Payroll Services in Brazil

Tailored payroll solutions for tech companies

GEOR provides end-to-end, fully compliant payroll management for IT companies in Brazil—easy setup and monitoring, all in one place.

Fast-track onboarding
Get IT professionals onboarded within 7 days.
Fully-compliant payroll
Automated tax calculations and employer contributions.
Optimized for federal and municipal rules
Seamless payroll execution across Brazil’s key tech hubs.
Data security and IP protection
Secure infrastructure for handling payroll and safeguarding intellectual property.
Competitive benefits plans
Customizable health insurance and 13th salary management.
Built to scale with your team
From a small dev unit to a full tech department—our payroll solution grows with you.

Brazil

Latin America’s largest IT market.

Home to innovative startups and R&D centers.

Comprehensive labor protections in the tech sector.

GDP

$2.05 trillion

Language

Portuguese

Currency

R$ (BRL)

Software developer’s salary range

R$17k/year – R$251k/year

Payroll levy in tech:

Federal income tax (IRPF)

Progressive rates ranging from 7.5% to 27.5%, deducted at the source.

Fiscal reporting

eSocial: electronic system for remuneration reporting.
DIRF: annual declaration for financial withholding.
GFIP: social security and FGTS reporting.

Social Security contributions (INSS)

Employee: 7.5% to 14%, deducted from salary.
Employer: 20% on gross income.
Unemployment fund (FGTS): 8% employer contribution to severance fund.
Social Security and Social Integration Contributions (PIS/COFINS): combined 3.65% to 9.25%, depending on regime.

IT labor regulations snapshot:

Wage

Salaries for software developers vary significantly by region.

Overtime pay

Exceeding 44 hours/ week – 1.5x; work on holidays and Sundays – 2x.

Payroll cycle

Monthly (standard)
Biweekly (some cases)

Pay stub (Holerite)

Mandatory digital or printed.

Common employee benefits

Private health insurance plans (medical, dental, vision).
Mandatory social security.
Employer-sponsored pension funds (optional).
Paid vacation (30 days).
Paid maternity leave (120 or 180 days).
Paid paternity leave (5-20 days).
Meal vouchers, transport benefits, mental health support.

Do you have a specialist in mind to pay in Brazil?

Let us help you.

Payroll legislation
in Brazil

Here is an overview of Brazil’s regulatory framework governing workforce payments for IT companies. Employment classification and government-mandated obligations are strictly enforced, with strong worker protections and government oversight.

Worker classification in IT

Criteria for PJ Contractors

Remote workers

Equity compensation in Brazil

Pay stub (Holerite)

Salary regulations for IT staff

CLT and PJ employment models

Brazilian labor code (CLT – Consolidação das Leis do Trabalho) recognizes two primary employment models for tech professionals: regular employees and independent contractors (PJ – Pessoa Jurídica).

Employees

Definition

Traditional workers with full labor rights.

Salary and benefits

Fixed monthly wage with full benefits, including a 13th salary, paid vacation, FGTS, INSS, and health coverage.

Contributions

Employers contribute to INSS and FGTS, while income is taxed under IRPF.

Overtime

Required compensation for work exceeding 44 hours per week.

Common roles

Software developers, engineers, product managers, UX/UI designers.

Contractors

Definition

Independent professionals, often operating as sole proprietors (MEI, Simples Nacional, or Ltda.).

Salary and benefits

No mandatory benefits; earnings depend on contract terms.

Contributions

Contractors handle their own tax deductions under Simples Nacional, Lucro Presumido, or Lucro Real, with no employer-side social security contributions.

Overtime

Not applicable; payments are made per contract.

Common roles

Freelance developers, tech consultants, IT project contractors.

Criteria for PJ Contractors

To qualify as PJ contractors in Brazil, professionals must meet the following criteria:

Operate independently, without fixed schedules or direct supervision.

Perform project-based work rather than continuous employment.

Maintain a registered business entity (MEI, Simples Nacional, or Ltda.).

Issue invoices (Notas Fiscais) for services instead of receiving wages.

Work under a service contract rather than a traditional employment agreement.

Provide services to multiple clients rather than a single employer.

Remote workers

Brazil’s labor reform (Lei 13.467/2017) formally recognizes remote work, requiring companies to adhere to specific measures:

Expense reimbursement

Employers must cover costs related to the internet, electricity, and work equipment.

Time tracking

CLT employees working remotely must log hours, except those in leadership roles.

Overtime regulations

Remote workers are subject to the standard 44-hour workweek and overtime laws.

Workplace safety

Employers are responsible for ensuring ergonomic home office conditions and may be liable for work-related health issues.

Equity compensation in Brazil

Equity-based compensation is uncommon in Brazil and follows a distinct regulatory framework separate from wages:

Stock Options (Opções de Compra de Ações)

Considered capital gains, not salary.

Restricted Stock Units (RSUs)

Taxed at vesting as regular income under IRPF.

