Payroll SaaS

Payroll Software in Brazil

Aligned with Brazilian Payroll Regulations

Our Payroll Platform in Brazil Supports You With

eSocial Reporting
Generate Standard, Statutory and Year-End Reports

Custom API Integrations
Statutory Filings

Dive deeper into Brazil

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Written by Global Payroll Team

Published on October 1, 2026

Last updated October 1, 2026

Expert Reviewed

Payroll Software in Brazil

Mercans Payroll Software is a trusted solution for efficient, compliant, and streamlined payroll management in Brazil. Designed to address the practical needs of Brazilian payroll, our software helps employers manage payroll processing, eSocial reporting, the 13th salary, and FGTS obligations with confidence.

Mercans Payroll Software is an all-in-one native SaaS solution for complete digitalization of your payroll process. Supporting businesses across more than 160 countries, it is designed for organizations of all sizes, from single entities to global conglomerates. Its scalable architecture and seamless integration across modules enhance the user experience with an intuitive interface that is both simple and effective.

Trusted the world over

Aligned with Brazilian Payroll Regulations

Receita Federal do Brasil (RFB), INSS & eSocial

Our payroll software for Brazil is designed in alignment with Brazilian statutory payroll reporting requirements and employer obligations involving authorities such as the Receita Federal do Brasil (RFB), the Instituto Nacional do Seguro Social (INSS), and the Ministério do Trabalho e Emprego (MTE). Built to support Brazil’s fully digital eSocial system, the platform helps businesses navigate payroll events, DCTFWeb declarations, and FGTS deposits with confidence, reducing compliance risk and supporting accurate 13th salary payments, constitutional vacation bonuses, and withholding tax (IRRF) remittances.

Why Choose Mercans

Native SaaS and payroll platform
Trusted by Fortune Global 500 companies and multinationals
Manage all employment types – employees, freelancers, contractors, expats
More than 100 inbound and outbound integrations are available today
Suitable for enterprise businesses
GDPR aligned, SOC 1 & SOC 2 compliant
Supports multiple currencies
ISO 20000 & ISO 27001 Certified
Global presence and multi-country payroll capabilities
OWASP ASVS aligned

Payroll Software Modules

Mercans Payroll Software offers managers and employees a powerful and intuitive online portal designed to streamline and enhance your HR and payroll activities.

Our advanced software modules are equipped with functionality to support efficiency, compliance, and a superior user experience. Learn about them here:

Manager Self Service

Empowers managers to handle HR tasks, including approvals, performance tracking, and employee management, directly from the platform.

Employee Self Service

Provides employees with direct access to their personal information, payroll details, and other HR resources, enhancing transparency and convenience.

Employee Help Desk

Offers a centralized support system for employees to address payroll and HR-related queries, ensuring quick resolution and improved satisfaction.

Data Exchange

Facilitates seamless integration with other systems and platforms through robust data exchange capabilities, streamlining data management and reducing errors.

eDrive and Workflows

Automates and streamlines HR processes with configurable workflows and document management, improving efficiency and compliance.

Time & Attendance

Tracks employee work hours, attendance, and productivity with precision, integrating seamlessly with payroll calculations.

Leave Management

Manages various types of employee leave, including vacation, sick leave, and other absences, with automated approval workflows and accurate tracking.

Loans & Expenses

Handles employee loans and expense claims, ensuring accurate processing and integration with payroll for seamless financial management.

Features of Payroll Software in Brazil

Employment Contracts & Collective Labour Agreements

Our payroll software supports Brazil’s employment framework under the Consolidação das Leis do Trabalho (CLT), including the sector- and category-level collective bargaining agreements (convenções coletivas de trabalho/CCTs and acordos coletivos de trabalho/ACTs) negotiated by trade unions (sindicatos) that cover the vast majority of Brazilian employees. It can be configured for category- and sector-specific pay scales, allowances, and tailored employment terms, helping employers manage payroll in line with the applicable union agreement for each role.

