Country fileBRBRLVerified 2026-09-20
BR
Employer of Record in Brazil: what one employee really costs
Brazil, Latin America. One software engineer at $36,000 gross per year, priced through 12 providers with a published fee, on the ECB reference rates of 18 Sept 2026. Change the salary and headcount below.
- Employer on-cost
- +50.0%
- statutory charges on top of gross
- All-in per month
- $4,700 – $5,200
- salary + charges + published fee, cheapest to dearest listed provider
- Onboarding through an EOR
- 3 days
- per Deel - Hire employees in Brazil ('your next hire could start in as little as 3 days')
Hiring one software engineer in Brazil at $36,000 gross a year costs about $1,501 a month in statutory employer charges (+50.0%), plus an EOR fee of $199 to $699 per month depending on the provider: $4,700 to $5,200 all-in, before deposits, FX margins and add-ons. Prices checked 2–24 Sept 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to Brazil
Price your own hire, line by line.
employee inatgross / year
≈ BRL 184,891 gross / year · BRL at ECB reference rate, 18 Sept 2026
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $3,000 | |
| INSS employer contribution (social security) | 20% | $600 |
| RAT / SAT work-accident contribution, grade 2 with a neutral FAP | 2% | $60 |
| Terceiros / Sistema S levies (FPAS code 515) | 5.80% | $174 |
| FGTS severance fund deposit | 8% | $240 |
| 13th salary (gratificacao natalina) | flat | $250 |
| Vacation bonus (one third of a month's salary) | 2.78% | $83 |
| INSS, RAT and FGTS due on the 13th salary and the vacation bonus | 3.11% | $93 |
| Employer on-cost | +50.0% | $1,501 |
| Cost of employment, before EOR fee | $4,501 |
RemoFirstLowest total
$4,700/ month · 1 employee
- Fee / mo
- from $199
- Per year
- $56,396
- Fee share
- 4.2%
Checked 2 Sept 2026
Get a RemoFirst quotePapaya Global
$5,000/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $59,996
- Fee share
- 10.0%
Checked 2 Sept 2026
Get a Papaya quoteDeel
$5,100/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $61,196
- Fee share
- 11.7%
Checked 2 Sept 2026
Get a Deel quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
14 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Deposit | Countries | Checked | Quote |
|---|---|---|---|---|---|---|
| RemoFirst EOR in 185+ countries from $199 per employee per month, no annual contract. | from $199 | $4,700 | Not stated on the pricing page | 185+ | 2 Sept 2026 | Get a quote from RemoFirst· $4,700/mo |
| Rivermate EOR in 180+ countries from $319 to $639 per employee per month. | from $319 | $4,820 | Not stated on the pricing page | 180+ | 2 Sept 2026 | Get a quote from Rivermate· $4,820/mo |
| Pebl Velocity Global, renamed Pebl in 2026. Prints $399 per employee per month. | from $399 | $4,900 | Not stated on the pricing page | 185+ | 22 Sept 2026 | Get a quote from Pebl· $4,900/mo |
| Playroll EOR in 180+ countries from $399 per employee per month; deposit of one month's salary. | from $399 | $4,900 | Fully refundable security deposit equivalent to one month's salary when onboarding an employee (pricing page). | 180+ | 2 Sept 2026 | Get a quote from Playroll· $4,900/mo |
| Multiplier EOR from $459 (annual) or $499 (monthly) per employee, plus mandated add-ons. | from $499 $459 billed annually | $5,000 | Refundable security deposit required per employee by the EOR terms (effective 1 June 2026), sized by Multiplier; not on the pricing page. | 150+ | 24 Sept 2026 | Get a quote from Multiplier· $5,000/mo |
| Papaya Global EOR starting from $499 per employee per month, quote-based, 160+ countries. | from $499 | $5,000 | Not stated for EOR on the pricing page (the contractor block states 'No deposit required'). | 160+ | 2 Sept 2026 | Get a quote from Papaya Global· $5,000/mo |
| Borderless AI EOR at $579 per employee per month, no deposit or pre-funding, 170+ countries. | $579 | $5,080 | No deposit: 'No upfront deposits or pre-funding required' (pricing page). | 170+ | 24 Sept 2026 | Get a quote from Borderless AI· $5,080/mo |
| Atlas HXM EOR from $599 through its own entities, plus an Agent of Record at $199. | from $599 | $5,100 | Not stated on the pricing page | 160+ | 21 Sept 2026 | Get a quote from Atlas HXM· $5,100/mo |
| Deel EOR in 130+ countries, starting at $599 per employee per month. | from $599 | $5,100 | Not stated on the pricing page | 130+ | 2 Sept 2026 | Get a quote from Deel· $5,100/mo |
