COUNTRY GUIDE

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Brazil

A short guide to building a dedicated offshore team in Brazil

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At a glance

Capital
Capital:

Brasília

Official language
Official language:

Portuguese

Population
Population:

216.42 million

Timezone
Timezone:

GMT-3

Developers
Developers:

500,000+

Currency
Currency:

Brazilian Real (BRL)

Industry revenue
Industry revenue:

$12B+

Investment
Investments in IT sector

$40B+

global ALLSTARSIT
Capital:

Brasília

Language
Official language:

Portuguese

Population
Population:

216.42 million

Timezone
Timezone:

GMT-3

Developers
Developers:

500,000+

Currency
Currency:

Brazilian Real (BRL)

Industry revenue
Industry revenue:

$12B+

Industry size
Investments in IT sector

$40B+

Why build a team in Brazil

Overview

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.

Top tech hubs

Top tech hubs infographic

Employment Conditions Overview

ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle

Payroll 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.

Employer Taxes

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.

Overtime Pay

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.

Paid Leave

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.

Sick Leave

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.

Public holidays

Notice Period

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).

Grow your team in Brazil with ALLSTARSIT

Setting up an autonomous business venture in Brazil for the purpose of team expansion can be a complex and expensive process, often resulting in significant legal costs.

At the same time, understanding Brazilian labor laws and meeting the expectations of employees involves navigating a web of intricate and demanding challenges. This is compounded by the necessity to obtain accurate and current employment information pertinent to Brazil. Additionally, the administration of contracts and the tracking of invoices through emails and spreadsheets are susceptible to becoming disorganized and error-filled.

In this context, compliance becomes a paramount concern, necessitating strict adherence to Brazilian regulations, particularly in relation to taxes and legal matters.

ALLSTARSIT streamlines this process by offering a comprehensive solution for identifying and hiring employees in Brazil, managing HR and payroll, and automating compliance. Our service simplifies the entire procedure, making it straightforward and free from complications.

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What’s possible with ALLSTARSIT?

Staff Augmentation

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.

Dedicated Teams

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.

EOR / Contractor Management

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.

Staffing & Recruiting

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.

Headhunting

Signing bonuses

Vacancy promotion

Free replacement

Preliminary interviews

HR interviews

HR Operations

Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.

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Non-employee-employer liability

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Managing tech equipment

Retention and risk analysis

Performance reviews

Compensation revision & expense returns

1:1 meetings (180-degree)

Monthly reports

Performance reviews & periodic surveys

Ongoing client and expert support

Our solutions

Hire Employees / Contractors Solution Icon
Hire Employees / Contractors
Offer Corporate Benefits Solution Icon
Offer Corporate Benefits
Onboard & Retain Global Teams Solution Icon
Onboard & Retain Global Teams
Secure Office Space Solution Icon
Secure Office Space
Run Payroll Solution Icon
Run Payroll
Provide Health Insurance Solution Icon
Provide Health Insurance
Implement L&D Program Solution Icon
Implement L&D Program
Provide Health Insurance Solution Icon
Provide Health Insurance
Hire Employees / Contractors Solution Icon

Hire Employees / Contractors

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.

Offer Corporate Benefits Solution Icon

Offer Corporate Benefits

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.

Onboard & Retain Global Teams Solution Icon

Onboard & Retain Global Teams

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.

Secure Office Space Solution Icon

Secure Office Space

Enhance your employees' working experience by offering them the possibility of working from an office or securing a seat in a premium co-working space shared area through ALLSTARSIT.

Run Payroll Solution Icon

Run Payroll

Simplify your HR operations and ensure your employees receive timely and accurate paychecks with ALLSTARSIT's comprehensive payroll solution.

Provide Health Insurance Solution Icon

Provide Health Insurance

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.

Implement L&D Program Solution Icon

Implement L&D Program

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.

Customer Service Support Solution Icon

Customer Service Support

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.