TED/PIX Salary Payments

Mercans Payroll Software for Brazil supports processing salary payments in Brazilian Real (BRL) into employees’ local bank accounts, helping employers pay employees accurately and by the statutory deadline – no later than the fifth business day of the month following the month worked – in line with Brazilian payroll practice.

You have two options:

Option1

Send generated salary payment details from Mercans Payroll Software to Mercans Gateway. The Financial Gateway will then handle the dispatch of TED/PIX payments to Brazilian banks, supporting locally compliant BRL processing.

Option2

Prepare and process salary and statutory contribution payments directly through your bank from within Mercans, without the need to download a separate payment file.

Mercans facilitates both options to accommodate your payment processing needs efficiently.

Payroll Reporting

Mercans Payroll Software supports accurate and timely payroll data submission for Brazilian employer reporting obligations. It supports payslip (holerite) generation, retroactive adjustments, special pay runs, and electronic reporting workflows through Brazil’s unified eSocial system, which has absorbed what were formerly separate filings such as RAIS, CAGED and DIRF, together with monthly FGTS deposits and DCTFWeb declarations to the Receita Federal do Brasil and the Instituto Nacional do Seguro Social (INSS).

Earnings and Deductions Calculation

Earnings: Global Payroll for Brazil allows you to define and manage various types of earnings. This includes base salary components, union/collective agreement allowances, the 13th salary, the constitutional vacation bonus, and applicable premiums and overtime.
Deductions: The software also supports the definition and processing of different types of deductions. Regular deductions can include withholding income tax (IRRF) and employee INSS social security contributions, while incidental deductions include salary advances, loans, and garnishments.

Taxes

Tax Calculation for Regular and Non-Regular Payments

Brazil applies a progressive federal withholding income tax (IRRF) scale to regular payments, such as base salary and allowances, while the 13th salary is calculated and taxed separately as an exclusive, isolated payment using the same progressive table.

Personal Income Tax Thresholds and Rates

Brazil’s federal income tax brackets are reviewed periodically by the Receita Federal. As a general guide, taxable income is taxed progressively at 7.5%, 15%, 22.5% and 27.5% as it rises through the relevant thresholds, with a tax-free band for lower incomes. Reform proposals advancing through Brazil’s Congress since 2024 aim to raise the effective monthly exemption threshold and introduce a complementary minimum tax on very high incomes; Mercans confirms the exact current-year thresholds and rules for each engagement.

Social Security Contribution Rates

Brazilian social security contributions are calculated on gross salary: employees contribute progressively at 7.5%, 9%, 12% or 14% depending on the salary bracket, while employers under the general regime contribute approximately 20% of payroll (CPP), plus a variable occupational risk charge (RAT, typically 1-3%, adjusted by the FAP factor) and third-party/Sistema S contributions of approximately 5.8%. Certain sectors that have historically benefited from the payroll tax relief program (desoneração da folha) are being transitioned back to the standard payroll-based contribution under recent legislative reform.

13th Salary & Constitutional Vacation Bonus

Employees in Brazil are entitled to a 13th salary, equivalent to one month’s pay, split into two instalments – the first by 30 November and the second, net of INSS and IRRF withholding, by 20 December. On top of 30 calendar days of paid annual leave, employees also receive a constitutional vacation bonus (terço constitucional) equal to one-third of the vacation pay, paid in advance of the leave period.

Tax & Social Security Reporting Deadlines

Employers must deposit the 8% FGTS contribution into each employee’s individual account by the 7th of the month following the month worked, and remit INSS and withholding tax obligations declared via DCTFWeb, generally by the 20th of the following month. The first 13th salary instalment is due by 30 November and the second by 20 December. Annual income and withholding tax information is now reported through eSocial rather than the discontinued DIRF filing.

