Find your employer of record in Brazil

A PEO in Brazil can help you manage the other benefits you can give your workers. Thus, the benefits are as follows:

• Phone allowance.
• Home Office allowance.
• Drugstore allowance.
• Gas/Auto allowance.
• Gym allowance.

Foreigners wishing to work in Brazil must apply for a residence permit and a work visa. With contractor management services, you can apply for a work permit at the Brazilian Ministry of Labor and Employment. In this case, you must present the work contract and other documents required by the authorities.

Also, after receiving approval, you must apply at the Brazilian embassy or consulate in the country of origin of the employee. In addition, the residence and work permit depends on the type of activity that the employee will carry out in the country. Consequently, an employer of record in Brazil can help you get these most requested visas for your employees:

• Temporary work visa (Temporary Visa V). This visa is valid for 2 years but you can renew it for an equal period. However, if the employee works for 4 years in the same company, it can support him in applying for a permanent visa.
• Permanent work visa (Permanent Visa). In this case, it is issued by the authority for foreigners who have the right to receive it. Thus, it is issued to researchers and scientists for activities that exceed two years. It is also for investors who make an investment that exceeds the amount required by the Ministry of Labor and Employment of Brazil.

The standard VAT rate in the country is 17.00%, this is known as Imposto Sobre Circulação de Mercadorias e Serviços or ICMS. However, this rate varies in some regions as follows:

• Acre, Alagoas, Ceará, Espírito Santo, Goiás, Mato Grosso, Mato Grosso do Sul, Pará, Piauí, Rondônia, Roraima and Santa Catarina. These have an ICMS of 17%.
• Amazonas, Amapá, Bahia, Federal District, Maranhão, Minas Gerais, Paraíba, Paraná, Pernambuco, Rio Grande do Norte, Rio Grande do Sul, São Paulo, Sergipe and Tocantins. In these regions, the ICMS is 18.00%.
• In Rio de Janeiro the ICMS is 19.00%.

Termination Process

In the process of laying off an employee, you can turn to a Professional Employer Organization. The termination must be done taking into account a few days notice as long as the cause of the dismissal is not serious. In addition, the notice of dismissal must be in writing and exposed to the government authorities.

Notice Period

The notices are contemplated in the contract or work agreement and are related to the cause of dismissal and the time of service. Thus, an employee who has been working for 1 year will have a 30-day notice. In addition, employees with more than 1 year will receive 30 days plus 3 days for each extra year. In this case, the notice limit cannot be greater than 60 additional days.

On the other hand, if the employee will resign, they must give 30 days of notice. Likewise, if the termination of the contract is by mutual agreement, the term can be reduced by half.

Severance Pay

The Employer of Record services in Brazil will calculate the mandatory severance pay, which depends on the type of termination. Thus, it will depend on whether the termination is made by the employee, whether is it by mutual agreement, justified, unjustified, or the type of contract. Additionally, the law establishes a limit of 10 days after the last day of service of the employee.

The employee commonly receives a salary of one month for each year of service with the company. In this case, the Employer Severance Fund (FGTS) contributes a percentage of the payment.

Probation Period

Trial periods are 90 days for employees.

Paid Time Offs

The EOR in Brazil can pay for annual vacations, which are equivalent to 30 days, including holidays. However, only employees who have completed 1 year of work can receive it. Likewise, the employer must make this calculation based on the monthly salary, adding a bonus.

This bonus will be equivalent to one-third of the salary that is paid per month. Additionally, PEO services in Brazil can do it for you at the beginning of the vacation leave.

The Labor Reform contemplates the division of the license into 3 periods, in which 1 cannot be less than 14 days. Likewise, the other periods cannot be less than 5 days each.

Public Holidays

There are 13 national holidays throughout the year.

Vacation Holidays

There are 30 vacation holidays throughout the year.

Sick Days

Working with an EOR allows you to cancel sick leave for your employees. However, they must first present a medical certification after the first day of illness and within 48 hours.

The calculation of this license is easier if you hire the services of an Employer of Record in Brazil. Thus, the employer will pay the first 15 sick days based on a rate of 100.00% of the salary. Then the INSS is in charge of the payment as a benefit to the worker.

However, this benefit is not based on real salary but rather based on Social Security (INSS) according to the contributions made. In addition, this contribution has a maximum limit of 6,100.00 BRL in general.