| G-P EOR in 180+ countries from $599, with no minimum contract length. | from $599 | $5,100 | Not stated on the pricing page | 180+ | 24 Sept 2026 | Get a quote from G-P· $5,100/mo |
| Oyster EOR in 120+ countries at USD 699 per employee per month; refundable deposit. | $699 | $5,200 | Refundable deposit required for EOR team members 'to initiate the engagement and to ensure on-time payments' (pricing FAQ). | 120+ | 24 Sept 2026 | Get a quote from Oyster· $5,200/mo |
| Remote EOR in 90+ countries at $699 per employee per month, no deposit. | $699 | $5,200 | No deposit: 'We collect reserve payments in rare, high risk circumstances' (pricing FAQ). | 90+ | 2 Sept 2026 | Get a quote from Remote· $5,200/mo |
| Rippling EOR bundled with the Rippling platform; custom quote only. | Quote only | — | Not stated on the pricing page | — | 24 Sept 2026 | Get a quote from Rippling |
| Safeguard Global EOR sold alongside entity setup and payroll; no price published. | Quote only | — | Not stated | 187+ | 21 Sept 2026 | Get a quote from Safeguard Global |
Same salary and statutory charges in every row; only the fee segment changes.
What Brazil adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling. Engine assumptions: RAT accident rate at grade 2 = 2% (the employer of record's own activity, CNAE 7830-2/00, supply and management of human resources for third parties) = 2; FAP accident-prevention multiplier at its neutral value of 1.0 (legal range 0.5 to 2.0) = 1.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| INSS employer contribution (social security)Every employee and casual worker on the payroll, with no salary ceiling | 20% | Gross salary The single most misread line in Brazil. The 'teto' that caps Brazilian social security contributions applies only to the employee's own base, the salario-de-contribuicao of articles 20, 21 and 28 paragraph 5. The company's contribution has a different base and no ceiling: article 22 charges 20% on 'o total das remuneracoes pagas, devidas ou creditadas a qualquer titulo'. A senior hire in Brazil therefore carries the full 20% on every extra dollar, unlike Japan, Germany or Poland where the employer charge stops. | Lei no 8.212 de 24 de julho de 1991 (consolidada), art. 22, I2026-09-20 |
| RAT / SAT work-accident contribution, grade 2 with a neutral FAPEvery employer, at 1%, 2% or 3% of the same uncapped base according to the risk grade of its preponderant activity, then multiplied by its own FAP between 0.5 and 2.0 | 2% | Gross salary Article 22, II of Lei 8.212/1991 sets 1% for light risk, 2% for medium and 3% for high, on the same uncapped base as the 20% above. The grade comes from the employer's CNAE class in Annex I of Instrucao Normativa RFB 971/2009: 6201-5/01 software development is grade 1, while 7830-2/00 human resources supply to third parties and 7020-4/00 management consulting are grade 2. Modelled at grade 2 because under an EOR the provider is the employer of record. Lei 10.666/2003 art. 10 then allows the rate to be cut by up to half or doubled through the FAP. | Lei no 8.212/1991 art. 22, II and Receita Federal, IN RFB no 971/2009, Anexo I (risk grade by CNAE)2026-09-20 |
| Terceiros / Sistema S levies (FPAS code 515)Commerce and services payrolls under FPAS code 515; an industrial payroll (code 507) swaps SENAC and SESC for SENAI and SESI at the same rates, for the same 5.8% total | 5.80% | Gross salary Five separate levies collected with the INSS on the same uncapped base: Salario-Educacao 2.5%, INCRA 0.2%, SENAC 1.0%, SESC 1.5% and SEBRAE 0.6%. The 5.8% total and the split are read on the official eSocial FPAS/Terceiros table published by the federal government; the 3.3 points made up of INCRA, SENAC, SESC and SEBRAE are taken from that administrative table rather than from each founding statute read separately. On the old 20-minimum-wage ceiling for these levies, the Superior Tribunal de Justica settled repetitive theme 1.079 on 23 February 2026 against the ceiling for SENAI, SESI, SESC and SENAC, so the line is modelled uncapped. | gov.br/eSocial, official technical documentation, FPAS and Terceiros tables (code 515: 2.5 + 0.2 + 1.0 + 1.5 + 0.6 = 5.8%)2026-09-20 |