Termination Notice & Indemnity

Statutory prior notice (aviso prévio) for employer-initiated termination of an indefinite contract is a minimum of 30 days, increasing by 3 additional days for each complete year of service with the same employer, up to a maximum of 90 days. On dismissal without cause, the employer must also pay a 40% fine on the total FGTS balance accumulated during the employment relationship, in addition to any outstanding salary, 13th salary and vacation entitlements, formalised through the eSocial termination event (TRCT).

Mercans payroll software for Brazil efficiently manages and processes social security and FGTS obligations. This encompasses

eSocial Employer Registration

Registration of the employer’s CNPJ and filing of the mandatory eSocial admission event (S-2200) before the employee’s first working day in Brazil.

Contribution Calculation

Calculation of the progressive 7.5%-14% employee INSS contribution and the employer’s general-regime contribution of approximately 20% of payroll, plus RAT and third-party charges.

FGTS Fund Coordination

Coordination of the 8% monthly FGTS deposit into each employee’s individual account, administered through Caixa Econômica Federal and the FGTS Digital platform.

DCTFWeb & eSocial Reporting

Generation of DCTFWeb declarations from eSocial payroll events to support accurate and timely INSS and withholding tax payments.

Reporting

Integration of social security and FGTS obligations into Brazil’s unified eSocial digital bookkeeping system, which has replaced RAIS, CAGED and DIRF.

Mercans payroll software for Brazil provides comprehensive tools for managing various types of employee absences

Annual Leave

Administration of the statutory 30 calendar days of paid annual leave following each 12-month acquisitive period, together with the one-third constitutional vacation bonus paid alongside it.

Public Holidays

Tracking of national public holidays together with applicable state and municipal holidays observed each year.

Sick Leave

Tracking of employer-paid salary continuation for the first 15 days of incapacity, with INSS-funded sickness benefit (auxílio-doença) applying from the 16th day, subject to INSS medical assessment.

Maternity & Paternity Leave

Management of the statutory 120-day maternity leave entitlement (extendable to 180 days under the Empresa Cidadã programme) and the statutory 5-day paternity leave (extendable to 20 days under the same programme).

Collective Vacation (Férias Coletivas)

Administration of any collective vacation periods declared by the employer under CLT rules, during which all or part of the workforce takes leave simultaneously.

Overtime Pay Calculation

Our system calculates overtime at a minimum of 150% of the normal hourly rate on regular working days, commonly rising to 200% for work performed on Sundays or public holidays, in line with Brazilian labour requirements and applicable collective agreements.

Bank Integration

Global Payroll for Brazil integrates with Brazilian banking workflows to support secure and efficient payroll processing by automating TED/PIX BRL payment data and minimizing errors.

Payment Files

The software generates and stores the necessary payment files for Brazilian banks, covering BRL salary payments, INSS and FGTS contributions, and other deductions and benefits.

Statutory Allowances

Support for the calculation and payment of common statutory and collectively agreed allowances, including vale-transporte (transport voucher) and meal/food voucher benefits set by the applicable union agreement.

Reporting

Generation of the eSocial and DCTFWeb payment and reporting files required for Receita Federal do Brasil and INSS submissions.

Payroll Workflows

Streamlines payroll processes with automated workflows tailored to the needs of Brazilian businesses, enhancing efficiency and accuracy.

Social Security & FGTS

Mercans payroll software for Brazil efficiently manages and processes social security and FGTS obligations. This encompasses

eSocial Employer Registration

Registration of the employer’s CNPJ and filing of the mandatory eSocial admission event (S-2200) before the employee’s first working day in Brazil.

Contribution Calculation

Calculation of the progressive 7.5%-14% employee INSS contribution and the employer’s general-regime contribution of approximately 20% of payroll, plus RAT and third-party charges.

FGTS Fund Coordination

Coordination of the 8% monthly FGTS deposit into each employee’s individual account, administered through Caixa Econômica Federal and the FGTS Digital platform.

DCTFWeb & eSocial Reporting

Generation of DCTFWeb declarations from eSocial payroll events to support accurate and timely INSS and withholding tax payments.

