Contractor Payroll in Brazil

Positioning a candidate internationally means navigating unfamiliar tax and payroll systems. Not only does this generally mean more work for you, but even small missteps can have serious financial or even legal consequences.

If you want to successfully place a contractor, you should first familiarize yourself with the contractor payroll process in Brazil, as well as how you can make the situation simpler.

Contractor Payroll in Brazil

Payroll options in Brazil

There are several different options for payroll in Brazil:

  • The client can provide payroll for the contractor, but not all clients offer this for temporary workers.  
  • The contractor can do it on their own, but this creates serious risk for the end client and possibly your agency, as well. Like most people, many contractors do not specialise in Brazil’s tax system, nor do they always have the time or means to pore over complex tax returns.
  • Your contractor can use a local payroll company.

The third option is the simplest and quickest. An even simpler and quicker option is to use an Umbrella Company, as they offer the same services as a local payroll provider in addition to other services that simplify international assignments (such as Work Permit sponsorship).

Check out our FAQ for specific quotes on payroll providers and Umbrella Companies. 

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Questions and Answers about Payroll in Brazil

Q: How does payroll work in Brazil?
A: much the same as it does globally. Your employer (the company sponsoring your visa) pays the employee on a monthly basis after deducting social security, income tax and payroll tax (estimated at 31% by the World Bank). These deductions are paid direct to the Brazil tax authorities. Candidates are able to offset their taxable income with relevant business expenses. The World Bank estimates it takes employers in Brazil an extraordinary 490 man days to ensure compliance with payroll and labour taxes each year! This is one of the major reasons why outsourcing Brazilian payroll is so attractive to employers.

Q: What is the monthly cost to outsource payroll in Brazil?
A: If it’s just pay-roll management (calculations) $40 a person if it’s a fully managed solution including payments, reporting and payments of tax and social security contributions to the local authorities it is $100 a person.

Q: What is the estimated net retention for a contractor in Brazil earning USD 1000 per day?
A: Depends on a number of factors: how long the contractor will be in Brazil, if there’s local invoicing etc.

Q: What is the minimum salary required per month in Brazil when a candidate is sponsored on an Work Permit?
A: $4,000 USD

Client comment

"Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter."

Prishen Pillay,Global DBA Operations Lead

Shell International Trading & Shipping