Employee Share Purchase Plans (ESPPs)

Subject to both employer and employee contributions under INSS and FGTS.

Pay stub (Holerite)

In Brazil, a pay stub is referred to as holerite or contracheque. Employers are legally required to provide electronic or physical holerites for CLT employees under Decreto nº 5.452/1943 (CLT).

A holerite must include gross and net salary, tax deductions, and benefits. It’s mandatory that the document remains accessible for remote workers. However, PJ contractors do not receive holerites.

Salary regulations for IT staff

13th salary (Décimo Terceiro salário)

Mandatory extra salary paid in two installments (in November and December). It is equivalent to 1 extra month of compensation per year.

Work hours

44-hour workweek (8h/day, Mon-Fri + 4h Sat) unless otherwise specified.

Night shift (Adicional noturno)

Work between 10 PM – 5 AM requires 20% extra fee.

Vacation (Férias remuneradas)

Workers are entitled for 30 days of paid vacation per year after 12 months of work. Employers must pay 1/3 extra salary when a team member takes vacation.

Severance (FGTS – Fundo de Garantia do Tempo de Serviço)

If the company terminates employment, the employee can withdraw FGTS + 40% penalty paid by the employer.

Paid leave and absences

Sick leave

The first 15 days are paid by the employer, then INSS covers longer sick leaves.

Maternity leave

120 days (paid by INSS); extended to 180 days for some companies.

Paternity leave

5 days (can be extended to 20 days in some cases).

Meal and transportation benefits

Vale refeição (VR) / Vale alimentação (VA)

Meal/food card paid by the employer.

Vale transporte (VT)

Employers must subsidize transportation costs for personnel.

Challenges of managing payroll in Brazil

In Brazil, workforce compensation for remote and distributed teams poses significant challenges for software companies, often resulting in legal risks and higher operational costs.

High employer contribution burden

Employer contributions can reach 70% of salary, including INSS, FGTS, and PIS/COFINS.

Complex multi-tiered fiscal system

Remuneration must comply with federal and municipal taxes such as ICMS, ISS, IRRF, and INSS.

Onerous financial reporting

Strict eSocial filings, pay stubs (holerites), and declarations create administrative complexity.

Classification risks for IT professionals

Misclassifying PJ contractors or employees can result in legal disputes and financial penalties.

IP protection challenges in financial operations

Startups risk ownership disputes over proprietary code without secure payroll structures and contracts.

Remote and hybrid workforce regulations

Dev teams across different regions trigger varying local statutory policies, complicating compliance.

Payments and deductions made simple

Here’s why GEOR is the best payroll partner for IT companies in Brazil.

Worker registration and labor law adherence

We ensure proper onboarding and contract structuring for CLT employees and PJ contractors, aligning with Brazilian labor laws to prevent misclassification risks.

Payroll management

GEOR manages automated compensation processing and eSocial reporting, while ensuring compliance with INSS, FGTS, IRRF, and municipal levy.

Financial deductions

We ensure proper payroll mandatory withholdings for companies without legal entities or operating under Simples Nacional, Lucro Presumido, and Lucro Real, aligning obligations with federal and municipal fiscal laws.

Benefits administration

GEOR provides custom benefits packages, including private health insurance, meal vouchers (VR/VA), transportation assistance, and FGTS contributions to attract top local IT talent.

Data security

Our LGPD-compliant systems ensure secure payment data handling, protecting staff information from legal and cybersecurity risks.

Tailored for big wins

Over the past 15 years, GEOR has helped 100+ clients build and manage distributed teams globally.

96%

reduction in hiring time.

40%

savings in HR and operational costs.

faster Brazilian market entry.

92%

employee retention rate.

Scalable pricing package

GEOR offers a turnkey payroll system with no minimum commitment, ensuring seamless operations for IT companies expanding into or scaling within Brazil.

Basic

Onboarding within 1 week
Payroll processing and tax deductions

$499

per employee/ month.
A starter’s package.
No hidden fees or extra charges.

Launch IT payroll
in Brazil

Optimize your software engineering team’s earnings with GEOR’s expert-driven solutions, ensuring efficiency, full compliance, and operational ease.

Client Feedback

Victor Fei

Founder & CEO

Ormi Labs, Inc.

We’ve been truly impressed with the quality of candidates they offer. Thanks to them we were able to secure deals with top blockchain providers and decentralized finance projects.

Alexis Bogan

Manager

Calicraft

With a mission to make the world a kinder place, Calicraft relies on GEOR’s temporary workforce solutions to streamline their human resources operations and foster a supportive work environment.

Greg Tearne

Chief Executive Officer

Altapac Group

They go above and beyond with their service delivery. My initial expectations have not only been met but exceeded to a level I didn’t think possible.

Manu Prakash

Managing Director | Head Debt & Capital Markets

CredAble

Recruitment Redefined’s biggest strength was the quality of the service they provide. The team followed through with their commitments and created a fantastic experience for candidates.

