Brazil Employee Cost Calculator
See the true cost of employing someone in Brazil — gross salary plus an estimated 33.0% in employer social contributions.
Cost of an employee in Brazil
Employer contribution breakdown
| Contribution | Rate | Annual amount |
|---|---|---|
| INSS social security (employer) | 20.00% | — |
| FGTS severance fund | 8.00% | — |
| Work-accident insurance (RAT, typical) | 2.00% | — |
| Sistema S & other levies | 3.00% | — |
| Total employer contributions | 33.0% | — |
Employer costs in Brazil
In Brazil, employer charges are roughly 33% on top of gross salary — the 20% INSS social-security contribution, the 8% FGTS severance fund, work-accident insurance and the 'Sistema S' levies.
- INSS employer contribution is 20%; FGTS adds 8% deposited monthly to the worker's fund.
- Work-accident insurance (RAT) is 1–3% by risk class, and Sistema S and related levies add several more percent.
- Total employer contributions commonly fall in the 28%–37% range depending on sector and risk.
This is a mid-range estimate; the RAT rate and third-party (Sistema S) levies vary by sector. Brazil also pays a 13th-month salary, which raises annual cost. Use it for budgeting, not payroll.
Hire and pay in Brazil
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Frequently asked questions
On top of gross salary, an employer pays statutory social-security contributions — around 33.0% in Brazil. The total employer cost is the gross salary plus those employer contributions. It does not include optional benefits, equipment, or recruitment costs.
Employers must pay mandatory social-security and payroll charges on top of the gross salary the employee sees. These fund pensions, healthcare, unemployment, and similar schemes, and they are a real, recurring cost of employment.
In most countries several contributions are calculated only up to a maximum income base, so the effective employer rate is lower for high salaries. Treat this calculator as a budgeting estimate rather than exact payroll.
Many companies use an Employer of Record (EOR) to hire compliantly in Brazil without opening a local subsidiary. The EOR is the legal employer and handles payroll, contributions, and compliance for a monthly fee.