| FGTS severance fund depositEvery employee, monthly, on pay including the 13th salary; deposited into a blocked bank account in the employee's own name | 8% | Gross salary Article 15 of Lei 8.036/1990 obliges every employer to deposit 8% of the pay owed for the previous month into a 'conta bancaria vinculada', explicitly including the Christmas bonus of Lei 4.090. It is money the employee eventually draws, not a tax, but it is a real employer outlay from the first payslip. Dismissal without cause adds a 40% penalty on everything deposited over the life of the contract, which is carried separately below. | Lei no 8.036 de 11 de maio de 1990 (consolidada), art. 152026-09-20 |
| 13th salary (gratificacao natalina) | 1 month | Added to the annual costOne extra month of pay per calendar year, at 1/12 per month worked, with any fraction of 15 days or more counting as a whole month. Usually paid in two instalments, an advance by the end of November and the balance by 20 December. Because it is pay, it carries its own INSS, RAT and FGTS, which is the line below. | Lei no 4.090 de 13 de julho de 1962, art. 1 paragraphs 1 and 22026-09-20 |
| Vacation bonus (one third of a month's salary) | 2.78% | Added to the annual costThe 30 days of annual leave are paid at normal salary, so they are already inside the gross above; what is extra is the constitutional bonus of at least one third of normal pay on top of the holiday. One third of one month spread over twelve is 2.78% of annual gross. Modelling the whole vacation month as an extra cost, as several cost guides do, double counts the salary. | Constituicao Federal de 1988, art. 7, XVII (leave paid with at least one third more than normal salary) and CLT art. 130, I (30 calendar days)2026-09-20 |
| INSS, RAT and FGTS due on the 13th salary and the vacation bonus | 3.11% | Added to the annual costThe charge almost every cost page leaves out. The 13th salary is pay, so it attracts the 20% INSS, the 2% RAT and the 8% FGTS: 8.33% x 30% = 2.50% of annual gross. The vacation bonus attracts the employer social contribution as well, which was contested for years and is now settled: on 18 March 2026 the Superior Tribunal de Justica reported that its Second Panel 'readequou seu entendimento para reconhecer a incidencia da contribuicao previdenciaria patronal sobre o terco constitucional de ferias gozadas', following the Supreme Court's general-repercussion ruling in theme 985, and that the Supreme Court limited the effect of the new position to periods from 15 September 2020 onwards. That adds 2.78% x 22% = 0.61%. Total 3.11%. Two amounts are deliberately left out for want of a source read directly: the Terceiros levies on both items, and FGTS on the vacation bonus. The real figure is therefore slightly above this one, never below. | Superior Tribunal de Justica2026-09-20 |
| FGTS termination penalty, 40% of all deposits (dismissal without cause only) not in total | — | Carried at zero because it is contingent, not recurring: it falls due only when the employer dismisses without just cause, and then it is 40% of everything deposited over the whole contract, restated for inflation and interest. On a three-year hire that is roughly one month of salary handed over on the way out. It belongs in a severance budget, not in a monthly on-cost, but it is the reason Brazilian termination is expensive and it is worth asking a provider how it funds the line. | Lei no 8.036/1990 (consolidada), art. 18 paragraph 12026-09-20 |
| Payroll relief (CPRB) - not available on an EOR hire not in total | — | Brazil has an optional sectoral regime, the desoneracao da folha of Lei 12.546/2011, arts. 7 to 9-A, that lets the listed activities pay a percentage of gross revenue (the CPRB, set by sector in arts. 7-A and 8-A) instead of the 20% INSS employer contribution on payroll. Lei 14.973/2024 phases it out: for 1 January to 31 December 2026, a company still in the regime pays 60% of its CPRB rate on revenue plus 50% of the payroll rate, which is 10% of payroll, with no payroll contribution on the 13th salary between 2025 and 2027; in 2027 it pays 40% of the CPRB rate plus 75% of the payroll rate, and the full 20% returns from 2028. The list of eligible activities in the compiled text is closed and identified by activity class, service code or product code (IT and call-centre services, passenger transport, construction, infrastructure, listed manufacturers and a few others), and employment or staffing services are not on it. The line is carried at zero because the employer of record is a human resources supplier, so the relief does not reach your hire even if your own Brazilian subsidiary would qualify; it changes nothing in the total either way. | Lei no 12.546/2011 (texto compilado), arts. 7, 7-A, 8-A and 9-A as amended by Lei no 14.973/2024, art. 9-A item II (2026 proportions)2026-09-24 |