Reporting

Integration of social security and FGTS obligations into Brazil’s unified eSocial digital bookkeeping system, which has replaced RAIS, CAGED and DIRF.

Absence Management

Mercans payroll software for Brazil provides comprehensive tools for managing various types of employee absences

Annual Leave

Administration of the statutory 30 calendar days of paid annual leave following each 12-month acquisitive period, together with the one-third constitutional vacation bonus paid alongside it.

Public Holidays

Tracking of national public holidays together with applicable state and municipal holidays observed each year.

Sick Leave

Tracking of employer-paid salary continuation for the first 15 days of incapacity, with INSS-funded sickness benefit (auxílio-doença) applying from the 16th day, subject to INSS medical assessment.

Maternity & Paternity Leave

Collective Vacation (Férias Coletivas)

Administration of any collective vacation periods declared by the employer under CLT rules, during which all or part of the workforce takes leave simultaneously.

Overtime, Bank and Payment

Overtime Pay Calculation

Bank Integration

Global Payroll for Brazil integrates with Brazilian banking workflows to support secure and efficient payroll processing by automating TED/PIX BRL payment data and minimizing errors.

Payment Files

The software generates and stores the necessary payment files for Brazilian banks, covering BRL salary payments, INSS and FGTS contributions, and other deductions and benefits.

Statutory Allowances

Reporting

Generation of the eSocial and DCTFWeb payment and reporting files required for Receita Federal do Brasil and INSS submissions.

Payroll Workflows

Streamlines payroll processes with automated workflows tailored to the needs of Brazilian businesses, enhancing efficiency and accuracy.

Payroll Implementation

Mercans’ standard payroll implementation process for Brazil is designed to ensure a smooth transition to our payroll system. This process is customized to meet the specific needs of each client, with timelines and deliverables varying based on complexity, data availability, and the number of parallel runs required. Below is an overview of the key steps involved in our implementation process.

Implementation Planning

Assign resources and define roles for the project. Conduct a kick-off meeting to outline objectives and confirm scope. Develop a detailed implementation calendar and plan. Provide a welcome package with project details and contacts. Schedule weekly update calls or emails to monitor progress. Obtain sign-off on the project scope.

Requirements Gathering

Hold workshops to understand client needs and document them. Complete business blueprinting to detail requirements and perform a gap analysis. Define and document any customization needs, including the applicable union category and collective bargaining agreement (CCT/ACT). Obtain sign-off on requirements to ensure they meet client expectations. Establish a comprehensive list of payroll-specific requirements.

System Configuration

Set up configurations tailored to Brazilian payroll requirements. Customize the wage type catalog for relevant pay components, including the 13th salary and constitutional vacation bonus. Configure data dictionaries and necessary interfaces for eSocial data integration. Adapt reports to meet Brazilian regulatory standards. Set up Employee Self-Service (ESS) and Manager Self-Service (MSS) features.

Data Migration

Migrate employee and payroll master data and confirm its accuracy. Obtain sign-off on the migrated data to ensure correctness. Verify data integrity and completeness before proceeding with further steps.

Test Payroll Run

Run simulation payrolls to validate system configurations and perform parallel runs with existing systems. Complete test run sign-offs to confirm accuracy and execute end-to-end testing. Conduct user acceptance testing (UAT) and address any issues found.

Payroll Management Transition & Sign-off

Develop a transition plan for moving to live payroll and provide training for users. Implement a hypercare plan for post-go-live support and an escalation plan for critical issues. Create a fallback plan for potential disruptions and complete a go-live checklist for final sign-off.

Payroll Integration

Mercans Global stands out with its extensive reach and robust integration capabilities. Operating across more than 160 countries, Mercans supports connections with payroll, tax, HR, finance, banking, and compliance ecosystems to help employers maintain efficient payroll operations in Brazil.

