# Hiring in Brazil

Review edition — pending Theo Smith approval.

## What does employment cost above salary?

For ordinary CLT employees, the employer’s FGTS deposit is 8% of the applicable remuneration base. It is not an employee deduction; apprenticeship arrangements have a different rate.

Applies to: Brazil ordinary CLT FGTS; this is only one employer-cost component

Still to establish: Remuneration base, apprenticeship, social security, risk levy, other contributions and exit fine

- Remuneration base, apprenticeship, social security, risk levy, other contributions and exit fine

Next step: Confirm Remuneration base, apprenticeship, social security, risk levy, other contributions and exit fine.

- [FGTS official portal](https://www.fgts.gov.br/Paginas/subpaginas/recolhimento-empregado.aspx)

Checked 2026-09-28. Research status: partial.

## How do we switch EORs or move to our own entity?

A change in company ownership or legal structure does not affect employment contracts. Where employer succession is established, the successor is responsible for employment obligations, including earlier obligations.

Applies to: Brazil CLT articles 448 and 448-A; actual employer succession must be established.

Still to establish: Succession facts, fraud liability, collective agreement, records and worker-specific balances

- Classify the transaction under current local transfer/succession law.
- Determine consent, consultation, service, leave and historic-liability treatment.
- Confirm permits, payroll handover, provider termination and deposit recovery from actual documents.
- Succession facts, fraud liability, collective agreement, records and worker-specific balances



- [www.planalto.gov.br](https://www.planalto.gov.br/ccivil_03/decreto-lei/del5452compilado.htm)

Checked 2026-09-28. Research status: partial.