Where do these numbers come from?
- OECDTaxing Wages 2025, comparative indicators (2024 and 2025 data)published 2025
- PwCWorldwide Tax Summaries, 69 non-OECD countrieseach page’s review date
- World BankWDI exchange rates (PA.NUS.FCRF) and PPP (PA.NUS.PPP)2025
- Deel and RemotePublic EOR and contractor list priceschecked Oct 23, 2026
Checked Oct 23, 2026. OECD Taxing Wages 2025 puts Germany’s 2025 average wage at €66,700 with employer social security at 20.86% of gross. €66,700 + 20.86% (€13,917) = €80,617, the total this calculator shows. Our automated tests repeat this comparison against OECD’s published net pay at 100% and 167% of the average wage for all 38 OECD countries.
- Instant answersResults update as you type.
- Private by designRuns in your browser. Nothing is sent.
- Share, print or citeCopy a link with your numbers.
Partial: some charges not included, see notes
Mandatory employer contributions in Brazil
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| INSS employer social security | 20.0% | none stated |
| FGTS severance fund | 8.0% | none stated |
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 59,900 BRL | 16,772 BRL | 28.0% | 76,672 BRL | $13,723 |
| 120,000 BRL | 33,600 BRL | 28.0% | 153,600 BRL | $27,491 |
| 239,000 BRL | 66,920 BRL | 28.0% | 305,920 BRL | $54,753 |
The examples use 1×, 2× and 4× Brazil’s 2025 GDP per person in local currency (59,858 BRL, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 120,000 BRL a year, the employer adds about 33,600 BRL (28.0%) in mandatory contributions, for a total of 153,600 BRL, about $27,491 at the 2025 average exchange rate. The rate is roughly flat across salaries (28.0% to 28.0%), so on-costs scale with pay.
What is not included
- FGTS 8% is set by Law 8,036/1990 (PwC lists FGTS as an employer cost without the rate). Work-accident insurance (RAT, 1–3%) and third-party contributions (SENAI, SESC, SESI and similar) also apply and vary by activity; they are NOT included, so the real cost is several points higher. Some sectors pay 22.5% INSS or pay on revenue instead (CPRB).
- Brazil also requires a 13th salary and a one-third vacation bonus, which you can add as benefits.
How to budget a hire in Brazil
- Start from the gross salary you plan to offer in BRL.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in Brazil (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.
Compare Brazil with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: Brazil, other taxes, last reviewed 23 September 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in Brazil?
On a salary of 120,000 BRL, mandatory employer contributions add about 28.0%, for a total of roughly 153,600 BRL a year before benefits (PwC, reviewed 23 September 2026).
What are employer social security contributions in Brazil?
INSS employer social security 20.0%, FGTS severance fund 8.0%.
Is the Brazil data verified?
Partly. The rates shown are cited, but some employer charges are not included; they are listed under "What is not included".