Hiring employees in Brazil: what CLT payroll really costs
Gross salary is roughly two-thirds of the story. Here is how Brazilian employment law builds the rest of your cost per hire — before you make an offer.
The CLT contract is the default
Most Brazilian employees are hired under the CLT (Consolidação das Leis do Trabalho), a statutory employment regime that fixes working hours, notice periods, termination rights and a set of mandatory benefits. Contractor arrangements exist, but misclassifying an employee as a contractor is one of the most common — and most expensive — mistakes foreign employers make in Brazil.
What sits on top of gross salary
13th salary — an extra month of pay every year, usually paid in two instalments. It adds roughly 8.3% to annual payroll.
Vacation plus one-third premium — 30 days of paid vacation per year, plus a constitutional bonus of one-third of the monthly salary.
FGTS — a severance fund deposit of 8% of monthly pay into an account in the employee's name, with an additional penalty on termination without cause.
Employer social contributions (INSS and related) — payroll charges assessed on the company, typically in the region of 20% plus sector-specific levies such as work-accident insurance and third-party contributions.
Customary benefits — transport and meal allowances, and in most white-collar markets private health insurance, which is expected rather than optional.
So what does a R$10,000 salary cost?
Once the 13th salary, vacation premium, FGTS, employer contributions and standard benefits are added, the all-in employer cost of a R$10,000 monthly salary commonly lands in the region of R$16,000–R$18,000 per month, depending on sector, union agreement (convenção coletiva) and benefit package. Union agreements matter: they can set minimum salaries, mandatory benefits and annual adjustments for your job categories.
Payroll is a filing obligation, not just a payment
Every hire, change and termination is reported through eSocial, and payroll taxes are settled on a monthly calendar. Late or inconsistent filings generate fines and, over time, labour-court exposure.
Model the cost before you make the offer
We build the all-in cost per hire for each role you plan to fill — including the union agreement that applies to it — and then run the monthly payroll and eSocial filings for you. That way the budget you approve is the budget you actually pay.