Payroll in Brazil
Get your Brazilian payroll's INSS, FGTS, and 13º salário obligations right from the first payslip, so a routine termination never triggers a miscalculated FGTS fine.
FGTS Employer Contribution
8% monthly
Tax ID
CNPJ
Primary Registry
INSS
Payroll in Brazil: What You Need to Know
INSS patronal runs at 20% of gross monthly payroll, uncapped on the employer side, plus RAT/FAP work-accident insurance running roughly 0.5% to 6% depending on CNAE activity and the company's accident history. Sistema S contributions of roughly 5.8% and FGTS deposits of 8% of gross monthly remuneration into an individual, employee-owned account bring direct monthly payroll contributions to roughly 34% to 37% of gross salary, a figure distinct from the commonly-cited 70-80% custo Brasil estimate that also bakes in 13th-salary accrual, vacation, and termination reserves. The 13º salário is paid in two installments, 50% by November 30 with no deductions and 50% by December 20 with INSS and IRRF withheld, prorated at 1/12 per month worked. Férias entitle employees to 30 days per year plus a mandatory 1/3 constitutional bonus on top of full vacation pay, with up to 1/3 of the period sellable as abono pecuniário. Unjustified dismissal triggers a 40% fine on the employee's total historical FGTS deposits, not just the current account balance, paid directly into the employee's FGTS account. eSocial requires new-hire registration at least 1 business day before the start date, termination reporting within 10 days, and DCTFWeb payment due by the 20th of the following month.
Key Requirements
INSS patronal at 20% of gross monthly payroll, uncapped on the employer side, plus RAT/FAP work-accident insurance running roughly 0.5% to 6% depending on CNAE activity and accident history
Sistema S contributions of roughly 5.8% and FGTS deposits of 8% of gross monthly remuneration into an individual, employee-owned account, bringing direct monthly payroll contributions to roughly 34% to 37% of gross salary
13º salário paid in two installments, 50% by November 30 with no deductions and 50% by December 20 with INSS and IRRF withheld, prorated at 1/12 per month worked
Férias, 30 days per year plus a mandatory 1/3 constitutional bonus on top of full vacation pay, with up to 1/3 of the period sellable as abono pecuniário
Unjustified dismissal triggering a 40% fine on the employee's total historical FGTS deposits, not just the current balance, paid directly into the employee's FGTS account
eSocial registration of new hires at least 1 business day before their start date, termination reporting within 10 days, and DCTFWeb payment due by the 20th of the following month
Common Challenges
Two different employer-burden numbers get conflated, and citing the wrong one misleads a budget
The roughly 34-37% figure is direct monthly payroll-tax contributions, INSS, RAT, Sistema S, and FGTS. The commonly-cited 70-80% custo Brasil figure is a fully-loaded cost estimate that also bakes in 13th-salary accrual, paid weekly rest, vacation plus 1/3, and termination reserves. They answer different questions.
FGTS is a running monthly cash cost, and the 40% fine reaches further back than the current balance
Employers budgeting severance as a lump year-end liability miss that FGTS deposits are already flowing out monthly at 8%, and that the 40% dismissal fine applies to the full historical deposit record, not just what's currently sitting in the account.
eSocial doesn't automatically apply the annual minimum-wage adjustment
Every January, payroll teams must manually update each affected employee's contract in eSocial before closing that month's payroll, or risk misreporting and the fines that come with it.
How NavviPal Helps
INSS, RAT/FAP, Sistema S, and FGTS registration and contribution calculation, budgeted against the correct roughly 34-37% direct payroll-tax figure rather than the broader custo Brasil estimate
13º salário and férias processing on their statutory installment deadlines and the mandatory 1/3 vacation bonus
FGTS deposit tracking and the 40% dismissal-fine reserve, calculated against the full historical deposit record for any unjustified termination
eSocial new-hire registration, termination reporting, and the annual January minimum-wage update, so nothing slips through a manual step
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