Recognised Trust Sources

Receita Federal do Brasil (RFB), INSS & eSocial

Mercans’ integration capabilities are designed to support Brazilian payroll reporting processes and secure data exchange with connected systems, reflecting our commitment to global standards and best practices.

Integration with HCM/ HRMS/ Workforce management platforms

Mercans’ Payroll Software integrates seamlessly with most HCM and payroll software, creating a unified experience between HR administration and payroll processing. Through the Employee Self Service (ESS) feature, employees can directly handle their payroll tasks, such as submitting worked hours or declarations. Once approved, these entries are processed within the payroll system. This efficient integration reduces errors and enhances productivity for both employees and HR administrators.

Custom API Integrations

Mercans provides custom API integrations across diverse industries, including hospitality, catering, theme parks, transport, sports, construction, healthcare, events, promotional sectors, greenhouse horticulture, and fresh produce.

Xero Integration

Integrate Mercans payroll with Xero to sync data, automate HR tasks, and streamline processes. Save time, reduce errors, and focus more on growing your business.

Payroll Reports – Standard, Statutory and Year-End Reports

Mercans’ payroll software is equipped to generate a comprehensive range of reports to support both standard and statutory requirements. These reports provide transparency, accuracy, and ease of integration with financial and regulatory systems.

Mercans Standard Reports

Report	Description
Gross to Net Report	Details employee earnings, taxable wages, employee deductions, employer costs and net pay for each payroll run in Brazil.
Payslip (Holerite)	Generates individual payslips showing gross pay, allowances, deductions, INSS and IRRF withholding, and net pay.
Payroll Register	Provides the employee payroll register used to support Brazilian payroll administration and social security calculations.
eSocial Payroll Event Report (S-1200)	Produces the payroll reporting data required for Brazil’s unified eSocial system, which has replaced RAIS, CAGED and DIRF.
Annual Payroll Summary	Generates the annual payroll summary for each employee, summarizing total compensation, statutory deductions and other year-end totals.
Bank Payment File (BRL)	Creates a TED/PIX-compatible BRL salary payment file according to client or bank specifications for payroll disbursement.

Statutory Standard Reports

Report	Frequency	Description
FGTS Deposit (FGTS Digital)	Monthly (by the 7th of the following month)	Statutory deposit of the 8% FGTS contribution into each employee’s individual account, administered through Caixa Econômica Federal.
DCTFWeb / INSS & Withholding Tax Payment	Monthly (generally by the 20th of the following month)	Statutory declaration and payment of INSS social security contributions and withholding income tax (IRRF), generated from eSocial payroll events.
Annual Income & Withholding Tax Reporting (eSocial)	Annually	Statutory annual reporting of each employee’s income, benefits and withholding tax through eSocial, which has replaced the discontinued DIRF filing.

Year-End Reports

Report	Frequency	Description
Annual Payroll Summary	Annually	Annual employee statement summarizing total compensation, statutory deductions and other required year-end payroll totals.

These detailed reports are designed to support statutory and regulatory requirements, helping ensure efficient payroll management and accurate compliance.

Benefits of Payroll Software

Mercans offers a powerful payroll solution that optimizes payroll administration and HR processes. Here’s how our software benefits your organization:

Streamlined Payroll Processing
Additional Key Features

No External Dependency

Manage payroll directly through our application, eliminating the need for third-party processors.

Integrated HR and Leave Management

Handle payroll, HR tasks, and employee leave requests within one platform, simplifying administrative duties.

Reduced Manual Work

Automate routine tasks to minimize errors and ensure accurate payroll processing.

Customization

Personalize workflows to meet your specific business needs, enhancing efficiency.

Time Savings

Redirect time saved from automation to more strategic activities.

Seamless Integrations

Connect effortlessly with systems and leading HR platforms like SAP Success Factors, Workday, and Oracle for a unified workflow.

Centralized Data Management

Consolidate employee data in one place for easy access, updates, and analysis.

Employee Access

Empower employees with 24/7 access to their personal files.

