Brazilian Real (BRL)
Brazilian Real (BRL)
Brazil, situated in South America, is a burgeoning tech powerhouse driven by a robust talent pool and a thriving IT sector. With over 100,000 graduates emerging annually from strong IT higher-education programs, Brazil's workforce is well-prepared for the demands of the tech industry.
Florianópolis, often referred to as "Brazil's Silicon Valley," stands out as a major tech hub. This vibrant city boasts numerous universities and research institutes that produce talented professionals skilled in both software and hardware development. It's a hotbed of innovation and a prime location for tech-driven businesses.
The Brazilian IT market is booming, with a valuation of $46.2 billion. According to a report by the Brazilian Software Association (ABES), it's projected to grow by 8.2% in 2022. Brazil holds a prominent position on the global IT stage, ranking 10th in the world market and representing a staggering 40% of the Latin American market.
This growth is indicative of Brazil's commitment to technological advancement and its position as a significant player in the global tech landscape. With a rapidly expanding IT sector, a skilled workforce, and a strategic location, Brazil is an attractive choice for businesses seeking software development excellence and access to the thriving Latin American market.
ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle
In Brazil, employees are paid on a monthly basis, typically following a schedule determined by their employment agreement. Salary calculations are done monthly, with advances typically distributed between the 15th and 20th of each month, and these advance payments do not have taxes withheld.
When it comes to termination pay, it must be disbursed no later than 10 days after the termination date.
The payroll cycle in Brazil generally operates on either a bi-weekly or monthly basis, with employees receiving their payments on the 15th and 30th of each month.
When you hire Brazilian workers, you typically have an INSS tax responsibility of 20%, which is determined based on each employee's monthly salary and managed through your payroll system. Nevertheless, specific industries may impose extra obligations that increase this rate by 1 to 2%. For instance, the IT sector might need to calculate their obligation using the company's net revenue rather than payroll figures.
Any work exceeding the standard 44 hours per week qualifies as overtime, subject to regulation by the employment contract, collective agreements, and related documents. Typically, the maximum daily limit for overtime is set at 2 hours, compensated at a rate of 150.00% of the regular salary.
When employees work on a holiday, they are entitled to receive compensation at a rate of up to 200.00% of their standard pay.
In Brazil, paid leave is specified in the employment contract, guaranteeing a minimum of 30 days of paid vacation per year, typically granted after one year of service, in addition to public holidays.
The calculation for this leave includes the monthly salary along with an extra one-third of the monthly salary, and it must be disbursed two business days prior to the commencement of the leave.
As per the Labor Reform, there is an option to split the paid leave period. Employees can divide their leave into up to three segments, with one of them being a minimum of 14 days and the others each lasting at least five days.
Every employee has the right to receive paid sick leave and is required to submit a medical certificate within 48 hours from the onset of illness.
For the initial 15 days of sick leave, the employer covers the payment, providing compensation at a rate equivalent to 100.00% of the standard salary rate. Following this period, the responsibility for sick pay transitions to the Social Security (INSS) as a benefit payment to the employee.
It's worth noting that this benefit is not an exact match to the employee's regular salary; rather, it's calculated based on INSS contributions and is subject to a cap, generally around 6,100.00 BRL.
Public and Provincial Holidays
There are 13 national holidays in Brazil. Other additional holidays may apply depending on the region.
The minimum required notice period under statutory regulations is 30 days, although some agreements might specify longer notice periods, with a maximum limit of 90 days. Additionally, for each year of employment, an extra 3 days' notice is added to the standard 30 days. Employers also have the option to provide compensation instead of notice. In cases of termination with cause, such as gross misconduct, no notice period is necessary. When termination occurs through mutual agreement, the notice period can be halved if both parties consent to it.
Employees who continue working during their notice period are entitled to a reduced work schedule, shortened by two hours daily or seven days in total, while still receiving their full compensation. To be eligible for this right, the employee must have been employed for at least 12 months.
13th Month Bonus
In Brazil, employees are entitled to receive a mandatory 13th-month salary payment at the end of the year.
Employees who have completed a full 12 months of service are eligible to receive the entire payment, while those who have worked for a portion of the year will receive a payment proportionate to their period of employment.
The 13th-month payment is divided into two installments: one in November, equivalent to the first six months worked (with no INSS deduction or withholding taxation), and the second in December (subject to INSS contribution and withholding tax).
Setting up a separate business entity in every location where you plan to hire employees or a team is time-consuming and incurs high legal fees.
At the same time, navigating local labor laws and adhering to employee expectations can be a complex and challenging task, as is finding accurate and up-to-date employment information for all your potential hiring locations. Not to mention that tracking invoices and managing employee contracts through email and spreadsheets is messy and error-prone.
Compliance is critical in this context, and we must ensure that we follow local guidelines, particularly regarding taxes and legalities.
ALLSTARSIT streamlines the process by offering an integrated solution for finding and hiring employees, managing HR and payroll, and automating compliance across 20+ countries. All simple and hassle-free.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Tap into a wide talent pool of top-tier engineers from our database. We will find the right fit for your business and help you reduce your hiring timeline.
Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.
Managing tech equipment
Retention and risk analysis
Compensation revision & expense returns
1:1 meetings (180-degree)
Performance reviews & periodic surveys
Ongoing client and expert support
Expand your business globally and hire employees or contractors quickly and efficiently by partnering with ALLSTARSIT, who can act as your EOR/CM and handle the administrative and legal aspects of their employment while you control their workload.
Improve your employees' well-being and job satisfaction by offering them a range of corporate benefits through ALLSTARSIT, including wellness consultant sessions, music lessons, workations, gym compensation, and employee recognition programs.
Keep track of your team's progress and satisfaction with ALLSTARSIT's monthly reports and periodic surveys, allowing you to identify any issues and make necessary adjustments to retain top talent.
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Increase your employees' satisfaction and productivity by providing them with the peace of mind that comes with having access to a reliable and comprehensive health insurance package made possible by ALLSTARSIT.
Invest in your employees' professional development by implementing a comprehensive L&D program that includes access to online education platforms, language classes, and technical meetups, courtesy of ALLSTARSIT.
Build a Customer Care or a Customer Support team to ensure that your business excels in providing exceptional assistance to your customers.
Whether you need a team of professionals that can handle relationship building and product knowledge or a group of Tier 1/2/3 engineers that can help with troubleshooting and other technical issues, ALLSTARSIT can help you find, hire and manage them.