Larry Williamson

Owner

EcoGreen Solutions Inc.

GEOR’s team of experts seamlessly integrated into our operations, taking responsibility for temporary labor staffing, including recruitment, training, and compliance.

Allen Wright

Senior Vice President

HealthTrust Performance Group

Fantastic, constant communication and exchange of information, high efficiency in the execution of tasks, speed in action great cooperation and mutual understanding. I really like the quality of the candidates they were able to bring.

Competitor comparison

How GEOR outperforms other payroll companies in Brazil.

Feature	GEOR	Safeguard Global	Multiplier	Lano
Compliance focus	Expert-led, IT‑specific.	Relying on local expertise	Automated, with limited local adaptation	General wage processing
Payroll flexibility	Fully customizable for IT companies	Standardized solutions with limited flexibility	Multi‑country compensations, but with rigid structures	Less adaptable, focuses on general solutions.
Industry expertise	Tech sector focus	Broad industry coverage, less specialized	Multi‑industry but lacks deep tech expertise	General compensation services, not tailored to IT
Support	Dedicated HR and payroll specialists	Full-service HR support	Limited human‑led support, automation‑first	Standardized customer service, no dedicated HR

Future-ready tech wage solutions

Get a reliable payroll partner in Brazil. Stay ahead of evolving regulatory requirements while building a high-performing team. Ensure accurate, compliant talent compensation tailored to Brazil’s labor laws. Provide competitive benefits that attract and retain top local professionals.Gain stability and foresight with GEOR’s services.

GEOR

Streamline Brazilian payroll with GEOR

We simplify paychecks, you scale.

FAQs

What makes GEOR’s payroll services in Brazil different from automated platforms?

Unlike automated payroll providers, GEOR combines advanced technology with dedicated HR and legal experts, ensuring adherence to Brazilian labor laws, fiscal and benefits regulations.

How does GEOR manage payroll for companies without a legal entity in Brazil?

We act as your payroll provider, handling payments, statutory withholdings, and benefits administration. You can send paychecks to the workforce in Brazil without the need to set up a local presence.

What financial obligations do you manage for tech companies with a workforce in Brazil?

We handle INSS (social security), FGTS (severance fund), IRRF (income tax withholding), and PIS/COFINS, ensuring full adherence to federal and municipal fiscal regulations.

Can GEOR process payments for both CLT employees and PJ contractors?

Yes, we manage talent compensation for both CLT employees with full benefits and deductions, as well as PJ contractors, ensuring proper classification.

How does GEOR help with global payroll in a complex Brazilian regulatory system?

We ensure seamless workforce payments under Simples Nacional, Lucro Presumido, and Lucro Real, aligning with local labor frameworks. Our expertise simplifies hiring structures, mandatory contributions, and operational processes, enabling companies to integrate Brazil into their global payroll strategy effortlessly.

Can you support compensation for remote and hybrid tech teams in Brazil?

Yes, we manage payouts for distributed teams across Brazil, handling federal social contributions, and benefits per regulatory requirements.

How does GEOR manage employee benefits for Brazilian workers?

We administer benefits, such as private health insurance, meal and transport vouchers (VR/VA), FGTS contributions, and retirement plans tailored for Brazil’s IT workforce.

Can I outsource IT staff and reimburse them through GEOR’s payroll system in Brazil?

Yes, we enable seamless compensations for outsourced IT professionals, ensuring fast onboarding and compliant earnings while managing legal and fiscal obligations.

Do I need an internal HR department to run payroll in Brazil with GEOR?

No, GEOR provides a full talent management outsourcing solution, handling salaries and taxes without the need for an in-house HR department.

How do you ensure payment data security in Brazil?

We comply with LGPD (Lei Geral de Proteção de Dados), ensuring secure financial operations and wage data handling with encryption, strict access controls, and adherence to international security standards.

Looking for more employment models?

We deliver end-to-end employee and contractor management services, covering various hiring requirements in Brazil.

Beyond payroll: EOR in Brazil

Worry-free expansion with Employer of Record solutions. GEOR handles hiring and workforce compensation so you can grow your software team in Brazil effortlessly.

Tailored payroll solutions for tech companies

Payroll legislation in Brazil

13th salary (Décimo Terceiro salário)

Work hours

Night shift (Adicional noturno)

Vacation (Férias remuneradas)

Severance (FGTS – Fundo de Garantia do Tempo de Serviço)

Challenges of managing payroll in Brazil

High employer contribution burden

Complex multi-tiered fiscal system

Onerous financial reporting

Classification risks for IT professionals

IP protection challenges in financial operations

Remote and hybrid workforce regulations

Payments and deductions made simple

Tailored for big wins

Launch IT payroll in Brazil

Client Feedback

Competitor comparison

Future-ready tech wage solutions

Streamline Brazilian payroll with GEOR

FAQs

Looking for more employment models?

Payroll legislation
in Brazil

Launch IT payroll
in Brazil