# Brazilian labor law glossary

What each word of Brazilian labor law means, explained in plain English.

## 1

- **13º salário**. An extra month of salary each year, paid in two installments. The first comes by November 30 and the second by December 20. If you worked only part of the year, you get 1/12 for each month worked. (Law 4.090/1962)

## A

- **abono pecuniário**. Selling one third of your férias days to the employer, which means 10 days when you have 30. You work those days and get paid for them on top of the férias pay. The choice is yours, not the employer's. (CLT, Consolidação das Leis do Trabalho, Brazil's labor code, art. 143)

- **aviso prévio**. The notice one side gives the other before ending the contract. It is 30 days, plus 3 days for each full year at the company, up to 90 days when the employer dismisses you. (CLT, art. 487, and Law 12.506/2011)

- **aviso prévio indenizado**. When the employer dismisses you and does not ask you to work the notice days. It pays those days in cash with the severance, and that time counts for the 13º and the férias. (CLT, art. 487, § 1º)

- **aviso prévio trabalhado**. When you work the notice days until you leave. If the employer dismissed you, you can work 2 hours less a day or take the last 7 days off, with no pay cut. (CLT, art. 488)

## C

- **carteira assinada**. Formal employment, with the contract recorded in the carteira de trabalho, which is digital today. It gives you FGTS (Fundo de Garantia do Tempo de Serviço, a severance savings fund), férias, 13º, INSS (Instituto Nacional do Seguro Social, Brazil's social security) and seguro-desemprego. (CLT, arts. 13 and 29)

- **contracheque**. The monthly pay slip. It shows the gross salary, each deduction, such as INSS and income tax, and the net amount paid into your account. (CLT, art. 464)

## D

- **dependente**. A person who depends on you to live, such as a child or a spouse with no income, and whom you declare for income tax. Each dependent lowers the monthly tax a little. (Law 9.250/1995, art. 4º, III)

## E

- **encargos trabalhistas**. The costs the employer pays on top of your salary, such as the employer INSS, the FGTS, the férias and the 13º.

## F

- **férias**. Thirty days of paid rest after every 12 months of work. The employer pays the salary for those days plus one third extra, up to 2 days before they start. (CLT, arts. 129 to 145)

- **férias proporcionais**. Férias from the period that has not reached 12 months yet. On severance you get 1/12 for each month worked, with the extra third. You only lose them with justa causa. (CLT, art. 146, sole paragraph, and art. 147)

- **férias vencidas**. Férias from a 12-month period that already ended and that you have not taken yet. If you leave the company, they are paid in full, with the extra third. (CLT, art. 146)

## J

- **justa causa**. Dismissal for serious misconduct by the worker, such as theft, abandoning the job or assault. Whoever leaves with justa causa loses the aviso prévio, the prorated férias and 13º, the FGTS fine and the seguro-desemprego. (CLT, art. 482)

## L

- **Lucro Presumido**. A tax regime in which the company pays tax on a profit the law presumes, not on its real profit. (Law 9.249/1995, art. 15)

## M

- **multa do FGTS**. When the employer dismisses you without justa causa, it pays into your FGTS account 40% of everything it deposited during the contract. When both sides agree to end the job, the fine is 20%. (Law 8.036/1990, art. 18)

## P

- **pedido de demissão**. When you decide to leave the job. You get the salary balance, the férias and the 13º, but not the FGTS fine or the seguro-desemprego, and you cannot withdraw the FGTS. (CLT, art. 487)

- **pró-labore**. The monthly pay business owners give themselves for working in their own company. It pays INSS, like a salary. (Law 8.212/1991, art. 12, V, f)

## S

- **salário bruto**. The salary written in the contract, before deductions.

- **salário de contribuição**. The amount your INSS contribution is calculated on, usually your gross salary, up to the INSS ceiling. (Law 8.212/1991, art. 28)

- **salário líquido**. What lands in your account. It is the gross salary minus the INSS and income tax deductions, and any others you have, such as vale-transporte.

- **saque-aniversário**. An FGTS option. You withdraw part of the balance every year, in your birthday month. In exchange, if you are dismissed, you cannot withdraw the balance, only the 40% fine. (Law 8.036/1990, art. 20-D)

- **saque-rescisão**. The standard FGTS mode. If you are dismissed without justa causa, you withdraw the whole balance of the account, plus the fine. (Law 8.036/1990, art. 20)

- **seguro-desemprego**. Unemployment pay from the government for people dismissed without justa causa. It comes in 3 to 5 installments, depending on how long you worked. The amount depends on the average of your last salaries. (Law 7.998/1990)

- **Simples Nacional**. A simpler tax regime for small companies. It changes what the employer pays on your salary, but not your own deductions. (Complementary Law 123/2006)

## T

- **terço de férias**. The extra amount added to the férias pay, equal to one third of it. It is a right in the Constitution, so the employer cannot leave it out. (Constitution, art. 7º, XVII)

- **teto do INSS**. The highest amount the INSS is charged on. Whoever earns more than the ceiling pays the contribution only up to it. (Law 8.212/1991, art. 28, § 5º)

## V

- **verbas rescisórias**. Everything the employer pays you when the contract ends. For example, the salary balance, the aviso prévio, the férias, the prorated 13º and the FGTS fine. The deadline to pay is 10 days. (CLT, art. 477, § 6º)