Brazil is one of the fastest-growing markets in Latin America, attracting global businesses with its large consumer base, skilled workforce, and strategic access to South American trade. With a population of over 215 million, the country offers major opportunities in technology, finance, agribusiness, and logistics. Yet, hiring in Brazil is not simple—complex tax systems, strict labor laws, high employer costs, and regional compliance variations make expansion challenging.
For companies entering the Brazilian market, setting up a local entity is often costly and time-intensive, requiring legal filings, tax registrations, and HR infrastructure. This is where a PEO in Brazil or an Employer of Record (EOR) becomes essential. By partnering with the right provider, businesses can hire employees quickly, outsource payroll, stay compliant, and scale seamlessly—all while avoiding risks of penalties and misclassification.
Table of Contents
- What Is a PEO in Brazil?
- PEO vs EOR in Brazil — What’s the Difference?
- Why Use a PEO in Brazil Instead of Setting Up an Entity?
- Key Employment Insights in Brazil
- No Entity? No Problem
- How a PEO Helps With Payroll, Tax & Benefits in Brazil
- Brazilian Labor Laws Made Simple With a PEO
- When to Choose a PEO Over Other Hiring Models
- What to Look for in a Brazil PEO Partner
- Asanify’s Advantage as a PEO in Brazil
- What Does It Cost to Build a Team in Brazil?
- Why Choose a PEO in Brazil?
- Ready to Hire in Brazil? Here’s What to Do Next
- FAQs
What Is a PEO in Brazil?
A Professional Employer Organization (PEO) in Brazil acts as a co-employer, helping international businesses manage HR and compliance while maintaining operational control of their teams.
With a PEO like Asanify, you can:
- Run payroll outsourcing in Brazil (gross-to-net calculations, social contributions, and taxes).
- Provide statutory benefits like 13th-month salary, FGTS contributions, meal vouchers, and healthcare.
- Draft compliant employment contracts aligned with Brazilian labor law (CLT – Consolidação das Leis do Trabalho).
- Manage global contractor management alongside employees.
- Access HR software for automation, compliance tracking, and employee engagement.
- Offer both local and international currency payments, ensuring compliance with tax and social security laws.
For startups, SMBs, and enterprises looking to expand quickly, PEO services in Brazil are the fastest way to test the market and hire employees without setting up a Brazilian subsidiary.
With Asanify’s PEO in Brazil, you can stay focused on growth while we handle HR complexity, payroll compliance, and labor law obligations.
PEO vs EOR in Brazil — What’s the Difference?
Both PEO and Employer of Record models simplify hiring in Brazil, but the two differ in structure.
| Feature | PEO in Brazil | EOR in Brazil |
| Legal Employer | Shared (Client + PEO) | EOR Provider (full legal employer) |
| Entity Requirement | Requires a local entity | No entity required |
| Payroll & HR | Jointly managed | Fully managed by EOR |
| Best For | Companies with an existing entity | Startups testing market |
| Immigration & Visas | Managed by client | Managed by EOR provider |
| Contract Ownership | Client issues contracts | EOR issues compliant contracts |
| Scalability | Long-term HR partnership | Quick entry + exit flexibility |
Asanify offers both PEO and EOR services in Brazil, so you can start lean with EOR and transition to PEO when you establish an entity.
Why Use a PEO in Brazil Instead of Setting Up an Entity?
Setting up a local entity in Brazil requires 6–12 months and costs between $15,000–$30,000+, involving tax registrations, legal filings, corporate bank accounts, and compliance with Brazilian labor law (CLT).
By contrast, a PEO in Brazil allows you to:
- Hire employees in days, not months.
- Avoid complex tax registrations and audits.
- Reduce overhead costs on HR, payroll, and legal.
- Access digital-first HR software for automation.
- Gain local labor law expertise from compliance experts.
- Scale teams in São Paulo, Rio de Janeiro, Brasília, and Recife without opening separate entities.
Asanify’s PEO services in Brazil enable you to hire in Brazil faster, run compliant payroll outsourcing, and focus on business expansion while we manage compliance, contracts, and employee benefits.
Key Employment Insights in Brazil
When you hire in Brazil, understanding labor law requirements is critical. Here are some employment insights:
Payroll:
- Salaries processed monthly (usually on the 5th business day).
- Employers contribute ~28%–32% of salary to social security (INSS, FGTS, and other funds).
- Employees contribute 7.5%–14% to INSS based on salary brackets.
Leave Policies:
- Paid vacation: 30 days annually (after 12 months of employment).
- Public holidays: 12 national + regional holidays.
- Maternity leave: 120 days (extendable to 180 with government program).
- Paternity leave: 5 days (extendable to 20 days in some cases).
- Sick leave: Paid after 15 days (employer covers first 15, INSS after).
Bonuses & Perks:
- 13th-month salary: Mandatory, paid in 2 installments (Nov & Dec).
- Meal vouchers, transport vouchers, and private health insurance are common benefits.
- Performance bonuses are popular in tech, finance, and sales sectors.
Income Tax Brackets (2025):
- 0%: up to BRL 2,640/month
- 7.5%: BRL 2,640–5,282/month
- 15%: BRL 5,282–7,918/month
- 22.5%: BRL 7,918–10,564/month
- 27.5%: above BRL 10,564/month
Cultural Alignment:
- Brazilians value personal relationships in business.
- Hierarchy is respected in decision-making.
- Flexibility and adaptability are highly valued.
With Asanify’s PEO in Brazil, we ensure all payroll outsourcing, taxes, and statutory benefits are handled accurately, while also helping your team navigate cultural expectations.