| Employer on-cost at $36,000 | +50.0% | $18,008 a year, $1,501 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
Brazil makes a strong case for using a provider rather than opening your own company. Deel's own Brazil page states the alternative plainly: hiring directly needs an entity, which means a local office, an address registered as a subsidiary and a Brazilian bank account, and it puts that at months against three days through its EOR. The statutory charges are identical either way, so the entity question is about the fixed overhead and the exit. Two Brazilian specifics push the answer further than usual: the employer contribution has no salary ceiling, so a high-paid team does not get cheaper per head as it grows, and dismissal without cause costs 40% of every FGTS deposit ever made, which a foreign parent has to fund locally. The usual crossover of five or more permanent local hires still applies, but the termination exposure is the line to model before the payroll savings.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Borderless AI fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $6,948 | $18,008 |
| 3 | $7,164 | $20,844 | $54,025 |
| 5 | $11,940 | $34,740 | $90,042 |
| 10 | $23,880 | $69,480 | $180,084 |
| 20 | $47,760 | $138,960 | $360,168 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 30 days
- Public holidays
- 9
- 13th month
- Mandatory
- Probation
- up to 3 months
- Notice
- Thirty days, plus three days for each year of service with the same employer up to sixty extra days, giving a statutory maximum of ninety days (CLT art. 487 and Lei 12.506/2011).
- Reviewed
- 2026-09-20
Get a quote for Brazil.
The lowest published total here, next to the two providers searched for most often (the rule). Totals for 1 hire at $36,000. Ask each provider about deposits, FX margins and mandatory add-ons for Brazil: those are the lines that move.
Get a RemoFirst quote· $4,700/mo Get a Papaya quote· $5,000/mo Get a Deel quote· $5,100/mo
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much does an employer of record cost in Brazil?
- Statutory employer charges run at about 50% of gross salary: 20% INSS, 2% RAT at grade 2, 5.8% Terceiros and 8% FGTS every month, then the 13th salary, the vacation bonus and the social charges due on both. On a US$36,000 salary that is roughly US$1,500 a month on top of salary. Published EOR fees then run from about $199 to $699 per employee per month, so the all-in cost lands near $4,700 to $5,200 a month depending on the provider.
- Why do providers quote 35.9% when this page says about 50%?
- Because 35.9% is only the monthly line. Deel's Brazil page itself prints 35.90% and then lists the 13th salary and the vacation bonus separately under 'Annual Costs', which is accurate but easy to misread as the whole employer cost. Those two items plus the INSS, RAT and FGTS that fall on them add roughly 14 points. Budget the full figure, then ask the provider in writing whether its quote includes them.
- Is there a ceiling on Brazilian employer social security?
- No, and this is the most common mistake in Brazilian cost modelling. The ceiling on the salario-de-contribuicao applies to the employee's own deduction. The company's 20% and its RAT are charged on 'o total das remuneracoes' with no cap at all, so a senior hire carries the same percentage as a junior one. Brazil behaves the opposite way to Japan or Germany, where the employer charge stops at a ceiling.
- Is the 13th salary mandatory in Brazil?
- Yes. Lei 4.090/1962 makes the gratificacao natalina a legal entitlement, accrued at 1/12 of December pay for each month worked, with a fraction of 15 days or more counting as a full month. It is normally paid as an advance by the end of November and the balance by 20 December, and it carries its own INSS, RAT and FGTS.
- Can I hire someone in Brazil without a local entity?
- In practice you need a local presence or a provider. Deel's own Brazil page puts it plainly: 'usually, to hire in Brazil, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank', which it says can take months, against three days through its EOR. So the realistic routes are an employer of record, your own Brazilian entity, or engaging the person as a contractor. Whether a given person may lawfully be a contractor is a legal question for a qualified adviser; this site prices the routes once that is settled.