftly recruit, interview, and onboard remote talent throughout Latin America, including Brazil, without any complications or risks.

Our experienced recruiters have a deep understanding of the unique requirements of remote contractors and the vast talent pool in Latin America. Using an automated approach and our expansive talent network, we ensure that you find the best fit for your needs, whether in tech, finance, marketing, or other sectors.

For further guidance on compliant hiring practices (recruiting, staffing or RPO) in Brazil, read our related articles or schedule a consultation with our experts for personalized assistance.

FAQs

What are the legal requirements to hire employees in Brazil?

To hire employees in Brazil, companies must comply with Brazilian labor laws, register with the social security system (INSS), and adhere to tax obligations such as Fundo de Garantia do Tempo de Serviço (FGTS) contributions and income tax withholdings. Partnering with Lupa Recruiter simplifies hiring in Brazil by ensuring full compliance and optimizing your recruiting and staffing processes, whether for full-time positions or temporary roles.

How can I hire employees in Brazil without a legal entity?

No, companies can hire employees in Brazil without setting up a local legal entity by partnering with Lupa Recruiter. We streamline the hiring process, ensuring compliance with Brazilian labor laws and regulations, regardless of whether you’re looking for full-time or contract workers.

In what currency do companies pay remote workers in Brazil?

Companies pay in BRL or USD, depending on the agreement. With Lupa’s staffing service, we handle payroll, compliance, and currency conversion, ensuring seamless payments in the preferred currency.

What is the minimum wage in Brazil?

As of January 1, 2025, the minimum wage in Brazil is 1,518 reais per month. Using the exchange rate from January 31, 2025, where 1 real equals approximately 0.1713 U.S. dollars, this equates to about $260.00 USD per month. Please note that exchange rates fluctuate, so the equivalent amount in U.S. dollars may vary over time. This minimum wage applies regardless of years of service.

What is an Employer of Record (EOR) in Brazil?

An Employer of Record (EOR) in Brazil allows companies to hire employees without establishing a legal entity. The EOR manages payroll, employment contracts, tax compliance, and employee benefits.

What are the typical employee benefits in Brazil?

Common benefits include health insurance, 13th-month salary, vacation bonus, paid annual leave, and social security contributions, depending on the job description and year of service.

How does maternity and paternity leave work in Brazil?

Maternity leave lasts 120 days, fully paid, with an option for extension in some cases. Paternity leave is typically five days, with possible extensions under specific programs. Parental leave policies in Brazil provide additional support for working parents, depending on the employer and specific regulations.

What is the standard workweek in Brazil?

The standard workweek is 40 to 44 hours, typically distributed over five or six days, with overtime paid according to labor laws or local laws.

Are there public holidays that affect business operations in Brazil?

Yes, Brazil observes national holidays like Tiradentes Day on April 21 and Republic Day on November 15, along with regional holidays. Employees are generally entitled to paid leave on these days.

What is the 13th-month salary in Brazil?

The 13th-month salary is a mandatory bonus equal to one month's salary, paid in two installments at the end of the year.

How many days of sick leave are employees entitled to in Brazil?

In Brazil, employees are entitled to up to 15 days of paid sick leave per year. During the first 15 days, the employer is responsible for paying the employee's full salary.

Do employees in Brazil receive vacation bonuses?

Yes, employees are entitled to a vacation bonus of at least one-third of their regular monthly salary when taking annual leave.

What language is spoken in Brazil?

The official language of Brazil is Portuguese. However, English is also spoken, especially in tourist areas, business settings, and among remote workers who collaborate with companies from other countries

Do I need a visa to hire a remote worker in Brazil?

No, as a U.S.-based company hiring a remote worker in Brazil, you do not need to sponsor a visa for the employee. The company should comply with Brazilian labor laws, including tax and payroll obligations.