Payroll Services in Brazil

Payroll is one of the most important processes when it comes to employment and human resources management. Due to its complexity and numerous laws to follow, our accountants are the service of all sizes of companies with payroll services in Brazil.

Our accounting specialists work together with our Brazilian lawyers to offer complete payroll and HR solutions, as you will read below.

Payroll services you can rely on us for in Brazil

We list our solutions to help you understand the structure of payroll in Brazil:

• employer registration is the first step of payroll setup;
• employment agreement drafting also enter our personalized payroll solutions in Brazil;
• employee registration is then completed for one or more workers, depending on the hiring moment;
• payroll setup implies creating the salary and employees register;
• payslip generation;
• tax and social contributions withholding;
• management of various types of leaves;
• payroll reporting;
• employment contract amendments (if necessary);
• labor termination and payroll register update.

By working with us, you can choose the services that you need most for your company. With respect to employment matters, our lawyers in Brazil are qualified to advise you on the requirements you need to comply with as an employer.

Tax residency in Brazil for payroll purposes

One of the main reasons our accountants and law firm in Brazil work together is because employment and taxation of labor here depend on the residency of the employee. Tax residency implies:

• having a temporary Brazilian residence permit and work permit, which may or may not imply taxation here;
• having permanent residency in Brazil and living here, which implies paying the income tax in this country.

In the first situation, to be a tax resident implies living at least 183 days within any 12-month period in Brazil (a foreigner arriving with an employment-based residence permit is resident from arrival).

From a tax perspective, employees are subject to the personal income tax, which is levied at progressive rates ranging from 0% to 27.5%, depending on the tax bracket (from 2026, monthly income up to BRL 5,000 is effectively exempt under Law 15,270/2025). Non-residents pay the income tax at a 25% flat rate. The levy is withheld at source upon payroll procedures.

Social contributions in Brazil

Apart from the tax on income, employers and employees must also pay the following social contributions:

• Social Security (INSS);
• Work Accident Insurance (RAT/SAT), which applies based on how risky the activity an employee is;
• the contribution to the Employees Severance Indemnity Fund (FGTS);
• the contribution to the 3^rd party institution;
• the vacation indemnity.

These are the contributions the employer pays. With respect to employees, they must pay Social Security at the following rates:

• income of up to BRL 1,621.00 is levied a 7.50% social security contribution;
• a 9.00% contribution is made for income ranging from BRL 1,621.01 to BRL 2,902.84;
• for income from BRL 2,902.85 to BRL 4,354.27, the payment is 12%;
• for income from BRL 4,354.28 up to the ceiling of BRL 8,475.55, the rate of the contribution is 14%.

Please note that these rates apply to the monthly income. Salary payments can be made monthly or twice a month, however, payroll in Brazil is completed monthly.

Employment regulations in Brazil

Payroll in Brazil is linked to employment. From this point of view, the following rules must be respected, as imposed by the Constitution and the Consolidation of Labour Laws (CLT):

• the working week is up to 44 hours (a constitutional amendment reducing it to 40 hours was still pending in the Senate in October 2026);
• an employee’s shift is 8 hours per day (exceptions may apply in certain sectors);
• work surpassing the maximum hours is considered overtime and is paid at a rate of at least 150% of the usual pay (a minimum 50% premium).

Our lawyers are at your disposal with various services, among which is support in immigration to Brazil. Also, if you already live here, we can assist with the procedure for applying for citizenship in Brazil.

Do not hesitate to contact us for payroll services in Brazil. Our team can also help you start a business in Brazil.