Employer of Record

Hire in Brazil with an Employer of Record

A new hire in Brazil needs eSocial admission registration before day one, plus an employment agreement matched to the role — verbal or tacit agreements are allowed, though fixed-term, experience and intermittent contracts must be written. FGTS adds to every payroll cycle. Share the role and start date, and PIO confirms the arrangement and coordinates the rest.

Illustration representing hiring an employee in Brazil through PIO's Employer of Record service

What to plan for

Practical points to line up before you hire in Brazil.

Payroll processing & eSocial reporting

Brazilian employers report hiring, payroll changes and other labor events through eSocial, the government's unified digital reporting system, alongside standard payroll processing. We help make sure your hire's information flows into that system correctly.

Source:General Web Manual

FGTS contributions

Employers make ongoing contributions to each employee's FGTS account — a government-administered severance guarantee fund — through the FGTS Digital system. Plan for this as part of the full cost of employment, not just gross salary.

Source:Get to Know FGTS DigitalFGTS Digital Guidance Manual

Formal hiring registration

A new hire in Brazil is formally registered through the eSocial system as part of the admission process, alongside the employment contract. We help make sure this registration step lines up with your target start date.

Source:General Web Manual

Termination reporting & FGTS account handling

Ending employment in Brazil involves reporting the termination event through eSocial and settling how the employee's FGTS account is handled through FGTS Digital. We help you plan an exit that keeps this reporting and documentation in order.

Source:General Web ManualGet to Know FGTS Digital

What PIO helps coordinate / What you provide

What PIO helps coordinate

Once your hire is confirmed, here's what we help you coordinate.

  • Confirming country availability and the arrangement for your hire
  • Coordinating the information and documents needed for onboarding
  • Confirming how contract, payroll and statutory responsibilities are handled in your arrangement
  • Explaining the process for changes, leave and offboarding

What you provide

You stay in control of the decisions that are yours to make.

  • The role, compensation and any company-specific policies
  • Final approval on the offer and any changes to it
  • A point of contact for escalations during employment

How it works

A straightforward path from sign-up to your employee's first day.

  1. Step 1

    Tell us about the hire

    Share the role, the work location and your target start date, and we'll confirm the available arrangement for that hire.

  2. Step 2

    We coordinate onboarding

    Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.

  3. Step 3

    Your employee starts

    You manage the day-to-day relationship; we help coordinate the recurring administration within your arrangement.

Frequently asked questions

Is a written employment contract required before someone starts work in Brazil?

Not universally — Brazil's CLT recognizes employment contracts made verbally, tacitly or in writing, though specific arrangements such as fixed-term, experience and intermittent contracts do require written documentation. Either way, the hire's eSocial admission registration still needs to be completed before the employee's first day.

Source:Consolidation of Labor Laws (CLT)General Web Manual

Is the FGTS contribution the same as severance pay in Brazil?

Not quite — FGTS is an ongoing monthly contribution employers make into each employee's account through the FGTS Digital system, not a one-time severance payment calculated only when someone leaves. It builds up for as long as the employment lasts, and how that account gets handled becomes part of the termination process. Budget it as a recurring cost alongside salary from day one, not a bill you only face at exit.

Source:Get to Know FGTS DigitalFGTS Digital Guidance Manual

Can I use PIO to start an EOR hire in Brazil?

Yes — sign up to confirm the role, the candidate and the country details, and we'll confirm the available arrangement for your hire, including how the contract, payroll and statutory responsibilities are handled.

What happens with eSocial and FGTS when we end an employment in Brazil?

Ending employment in Brazil means filing the termination event through eSocial and settling the employee's FGTS account through FGTS Digital, on top of any final-pay terms set out in the contract. We help you sequence the filing, the FGTS settlement and the last paycheck so they land in order.

Source:General Web ManualGet to Know FGTS Digital

What do we need to provide to get a Brazil hire started?

You provide the role details, compensation and any company-specific policies, plus final approval on the offer. We coordinate the local paperwork and payroll setup around what you decide.

4 official sources

Practical guidance is grounded in these official references, but local law and public requirements can change and should be reconfirmed. Your PIO contract and quote govern only PIO's service scope, terms and fees.

Ready to hire in Brazil?

Sign up to start an EOR hire in Brazil. Share the role, the work location and your target start date, and we'll confirm the available arrangement — or book a demo first to talk it through with our team.