Do I need a local legal entity to hire someone in Brazil?
No. An EOR acts as the employer of record in Brazil, so you can hire without setting up a Brazilian CNPJ or legal entity. The EOR holds the employment contract, runs payroll in BRL, and handles all statutory obligations on your behalf. You manage the work; the EOR manages the compliance.
How fast can I onboard a new employee in Brazil through an EOR?
Onboarding timelines vary by provider, but Employ Latam can have a new hire live in one to three days once all required documents are submitted. Most other providers in this list quote three to five business days for Brazil. The main variable is how quickly the employee provides their CPF, bank details, and signed contract.
What does it cost to use an EOR in Brazil?
EOR fees for Brazil start from $349 per employee per month with Employ Latam, and range up to $599 or more with larger generalist platforms. Keep in mind that employer statutory contributions in Brazil run at approximately 21% of gross salary, which is separate from the EOR fee and is factored into the total employment cost. Most providers include statutory contributions in their payroll calculation, but confirm this before signing.
What is the 13th-month salary in Brazil and how is it handled?
The 13th-month salary (décimo terceiro salário) is a mandatory annual bonus equal to one month of the employee's gross salary, paid in two installments: the first by the end of November and the second by December 20. All reputable EOR providers handling Brazilian payroll include this in their service. Confirm with your provider that the accrual is tracked monthly so there are no surprises at year end.
What is the difference between hiring an employee and a contractor in Brazil?
Hiring through an EOR creates a formal employment relationship under Brazilian CLT (Consolidação das Leis do Trabalho), which entitles the worker to statutory benefits including 22 days of annual leave, 13th-month salary, FGTS contributions, and notice periods. Engaging a contractor is faster and cheaper upfront, but Brazil has strict misclassification rules: if the work relationship looks like employment (regular hours, supervision, exclusivity), authorities can reclassify the contractor as an employee with back-pay obligations. For ongoing, integrated roles, EOR employment is the safer path.
