Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in Brazil if the relationship looks like employment. |
| Employee via EOR | $95,388 – $109,188 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
Brazil 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. Not legal advice.
Want to hire this person in Brazil?
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.