Payroll
/
Brazil
Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
BRL R$
Employer contributions
~28% (INSS 20%, RAT and third-party levies) + 8% FGTS
Minimum wage
BRL 1,621/month (2026) ≈ $312/month
Payment frequency
Monthly
Calendar
Capital
Brasília
Timezone
BRT (GMT-3)
Short answer: The minimum wage in Brazil in 2026 is BRL 1,621 a month (about $312). A typical full-time salary is around BRL 3,500 a month ($673). Professionals paid as contractors through Ontop earn a median of $2,030 a month (418 active contracts, September 2026).
| 2026 figure | Local currency | USD |
|---|---|---|
| Minimum wage, monthly | BRL 1,621 | $312 |
| Minimum wage, hourly | BRL 7.37 | $1.42 |
| Average salary, monthly (approx.) | BRL 3,500 | $673 |
| Median contractor pay through Ontop, monthly | n/a | $2,030 |
Minimum wage details: National floor per Decreto 12.797/2025; some states (SP, PR, RS, SC, RJ) have higher regional floors. USD figures use exchange rates from 1 October 2026. Updated October 2026.
Next step: compare contractor rates in Brazil with other countries or estimate the full cost of an employee.
Brazil is the country where the gap between salary and cost is widest in the region. A CLT employee comes with a payroll tax bill, a mandatory extra month of pay, a monthly deposit into a severance fund and a fine on that fund if you let the person go. None of it is optional, and all of it requires a local entity to run.
That is why so many companies hiring in Brazil for the first time, especially for remote and project-based roles, start with contractors instead. It is a legitimate structure in Brazil, as long as the relationship is genuinely independent.
On a gross salary of R$5,000 a month, employer contributions to INSS and FGTS add about R$1,400, for a monthly cost of roughly R$6,400. That is before the rest of the CLT package:
All in, total employment cost typically lands 40% to 70% above gross salary.
In Brazil, independent professionals usually invoice as a Pessoa Jurídica (PJ). Ontop acts as your contractor of record: you sign a compliant contract (yours or an Ontop template), get classification support, and pay the contractor into their Ontop Global Account in USD. No Brazilian entity, no payroll provider, from $49 per contractor per month.
Companies paying contractors in Brazil through Ontop pay a median of $2,030 a month (the middle half earn between $1,200 and $3,913), across 418 active contracts in September 2026. That is Ontop's own book, not a market survey. To price a specific role, use the contractor cost calculator by country.
Brazilian labor courts look at how the work actually happens, not at what the contract says. If the person works fixed hours, reports to a manager who directs their day, and works only for you, that is employment, and a PJ contract will not protect you. In that case, hire an employee through a local entity. If the role is truly independent, see why companies choose a contractor model instead of an employer of record.
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~R$6,800 BRL
/month
For a gross salary of
R$5,000 BRL
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~28% (INSS 20%, RAT and third-party levies) + 8% FGTS
Mandatory extras
13º Salário
Monthly admin
Week 1-3: Gather -> Week 4: Calc -> Day 5 (next month): Pay
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~R$6,800 BRL
Example gross salary
R$5,000 BRL
~R$4,490 BRL
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~R$1,800 BRL (INSS, levies and FGTS)
Employer contributions on that salary
Employer contributions
~28% (INSS 20%, RAT and third-party levies) + 8% FGTS
Employee contributions
7.5-14% (INSS, progressive)
Total cost above gross
~40% to ~70%
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~R$3,500 BRL
Per month
São Paulo
R$4,500 - R$6,000 BRL
~25
Rio de Janeiro
R$4,000 - R$5,500 BRL
~15
Monthly gross. National average salary per year:
~R$42,000 BRL
Minimum wage
BRL 1,621/month (2026) ≈ $312/month
Paid:
Monthly
Extra pay
13º Salário
1 month salary
Paid in two installments (Nov/Dec)
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0 - 27.5
Tax year:
Calendar
Filing calendar
20th of each month
Social security payments
April 30th
Income tax
End of February
Employee tax certificate
Informe de Rendimentos
April 30th
Annual return
Declaração de Ajuste Anual
Late payment penalties
Selic rate interest + fines up to 20%
Who collects what
Receita Federal
Tax collection
INSS
Social Security
Ministério do Trabalho
Labor inspections
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Férias
30 calendar days
Public holidays
12 days
Sick leave
Auxílio-doença
100% by employer first 15 days; then INSS
Maternity leave
120 days
100% via INSS
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contrato por Prazo Indeterminado (CLT)
Fixed term
Contrato por Prazo Determinado
Independent contractor
Pessoa Jurídica (PJ)
Collective agreements
Convenção Coletiva de Trabalho
Ending employment
Aviso Prévio / Multa FGTS
How it is calculated
40% fine on FGTS balance + notice
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
PJ (Pessoa Jurídica) Misclassification Risk
Risk Level: HIGH
Hiring workers as PJ contractors (Pessoa Jurídica) to avoid CLT obligations is the leading compliance trigger in Brazil. If the Receita Federal or Ministério do Trabalho determines the relationship shows "personalidade" (personal service), subordination, and habitual work, the contract is reclassified as CLT employment. This triggers retroactive 13º Salário, FGTS (40% penalty fund), INSS contributions, and férias.
FGTS Calculation Errors and Late Deposits
Risk Level: HIGH
FGTS (Fundo de Garantia do Tempo de Serviço) must be deposited monthly at 8% of gross salary by the 7th business day of the following month via eSocial. A frequent error is failing to include non-habitual bonuses that are paid repeatedly in the FGTS base, or missing the deadline. Late deposits trigger Selic-rate interest plus a 2% fine, and underpayment accumulates as a direct liability owed to the worker upon termination.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
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$49
per contractor per month
1 run
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USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.