How to Hire Engineers in Brazil Using an Employer of Record (EOR)

In This Article

• Why US companies hire in Brazil
• What makes Brazil a leading nearshore engineering market
• How the Employer of Record model works
• Why US companies choose EOR hiring
• The Howdy hiring and vetting framework
• How to get started
• FAQ: Hiring engineers in Brazil
• Book a Demo with Howdy.com

For US CTOs and VPs of Engineering, the question is no longer if you should hire in Latin America — it’s where and how fast. Brazil consistently ranks among the most mature, English-proficient, and legally stable tech ecosystems in LatAm. Yet many US companies hesitate because of perceived payroll, tax, or compliance barriers.

This overview summarizes Employer of Record (EOR) helps US companies hire and pay engineers in Brazil under CLT labor law. It outlines payroll compliance, onboarding, and key advantages for nearshore engineering.

What makes Brazil a leading nearshore market for engineers

Brazil has the largest engineering workforce in Latin America. More than a million professionals specialize in software, AI, and data engineering, and many already collaborate with US companies.

Howdy hiring data show strong hiring growth and retention in Brazil. Engineers typically earn an average salary of about $53,000 per year, with a total cost to employers of around $61,000 once benefits are included. In the US, comparable roles often exceed $100,000.

Brazil offers a skilled, English-speaking workforce that works similar hours to the US. The result is faster hiring, smoother collaboration, and measurable cost efficiency for scaling teams.

How the Employer of Record model works in Brazil

An Employer of Record acts as the legal employer on behalf of a foreign company. For Brazil, this arrangement streamlines compliance with complex federal and state labor codes. Here’s how it works:

1. Entity and registration: The EOR legally employs engineers under Brazilian law. Your startup avoids forming a CNPJ (company ID).
2. Payroll and tax filing: The EOR handles INSS (social security), FGTS (severance), and IRRF (withholding tax).
3. Employment contracts: Bilingual contracts protect both Brazilian law and US intellectual property.
4. Benefits and insurance: EORs manage mandatory 13th-month salary, paid leave, and health coverage.
5. Compliance and termination: All notices and severance procedures follow CLT (labor law) rules, shielding US companies from penalties.

In practice, this means your Brazilian engineer is fully legal and benefited — while you control their day-to-day work like any full-time team member.

Why US companies choose EOR hiring for speed and compliance

Common pain points solved by an EOR:

• Entity setup delays: Hire in weeks, not months.
• Complex tax rules: Payroll and compliance handled by local experts.
• Legal risk: Fully compliant contracts under Brazilian law.
• High US salary costs: Average 40–50% savings per engineer.
• Talent competition: Access vetted mid-senior engineers ready to deploy.

Howdy hiring data show that Brazil remains one of the most consistent markets for both placements and long-term retention across Howdy clients, supported by efficient onboarding and transparent compliance processes.

The Howdy hiring and vetting framework

Every engineer engaged through Howdy passes a five-layer human vetting system that acts as a human firewall against fraud and low-quality hires:

1. Identity verification using government IDs and live video checks.
2. Technical assessment through live coding and real-world problem solving.
3. Soft-skills screening to ensure US-aligned communication.
4. Cultural fit interviews with Howdy’s talent success team.
5. Final compliance checks before activation via EOR.

This system protects you from deepfake applicants and ensures only engineers meeting Howdy’s standards join client projects.

How to get started

1. Define your roles: Frontend, backend, AI/ML — Brazil has specialists in each domain.
2. Choose your EOR partner: Howdy acts as the strategic bridge for US companies.
3. Onboard in days: Through Howdy’s nearshore framework, engineers are ready to deploy in under two weeks.
4. Monitor and scale: Howdy’s account team manages ongoing payroll, benefits, and compliance.

Conclusion

Hiring engineers in Brazil through an Employer of Record is one of the fastest, most compliant ways for US companies to expand nearshore teams. Howdy manages every step, from legal setup to payroll, through its established EOR framework.

FAQ: Hiring engineers in Brazil

Why do companies use an EOR in Brazil?
To avoid opening a local entity and to ensure full CLT compliance.

How long does onboarding take?
Most Howdy clients onboard engineers in under two weeks.

How much do engineers in Brazil cost?
Average salary: ~$53,000/year
Total employer cost: ~$61,000/year

Is English proficiency strong in Brazil?
Yes. Mid-senior engineers in tech hubs like São Paulo score high in English communication.

Does Howdy handle payroll and taxes?
Yes — Howdy manages INSS, FGTS, IRRF, and all CLT requirements as the EOR.

Book a demo with Howdy

Ready to hire senior engineers in Brazil with full compliance and faster onboarding?
Book a demo with Howdy to see how US companies scale engineering teams using our Brazil EOR model.