🇧🇷 Hire in Brazil vs 🇦🇷 Argentina
Statutory employer on-costs are lower in Argentina; the full picture depends on salary level, termination exposure and how fast you need the person on payroll.
Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.
| Brazil | Argentina | |
|---|---|---|
| Employer on-costs | 47–70% | 34–40% |
| Total cost on a $60,000 salary | $88,200–$102,000 | $80,400–$84,000 |
| Mandatory benefits | 13th salary (paid in two instalments, by 30 Nov and 20 Dec); Vacation pay plus 1/3 constitutional bonus; FGTS deposits (8%); Vale-transporte (commuting allowance) for employees who commute; Maternity leave 120 days (180 if Empresa Cidada); paternity leave 5 days in 2026 (Law 15.371 of 31 Mar 2026 raises it to 10 days from 2027, 15 from 2028 and 20 from 2029 with a paid 'salario-paternidade', per secondary sources); Meal vouchers, health plans, etc. are usually required by collective bargaining agreements (CCT) rather than statute | Aguinaldo (SAC): two half-bonuses in June and December; Vacation: 14-35 days by tenure; Paid maternity 90 days; Occupational risk insurance (ART); Life insurance (not verified) |
| Probation | Experience contract (contrato de experiencia) up to 90 days total (one extension allowed within that cap). | Three months under the Labor Contract Law. Law 27.802 (published 6 Mar 2026) is reported to extend it to up to 6 months for most employers, 8 months for firms with 6-100 employees and 12 months for micro firms of up to 5 workers, with 15 days' notice and no severance (Deel; not checked against the law text). |
| Notice and severance | Dismissal without cause: notice (aviso previo) of 30 days plus 3 days per completed year of service beyond the first, capped at 90 days (Law 12.506/2011) (worked or paid in lieu); FGTS balance released plus 40% fine paid by employer; proportional 13th salary and vacation pay. Resignation: employee gives 30 days' notice. Mutual agreement termination: 20% FGTS fine and 80% FGTS withdrawal. | Notice (LCT art. 231): 15 days during probation, 1 month under 5 years' service, 2 months for 5+ years. Dismissal without cause: severance of one month's pay per year of service or fraction over three months (law text as quoted by Argentine legal summaries), based on the best normal and habitual monthly pay of the last year. Law 27.802 (in force since 6 Mar 2026) clarifies the base (excludes aguinaldo, vacation pay and non-habitual items; 'habitual' means accrued at least 6 months in the last year) and, per Deel, caps the base at three times the average collective-agreement wage. A court order suspended 82 articles on 30 Mar 2026 and was revoked on 23 Apr 2026, so recheck current status. |
| Paid leave | 30 calendar days of paid vacation after each 12-month accrual period (may be split into up to 3 periods), paid with an extra 1/3. About 9-12 national/state/municipal public holidays depending on location. | 14 days (under 5 years), 21 (5-10), 28 (10-20), 35 days (20+) (Remote). About 16 national holidays in 2026 (12 fixed, 4 movable) per press calendars, plus possible bridge days; official decree not fetched. |
| Contractor risk | High risk. Courts apply the CLT employment test (personal service, subordination, habitual service, pay). Misclassified 'PJ' contractors can claim retroactive INSS, FGTS, 13th salary, vacation and overtime, plus the 40% FGTS fine. The Supreme Court (STF) has been reviewing the legality of 'pejotizacao'; status of that ruling should be checked with local counsel. | Misclassification carries serious penalties and fines under Argentine labor law (Remote). Independent contractors (monotributistas/autonomos) must be genuinely autonomous; 2026 reform eased some contractor rules (details not verified). |
| EOR onboarding | 5-10 business days (Deel claim) | 3-5 business days to onboard, start in about 15 days (Deel claim) |
| Time zone | Brasilia time is UTC-3 year-round (DST abolished 2019); 1 hour ahead of US Eastern in winter, 2 in summer; Manaus/Acre zones are UTC-4/-5. | UTC-3 all year, no DST: 1-2 hours ahead of US Eastern. |
| Data confidence | medium | medium |
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FAQ
Is it cheaper to hire in Brazil or Argentina?
On statutory employer on-costs alone, Argentina is lower (34–40%). Salary levels, EOR fees and benefits also matter; use the cost calculator.