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Country file

What it costs an employer to hire in Brazil

An employer in Brazil pays R$259,440 on a gross salary of R$180,000. That is 44.1% more than the salary.

At R$360,000 the employer adds 44.1%, because the contributions are largely uncapped.

Every rate below comes from a statutory source with the date it was read. The figures are for 2026.

A mid salary of R$180,000

Employer-side statutory contributions on a gross salary of R$180,000 a year. Each line is capped at the range shown, so the amount is the rate applied to the part of the salary that falls inside that range.
ContributionRateAnnual base chargedAmountSource
INSS, employer share20.00%no ceilingR$36,000source checked 2026-08-21
Sistema S and third-party levies (SESI, SENAI, SEBRAE, INCRA, education levy)5.80%no ceilingR$10,440source checked 2026-08-21
RAT, occupational accident insurance, medium risk class2.00%no ceilingR$3,600source checked 2026-08-21
Statutory employer contributionsR$50,040

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Everything the law obliges the employer to pay. It excludes anything discretionary, anything an EOR charges, and any insurance premium that is set per employer rather than by statute.
Gross salaryR$180,000
Statutory employer contributionsR$50,040
Mandatory extra pay (1 months)R$15,000
Mandatory severance accrual (8%)R$14,400
Total employer costR$259,440
Added on top of the salary44.1%

A senior salary of R$360,000

Employer-side statutory contributions on a gross salary of R$360,000 a year. Each line is capped at the range shown, so the amount is the rate applied to the part of the salary that falls inside that range.
ContributionRateAnnual base chargedAmountSource
INSS, employer share20.00%no ceilingR$72,000source checked 2026-08-21
Sistema S and third-party levies (SESI, SENAI, SEBRAE, INCRA, education levy)5.80%no ceilingR$20,880source checked 2026-08-21
RAT, occupational accident insurance, medium risk class2.00%no ceilingR$7,200source checked 2026-08-21
Statutory employer contributionsR$100,080

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Everything the law obliges the employer to pay. It excludes anything discretionary, anything an EOR charges, and any insurance premium that is set per employer rather than by statute.
Gross salaryR$360,000
Statutory employer contributionsR$100,080
Mandatory extra pay (1 months)R$30,000
Mandatory severance accrual (8%)R$28,800
Total employer costR$518,880
Added on top of the salary44.1%

The formula

total employer cost = gross salary + sum over each statutory contribution of rate x max(0, min(salary, ceiling) - band floor) (zero if the contribution applies only below a wage the salary exceeds) + gross salary x (mandatory extra months / 12) + gross salary x mandatory severance accrual rate

Time off, extra pay and leaving

Statutory paid leave30 days
Public holidays10
Mandatory extra pay1 months
Minimum employer notice4 weeks

30 calendar days of paid vacation a year under the CLT, plus 10 national holidays confirmed for 2026.

The 13th month salary is statutory and paid in two installments, in November and December.

FGTS: the employer deposits 8% of monthly pay into a blocked employee account. On unjustified dismissal the employer also pays a 40% penalty on the whole FGTS balance.

What the percentage hides

The employer INSS contribution and RAT are uncapped. Unlike the employee side there is no ceiling, so the burden does not fall on a senior salary.

The Sistema S rate varies by sector code. 5.8% is a representative figure, not a universal one.

Statutory notice is 30 days up to one year of service, plus three days per additional year, capped at 90 days.

Companies under the Simples Nacional regime pay a single consolidated rate instead of the itemized structure above.

Not confirmed on a statutory source, and therefore not in any figure above: the Sistema S rate for a specific sector code.

Using an employer of record in Brazil

Everything above is what the state takes. An employer of record adds its own fee on top, and that fee is a flat monthly amount rather than a percentage, so it weighs far more on a junior salary than a senior one. The published prices are here, and the calculator will add one to the figures on this page.

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Written by Kaz, independent publisher. No commercial relationship with the providers named unless it is listed on the disclosure page.

Page last updated 2026-08-30. Sources: statutory bodies only, listed per figure. Rates last verified 2026-08-21. This is not legal, tax or payroll advice and we do not file anyone's payroll.

Every formula on this site is written out in full on Method. Ordering is by computed cost, never by what a provider pays us.

Corrections: contact form.