Mercans’ payroll software provides a comprehensive, secure, and user-friendly solution, streamlining payroll processes and allowing you to focus on your most valuable asset, your people.

24/7 Access

Access payroll data anytime and from any location.

Transparent Pricing

Benefit from a fixed monthly fee plus a per-employee charge with no hidden costs.

Dedicated Support

Get expert assistance and advice to maximize the software’s benefits.

Secure Data Management

Support data protection and integrity with secure online processing and controlled backup practices.

Compliance Assurance

Stay compliant with current fiscal and employment regulations through maintained payroll rules and updates.

Mercans’ payroll software provides a comprehensive, secure, and user-friendly solution, streamlining payroll processes and allowing you to focus on your most valuable asset, your people.

Streamlined Payroll Processing

No External Dependency

Manage payroll directly through our application, eliminating the need for third-party processors.

Integrated HR and Leave Management

Handle payroll, HR tasks, and employee leave requests within one platform, simplifying administrative duties.

Reduced Manual Work

Automate routine tasks to minimize errors and ensure accurate payroll processing.

Customization

Personalize workflows to meet your specific business needs, enhancing efficiency.

Time Savings

Redirect time saved from automation to more strategic activities.

Seamless Integrations

Connect effortlessly with systems and leading HR platforms like SAP Success Factors, Workday, and Oracle for a unified workflow.

Centralized Data Management

Consolidate employee data in one place for easy access, updates, and analysis.

Employee Access

Empower employees with 24/7 access to their personal files.

Additional Key Features

24/7 Access

Access payroll data anytime and from any location.

Transparent Pricing

Benefit from a fixed monthly fee plus a per-employee charge with no hidden costs.

Dedicated Support

Get expert assistance and advice to maximize the software’s benefits.

Secure Data Management

Support data protection and integrity with secure online processing and controlled backup practices.

Compliance Assurance

Stay compliant with current fiscal and employment regulations through maintained payroll rules and updates.

This content was prepared for informational purposes only. As local laws & regulations keep on changing, please consult your tax & legal advisors.

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FAQs

What payroll functions should a SaaS platform support in Brazil (e.g., gross-to-net salary calculation, payslip/holerite generation, INSS and IRRF withholding, and FGTS deposits)?

Mercans payroll software for Brazil delivers end-to-end payroll processing including automated gross-to-net salary calculation, digital payslip (holerite) generation, monthly INSS and IRRF withholding, and the monthly 8% FGTS deposit to each employee’s individual account held with Caixa Econômica Federal.

How do payroll SaaS solutions ensure compliance with Brazilian authorities (Receita Federal, INSS, Ministerio do Trabalho e Emprego) and statutory reporting obligations?

Mercans supports compliance by keeping pace with Brazil’s fully digital eSocial system, which has absorbed what were formerly separate filings such as RAIS, CAGED and DIRF, and by generating accurate DCTFWeb declarations and payments to the Receita Federal do Brasil and the INSS.

What employer registration and employee data are required (e.g. CNPJ enrollment, eSocial admission event, CPF and PIS/NIS numbers) and how does payroll software assist with this?

Mercans automates onboarding by securely capturing and managing employer and employee data, including CNPJ enrollment, the mandatory eSocial admission event (S-2200) filed before the employee’s first day of work, and each worker’s CPF and Numero de Identificacao Social (NIS).

How does payroll software handle specific Brazilian components like the 13th salary, the constitutional vacation bonus, and FGTS?

Mercans payroll software automatically calculates Brazil’s mandatory 13th salary across its two annual instalments, the one-third constitutional bonus payable alongside annual vacation, and the 8% monthly FGTS contribution, including the 40% termination fine where applicable.

Can payroll SaaS integrate with Brazilian HR and ERP systems and support outsourcing or Employer of Record models?

Mercans offers robust integration capabilities with leading HR and ERP systems, supporting seamless payroll, HR management, and outsourcing models including Employer of Record, for full compliance and efficiency in Brazil.