Hiring your first employee in Brazil is a milestone that comes with significant legal obligations. The CLT (Consolidação das Leis do Trabalho) governs virtually all employment relationships and mandates benefits, contributions, and protections that make the true cost of an employee substantially higher than their base salary.

Before You Hire: Prerequisites

Before registering an employee, your company must have:

• Active CNPJ with appropriate CNAE codes
• eSocial registration (employer events submitted)
• Digital certificate (required for eSocial and payroll filings)
• Municipal registration for ISS purposes
• Workplace safety program (PCMSO and PGR, even for office work)

MEI Limitation

MEIs can hire only one employee, and that employee’s salary cannot exceed the minimum wage or the professional floor for the category. Hiring a second employee requires migrating from MEI to ME (Microempresa).

Step-by-Step Hiring Process

Step 1: Pre-Admission Exam

Before the employee starts, they must undergo an ASO (Atestado de Saúde Ocupacional) — a medical exam confirming they are fit for the job. This is mandatory for all positions.

Step 2: Collect Documents

Required documents from the employee:

• CTPS (Carteira de Trabalho) — now digital (CTPS Digital)
• CPF and RG (identity document)
• Proof of address
• Social security number (PIS/PASEP)
• Military service certificate (men under 45)
• Voter registration
• Birth certificates of dependents (for tax deductions)

Step 3: Register in eSocial

Submit the S-2200 event (employee admission) in eSocial before the employee’s first day of work. This event includes all employment details: position, salary, work schedule, and contract type.

Step 4: Sign the Employment Contract

The contract must specify:

• Job title and description
• Work hours (standard is 44 hours/week)
• Salary and payment frequency
• Contract type (fixed-term or indefinite)
• Benefits provided

Step 5: Register in the CTPS Digital

The employment data submitted via eSocial automatically populates the employee’s digital work card. No manual annotation is needed.

The True Cost of an Employee

The base salary is only part of the total cost. Brazilian labor law mandates additional charges:

Cost component	Approximate percentage
Base salary	100%
INSS (employer contribution)	20%
FGTS (severance fund)	8%
13th salary (Christmas bonus)	8.33%
Paid vacation + 1/3 bonus	11.11%
RAT/SAT (workplace accident insurance)	1–3%
Sistema S (SESI, SENAI, etc.)	3.3%
Total employer cost	~151–155% of base salary

Example: An employee earning R$ 3,000/month costs the employer approximately R$ 4,530–4,650/month in total charges.

Additional Mandatory Benefits

Benefit	Details
Vale-transporte	Transportation voucher (employer covers cost exceeding 6% of salary)
Meal/food voucher	Not mandatory by law but required by many collective agreements
Health insurance	Required by some collective agreements

Monthly Payroll Obligations

Obligation	Deadline	Details
Salary payment	5th business day of following month	Direct deposit or other agreed method
FGTS deposit	7th of following month	Deposited into employee’s FGTS account
INSS contribution	20th of following month	Via DARF
eSocial periodic events	15th of following month	S-1200 (payroll) and S-1210 (payments)
IRRF (if applicable)	20th of following month	When salary exceeds exemption threshold

Employee Rights Under CLT

Right	Details
30 days paid vacation	After 12 months of work, plus 1/3 salary bonus
13th salary	Paid in two installments (November and December)
FGTS	8% of salary deposited monthly by employer
Overtime pay	Minimum 50% premium (100% on Sundays/holidays)
Maternity leave	120 days (180 with Empresa Cidadã program)
Paternity leave	5 days (20 with Empresa Cidadã program)
Prior notice	30 days minimum, plus 3 days per year of service

Termination Costs

Firing an employee without cause triggers significant costs:

• 40% FGTS penalty: 40% of total FGTS deposited during employment
• Prior notice: 30 days salary (or working notice period)
• Proportional 13th salary: For months worked in the current year
• Proportional vacation + 1/3: For the incomplete vacation period
• Unused vacation + 1/3: If any accumulated vacation exists

SedeFiscal and Hiring

Your company’s registered address at SedeFiscal is used in all employment documentation and eSocial filings. The address on the employee’s CTPS Digital and employment contract will match your CNPJ registration. SedeFiscal ensures all address documentation is current and consistent for labor compliance purposes.

Hiring your first employee is a commitment. Plan for total costs of approximately 50–55% above the base salary, and ensure your payroll and eSocial systems are set up before the employee’s first day.

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