PEO Services in Brazil

A co-employment model for companies that want to share the employer relationship in Brazil rather than hand it over entirely. Worth knowing up front: true PEO co-employment is far less established in Brazil than in the US, so we will tell you honestly whether PEO or an EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in Brazil

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your Brazilian staff: you keep direction and day-to-day control, while the partner administers payroll, income tax, INSS, and the FGTS deposit under a shared arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, income tax, INSS, and the FGTS deposit.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In Brazil, true co-employment is uncommon, so EOR is usually the better fit.

03

We tell you if PEO fits your needs

For most businesses hiring in Brazil, EOR is simpler. We will work with you and advise if the PEO model fits your structure or if EOR would suit you better.

How PEO works in Brazil, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and advise honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted Brazilian partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant Brazilian employment terms under the CLT, with the administrative employer functions handled by the partner.

04 — Payroll & compliance

Income tax, INSS, the FGTS deposit, and statutory filings handled monthly, while you keep day-to-day direction.

What PEO in Brazil costs

As with EOR, two parts: the statutory cost of employment (INSS, work-accident insurance, Sistema S, and the separate FGTS deposit) and the partner service fee.

Employer INSS & FGTS

Roughly 28% to 34% of gross salary in INSS-related contributions, plus the separate mandatory 8% FGTS deposit, all administered under the shared employer arrangement.

Minimum wage (2026)

R$1,621 per month for 2026, one national floor, though some states set their own higher minimum.

Income tax (employee)

Progressive from 7.5% to 27.5%, with an effective exemption up to R$5,000 a month under Lei 15.270/2025, withheld at source as part of the shared payroll administration.

PEO partner fee

A service fee for the co-employment administration. Under a shared employer arrangement, Brazil’s INSS, work-accident, Sistema S, and FGTS obligations still have to be administered correctly by someone. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange Brazilian PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Brazil’s employer cost splits across INSS, work-accident and Sistema S contributions, and a separate mandatory FGTS deposit, and a shared employer arrangement adds a second party who has to get that split right. We benchmark across our vetted network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of placements

Two decades placing and managing employment arrangements across global markets, with the local knowledge that prevents costly Brazilian compliance mistakes.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own Brazilian Ltda., as your Brazilian presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

The employer duties a Brazilian PEO shoulders

Whichever model you use, the underlying Brazilian rules are the same. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

Compliant CLT contracts and working-time rules (44-hour standard week, 8-hour daily cap extendable with overtime, minimum 30 days’ annual leave after one year). Income tax, INSS, and the FGTS deposit withheld and filed correctly. Statutory benefits, the 13th salary, notice, and severance applied properly.

Statutory protections & exits

Statutory notice, probation, and the protections Brazilian employees carry under the CLT, including the 40% FGTS termination penalty on unjustified dismissal, all handled under the shared arrangement. The value is the same as with EOR: the compliance is handled by people who do it daily. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

A CLT-compliant employment contract, issued and maintained for you.

Payroll & filings

Monthly payroll run, with income tax, INSS, and the FGTS deposit calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: annual leave, 13th salary, sick pay, parental leave, notice and severance.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how PEO co-employment works in Brazil.

What is the difference between PEO and EOR in Brazil?

With an EOR, the partner is the sole legal employer of your Brazilian staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In Brazil, true co-employment is uncommon, so EOR is the usual route; PEO suits specific structures.

For most companies, EOR is simpler and faster, especially with no Brazilian entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We assess your situation and advise honestly.

It depends on the structure. Some co-employment arrangements assume or work alongside your own Brazilian entity. If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions, payroll, income tax, INSS, the FGTS deposit, and statutory filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and Brazilian law is met.

The statutory employer cost (roughly 28% to 34% of gross salary in INSS-related contributions, plus a separate 8% FGTS deposit) plus a partner service fee for the co-employment administration. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own Brazilian Ltda., as your Brazilian presence develops.

Not sure whether PEO or EOR is right for Brazil?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

Tax and labour data verified July 2026 (Receita Federal, INSS/Ministerio da Previdencia, gov.br). Figures change; we confirm the current position when we scope your hire.