Brazil employer cost calculator
Salary is not the cost of a hire in Brazil. This runs the mandatory charges on top of it, so the number you budget against is the number you actually pay.
How to use it
Enter the gross monthly salary, pick the RAT risk class and the FPAS code closest to your activity, and the tool runs the mandatory charges an employer pays on top of salary under the normal tax regime.
Worked example
Salary R$ 5,000, medium RAT risk (2%), FAP 1.00, third parties at 5.8% (FPAS 507, industry), with the FGTS termination fine provision:
| Line | Amount (BRL/month) |
|---|---|
| Gross salary | 5,000.00 |
| 13th salary provision | 416.67 |
| Vacation + 1/3 provision | 555.56 |
| INSS employer, 20% | 1,194.44 |
| RAT, 2% × FAP 1.00 | 119.44 |
| Third parties, 5.8% | 346.39 |
| FGTS, 8% | 477.78 |
| FGTS termination fine provision, 3.2% | 191.11 |
| Total monthly cost | 8,301.39 |
| Total yearly cost | 99,616.67 |
Without the fine provision, the monthly total is R$ 8,110.28. These figures are the calculator's own unit tests: a change to a rate or the formula that breaks either number fails the build before it reaches the site.
Methodology
The contribution base is gross salary plus a monthly provision for the 13th salary (one twelfth of salary, Lei 4.090/1962) and for vacation plus its constitutional one-third addition (four thirds of salary divided by twelve, under CF article 7 XVII and CLT articles 129-130). INSS employer runs at 20% of that base (Lei 8.212/1991 article 22 I). RAT runs at 1%, 2% or 3% of the base depending on risk class, multiplied by FAP, a company-specific factor from 0.50 to 2.00 (Lei 8.212/1991 article 22 II; Decreto 3.048/1999 article 202-A, inserted by Decreto 6.042/2007 and amended by Decreto 10.410/2020). Third-party contributions run at the rate set by your FPAS code. FGTS runs at 8% of the base (Lei 8.036/1990 article 15), and the optional termination fine provision at a further 8% × 40% = 3.2% (Lei 8.036/1990 article 18 §1).
What this does not include
Employee INSS and income tax withholding, which are deducted from the salary rather than added on top. Collective bargaining agreements (convenção coletiva) that add benefits or wage floors specific to a sector or region. Termination costs beyond the FGTS fine provision, including aviso prévio. Payroll tax relief (desoneração da folha / CPRB) for specific sectors under Lei 14.973/2024: whether your activity qualifies and the current transition schedule were not confirmed against the primary text while building this tool, so check with your accountant before assuming it applies. Transport voucher (vale-transporte) rules.
Sources
- National minimum wage, R$ 1,621.00 from 1 January 2026: Decreto 12.797/2025, confirmed on planalto.gov.br 24 September 2026.
- 13th salary provision: Lei 4.090/1962.
- Vacation and the constitutional one-third: Constituição Federal article 7 XVII; CLT articles 129-130.
- INSS employer and RAT: Lei 8.212/1991, article 22 I-II.
- FAP: Decreto 3.048/1999 article 202-A, inserted by Decreto 6.042/2007, amended by Decreto 10.410/2020; range 0.50-2.00 confirmed against secondary legal sources 24 September 2026 (not confirmed against the full decree text directly).
- FGTS and the termination fine: Lei 8.036/1990, articles 15 and 18 §1.
- Third-party contributions by FPAS: eSocial Tabela 04, read from a secondary reproduction (a software vendor's published table); the official eSocial layout page did not render for direct citation while building this tool. Confirm the current table before relying on the default shown.
- Simples Nacional exclusion for companies with foreign participation: LC 123/2006, article 3 §4 I-II, article 17 II.
Rates verified 23-24 September 2026. Contribution rates and the minimum wage change; check the date before relying on any figure here.
Frequently asked questions
Does this cover Simples Nacional?
No, by design. A company with a foreign partner cannot use Simples Nacional under LC 123/2006 article 3 §4 I-II and article 17 II, and every client this site is built for has foreign participation. This calculator runs the normal regime only, Lucro Presumido or Lucro Real.
What is the third-party contribution rate, and why do I have to pick it?
It is set by your FPAS code, which depends on your company's economic activity, under eSocial Tabela 04. Industry and commerce both commonly run at 5.8%; some service and communications activities run lower, around 4.5%. The calculator ships three common defaults, but your accountant sets the actual FPAS code for your specific CNAE. This table was read from a secondary reproduction, not the official eSocial layout page directly, so treat it as a starting point and confirm the code with your accountant.
What is FAP and why does it move the number?
The Fator Acidentário de Prevenção adjusts the RAT contribution up or down for your specific CNPJ, based on your company's accident record against others in the same activity, under Decreto 3.048/1999 article 202-A. It runs from 0.50 to 2.00, so the same risk class can cost noticeably more or less depending on your company's own history. If you do not know your FAP yet, 1.00 is the neutral starting point.
Does the total include the employee's own tax and INSS withholding?
No, deliberately. Employee INSS and income tax withholding come out of the salary the employee receives; they are not an extra cost to the employer, so including them here would double count against the gross salary already in the calculation.
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