Suggested Read: Employer of Record Brazil: A Comprehensive Guide on Employer of Record 2025
No Entity? No Problem
With Asanify acting as your PEO in Brazil, you don’t need to open a local entity to start hiring in Brazil.
We act as your compliance partner, handling:
- Employment contracts under CLT law.
- Payroll outsourcing and social security contributions.
- Visa and work permit support for expats.
- Benefits administration and HR software tools.
This allows you to:
- Start hiring in less than a week.
- Avoid the risks of misclassifying contractors.
- Scale your Brazilian workforce cost-effectively.
How a PEO Helps With Payroll, Tax & Benefits in Brazil
Managing payroll in Brazil is complex due to INSS, FGTS, IRRF, and union contributions. A PEO like Asanify handles:
- Monthly payroll processing (gross-to-net).
- Social security filings with Receita Federal.
- FGTS deposits (8% of salary).
- 13th-month salary payments.
- Profit-sharing (PLR) administration.
- Meal and transport vouchers.
- Healthcare and group insurance plans.
With payroll outsourcing in Brazil, Asanify ensures employees are paid accurately and compliantly, while you stay focused on business growth.
Brazil Labor Laws Made Simple With a PEO
Brazil’s CLT labor laws are among the most detailed in Latin America. A PEO simplifies compliance with:
- Working hours: 44 hours/week (8/day standard).
- Overtime: 50% extra pay on weekdays, 100% on Sundays/holidays.
- Probation period: Up to 90 days.
- Termination rules: Notice period + severance pay.
- Severance fund (FGTS): 8% employer deposit monthly.
- Union agreements (CCTs): Sector-specific rules for benefits and pay.
By outsourcing compliance to Asanify, you eliminate risks of penalties, lawsuits, or union disputes.
Asanify’s Advantage: Modern PEO for Brazil
Asanify goes beyond traditional PEO services in Brazil by offering:
- End-to-end onboarding within 72 hours.
- Automated payroll & HR software.
- Real-time compliance monitoring.
- Transparent, flat-rate pricing with no hidden fees.
- Dedicated account managers for local HR support.
- Seamless global contractor management alongside employees.
Our digital-first platform ensures that your expansion into Brazil is fast, compliant, and scalable.
When to Choose a PEO Over Other Hiring Models
A PEO in Brazil is ideal when you:
- Want to test the Brazilian market before setting up an entity.
- Need to hire a small team for short-term projects.
- Are expanding rapidly and require agile HR support.
- Want to reduce HR overhead and payroll risks.
- Require contractor and employee compliance management in one platform.
How to Engage a PEO Like Asanify in Brazil
Getting started with Asanify is simple:
- Initial Consultation – Discuss your hiring needs.
- PEO Agreement – Define roles, compliance, and deliverables.
- Employee Onboarding – Collect and verify employee documents.
- Payroll Setup – Automate salary disbursement and filings.
- Ongoing Support – 24/7 legal, tax, and HR support.
- Transition Support – Shift from PEO to your own entity when ready.
What to Look for in a Brazilian PEO Partner
When evaluating PEOs in Brazil, consider:
- Expertise in CLT labor law and union agreements.
- Speed of onboarding (within 5–7 days).
- Transparent pricing without hidden costs.
- Digital-first HR software with automation.
- Experience with payroll outsourcing and tax filings.
- Ability to manage both employees and contractors.
Asanify checks all these boxes, making us the trusted PEO in Brazil for startups and enterprises alike.
What Does It Cost to Build a Team in Brazil?
The total cost of hiring depends on your approach:
Option 1: Setting Up a Local Entity in Brazil
- Timeline: 6–12 months
- Costs: $15,000–$30,000+ in legal, banking, and compliance fees.
- Best for: Large enterprises with long-term plans.
Option 2: Partnering with a PEO in Brazil
- Timeline: 1 week
- Costs:
| Service Type | Starting From (Per Employee/Month) |
| PEO Solution | $49 USD |
| EOR Solution | $199 USD |
No setup charges, no hidden fees. Scale as you grow.
Why Choose a PEO in Brazil?
- Onboard in days, not months.
- Avoid legal and tax risks.
- Run payroll outsourcing efficiently.
- Provide competitive, compliant benefits.
- Focus on market growth, not admin work.
Suggested Read: Labour Laws in Brazil: A Complete 2025 Guide
Ready to Hire in Brazil? Here’s What to Do Next
Hiring in Brazil doesn’t have to be complicated. By scheduling a free consultation with Asanify, you can align your hiring goals with Brazilian compliance and start building your team seamlessly. With our platform, you can onboard employees in under 7 days, run payroll outsourcing and tax filings, and provide statutory benefits such as the 13th salary, FGTS, and meal vouchers. We also enable you to manage contractors and employees globally while accessing powerful HR software and compliance dashboards. Asanify makes it simple to hire in Brazil, pay teams accurately, and scale your operations with confidence.
FAQs
A PEO requires a local entity; an EOR is the legal employer and needs no entity.
Typically 5–7 business days with Asanify.
13th salary, FGTS, vacation, maternity leave, social security, and meal vouchers.
Yes, we manage visa and work permit applications for expats.
Employers pay INSS, FGTS, IRRF, and other union contributions.
Yes, many companies are required to offer profit-sharing (PLR) agreements.
Typically includes FGTS balance + 40% fine + notice pay.
Yes, Asanify provides global contractor management alongside employees.
We handle salary disbursement, social security filings, and tax submissions.
Yes, Asanify provides smooth transition support.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
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