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Brazil

Brazil's IT Industry Overview

Plus

ALLSTARSIT offers to find a dedicated Brazil team for outsourcing at a minimal cost. Dedicated software development in Brazil will allow you to significantly expand the boundaries of your business and improve the quality of work with clients. Our company will help you select the best outsourcing specialists.

Brazil is the leader in IT in Latin America. The IT services market is increasing, fueled by the digitalization of the economy and the growing demand for mobile applications. Brazil is gaining more and more attention as a place for outsourcing dedicated offshore developers from Brazil.

Talent Pool in Brazil and Advantages of Choosing Brazil

Plus
Talent Pool in Brazil

With our help, you can easily find and hire a dedicated development team in Brazil. There is a large number of qualified personnel who have good experience, speak English, and are strong in communication.

Advantages of Choosing Brazil

Among the key advantages of outsourcing a dedicated development team from Brazil with our help, the following should be highlighted:

  • relatively low cost of outsourcing a dedicated offshore team from Brazil;
  • a dedicated IT team in Brazil is capable of completing tasks of any complexity;
  • time zone compatibility allows dedicated teams in Brazil to work according to your company’s schedule;
  • any dedicated software team from Brazil can take a leading position in the development market.

ALLSTARSIT deals with dedicated software developers in Brazil at the highest level, guaranteeing results.

Legal and Regulatory Considerations

Plus

Brazil dedicated developers work by current standard regulations. All specialists work legally, and the country welcomes foreign business investment. Any dedicated project team in Brazil outsources their work legally.

Dedicated Development Team Setup in Brazil

Plus

Suppose you want to choose a dedicated engineering team in Brazil. In that case, you need to decide on the location, select talented personnel, and evaluate the legal features of the business in a particular region. If you need a dedicated developer team from Brazil, then contact ALLSTARSIT.

Communication and Collaboration

Plus

To hire a dedicated team in Brazil, it is essential to use effective recruiting and onboarding methods. This will allow you to achieve better results in your business. You also need to find common interests and ways of communication with the dedicated development team in Brazil.

Challenges and Mitigation Strategies

Plus

When working with a dedicated development team in Brazil, language barriers, time zones, and efficiency problems may arise. We will make outsourcing to a dedicated offshore team in Brazil as simple and comfortable as possible for you.

Outsourcing Trends

Plus

We use modern trends in outsourcing dedicated developers in Brazil. This allows us to ensure that we find the best Brazil-dedicated team to perform business tasks.

Recommendations for Businesses and Future Outlook

Plus

We use the best techniques to attract a dedicated development team in Brazil to ensure the high quality of your business. We use modern technological solutions.

ALLSTARSIT is your reliable assistant in outsourcing dedicated development from Brazil. We are ready to help you assemble and hire a dedicated software development team in Brazil that can perform your tasks effectively. 

Trusted by teams and partners

ALLSTARSIT Client's logo - NetAppALLSTARSIT Client's logo - OracleALLSTARSIT Client's logo - SapALLSTARSIT Client's logo - Johnson&Johnson ALLSTARSIT Client's logo - IntelALLSTARSIT Client's logo - ImpervaALLSTARSIT Client's logo - Cato NetworksALLSTARSIT Client's logo - TaboolaALLSTARSIT Client's logo - YotpoALLSTARSIT Client's logo - NetafimALLSTARSIT Client's logo - NetAppALLSTARSIT Client's logo - OracleALLSTARSIT Client's logo - SapALLSTARSIT Client's logo - Johnson&Johnson ALLSTARSIT Client's logo - IntelALLSTARSIT Client's logo - ImpervaALLSTARSIT Client's logo - Cato NetworksALLSTARSIT Client's logo - TaboolaALLSTARSIT Client's logo - YotpoALLSTARSIT Client's logo - Netafim

ALLSTARSIT office in Brazil

ALLSTARSIT  Office Location
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