New contribution rates announced for social security in Brazil for private employees
Effective from March 01, 2020, there will be a change in employee social security contribution rate for private-sector employees, as follows:
|
Previous rates |
Effective rates from March 01, 2020 |
||
|
Monthly Salary (In BRL) |
Rate |
Monthly Salary (In BRL) |
Rate |
|
Up to BRL 1,751.81 |
8% |
Up to National monthly minimum wage i.e. BRL 998.00* |
7.5% |
|
From BRL 1,751.82 to BRL 2,919.72 |
9% |
From national monthly minimum wage i.e. BRL 998.01 to BRL 2,000.00 |
9% |
|
From BRL 2,919.73 to BRL 5,839.45 |
11% |
From BRL 2,000.01 to BRL 3,000.00 |
12% |
|
From BRL 3,000.01 to BRL 5,839.45 |
14% |
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*7.5% for a monthly payment of up to the national monthly minimum wage, which for the year 2019 is BRL 998 and which is to increase for 2020.
Implication
Employers are required to make necessary changes in their payroll to comply with new employee social security rates.
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