CLT vs PJ: compare a Brazilian employment contract with contracting through your own company
Enter the CLT salary and benefits on offer and the monthly revenue you would bill as a PJ. The calculator adds up what each option leaves you with over a year and finds the monthly revenue at which the PJ route matches the CLT package.
| CLT | PJ | |
|---|---|---|
| Gross received in the year | R$106,666.67 | R$144,000.00 |
| Taxes and INSS in the year | R$26,253.42 | R$13,075.20 |
| PJ costs in the year | R$0.00 | R$3,600.00 |
| Net in the year | R$80,413.25 | R$127,324.80 |
| FGTS + benefits in the year | R$8,533.33 | R$0.00 |
| Total in the year | R$88,946.58 | R$127,324.80 |
| Monthly equivalent (÷ 12) | R$7,412.22 | R$10,610.40 |
- Yearly difference (PJ − CLT)
- R$38,378.22
- Annex applied to the PJ
- Annex III
- Effective DAS rate
- 6.00%
- Pró-labore used
- R$3,360.00
- Profit distributed per month
- R$7,620.00
- A PJ has no paid vacation, 13th salary, FGTS or unemployment insurance; the CLT figures above include them.
Estimate only; it does not replace an accountant, an employment lawyer or the official calculation by the employer/Receita Federal.
Tables in force on 11/13/2026 — source: Employee INSS (progressive table) · Income tax withholding (IRRF) — monthly table · Monthly IRRF reduction (zero tax up to R$ 5,000) · FGTS: monthly deposit, dismissal fine and mutual agreement · Simples Nacional — Annexes I to V and Factor R · INSS on partner drawings (pró-labore) · Withholding tax on profits/dividends above R$ 50,000 a month · all tables and sources
How it is calculated
In Brazil, many professionals are offered two options: a formal job under the CLT (the labour code, with all employee rights) or a contract with their own company, known as PJ (pessoa jurídica, legal entity). Comparing monthly figures misleads, so the calculator works with a full year.
1. The CLT side
- 11 regular months: gross salary minus employee INSS (social security, 2026 progressive table, capped at R$8,475.55) and IRRF (monthly income tax withholding), including the Lei 15.270/2025 reduction (no tax up to R$5,000.00 of income, partial relief up to R$7,350.00).
- Vacation month: salary plus the constitutional one-third bonus, taxed as a single payment. In real payroll vacation pay is paid and taxed separately; this is a simplification.
- Net 13º salário (13th salary, a mandatory year-end bonus): a full 13th with INSS and income tax withheld exclusively at source; the Lei 15.270 reduction also applies to it (Lei 9.250/1995, art. 3º-A §3) and is computed on the gross 13th.
- FGTS (the employee severance fund): 8% on 13⅓ salaries (12 months, the 13th and the vacation third). It is deposited in a locked account, not paid in cash.
- Benefits: the monthly amount you enter (meal vouchers, health plan) × 12, at face value.
For a single month in detail, use the net salary calculator.
2. The PJ side: a one-person company in the Simples Nacional
- Automatic pró-labore (the partner's monthly drawing, treated as salary): with “Factor R” selected it is 28% of revenue, never below the minimum wage (R$1,621.00). Payroll (pró-labore × 12) over 12-month revenue then reaches 28%, so the service is taxed under Annex III instead of the more expensive Annex V. If you force Annex III or V, the automatic pró-labore is the minimum wage. You can also type your own figure.
- DAS (the single monthly Simples tax slip): effective rate = (12-month revenue × nominal rate − deduction) ÷ 12-month revenue, assuming constant monthly revenue. The first band is 6% in Annex III and 15.5% in Annex V. Details in the Simples Nacional calculator.
- Partner INSS: 11% of the pró-labore, withheld by the company (the 20% individual-contributor rate minus the 9% deduction in Lei 8.212, art. 30 §4), up to the INSS cap.
- IRRF on pró-labore: the same monthly table as employees, deducting INSS (or the R$607.20 simplified discount when larger), dependants, and the Lei 15.270 reduction.
- Distributed profit: revenue − DAS − pró-labore − costs. It is tax-free, except that 10% is withheld when one company pays the same individual more than R$50,000.00 of profits in a month (Lei 9.250/1995, art. 6º-A, added by Lei 15.270/2025). The calculator then deducts 10% of that month's profit.
- PJ costs: accountant, fees, digital certificate — whatever monthly amount you enter.
3. The headline: break-even revenue
The highlighted figure is the monthly PJ revenue whose yearly total equals the CLT total (net pay + FGTS + benefits). Below it the CLT job pays more; above it the PJ route wins in cash terms.
4. What is left out
A PJ has no paid vacation, 13th salary, FGTS, 40% dismissal fine or unemployment insurance — a month off is a month without revenue. Municipal ISS rules, Annex IV, the cost of opening a CNPJ (company registration; varies by city), uneven revenue and the annual tax return are not modelled. Results are estimates, not legal advice; your accountant and the employer's payroll give the official figures. Employers can compare with the employee cost calculator.
Worked example
The example compares a CLT offer of R$6,000.00 plus R$800.00 in benefits with billing R$10,000.00 a month as a PJ under Factor R, with R$300.00 of monthly costs. Under CLT the year brings R$80,000.00 gross (11 salaries, the vacation month with its third, and the 13th), R$14,278.81 of INSS and income tax, so R$65,721.19 net. FGTS (R$6,400.00) and benefits (R$9,600.00) add R$16,000.00, for a package of R$81,721.19, or R$6,810.10 a month. As a PJ, the automatic pró-labore is R$2,800.00 (28%), the company stays in Annex III with a 6% DAS (R$600.00), partner INSS is R$308.00, no income tax is due and R$6,300.00 is distributed as profit. That leaves R$8,792.00 a month, R$105,504.00 a year — R$23,782.81 more than CLT, before valuing paid leave and job protection. “Copy simulation link” lets you share the exact scenario.
- CLT gross salary
- R$6,000.00
- Dependants for income tax
- 0
- CLT benefits per month (meal vouchers, health plan)
- R$800.00
- Monthly revenue as a PJ
- R$10,000.00
- Company activity (Simples)
- Service subject to Factor R
- Monthly PJ costs (accountant, fees)
- R$300.00
| CLT | PJ | |
|---|---|---|
| Gross received in the year | R$80,000.00 | R$120,000.00 |
| Taxes and INSS in the year | R$14,278.81 | R$10,896.00 |
| PJ costs in the year | R$0.00 | R$3,600.00 |
| Net in the year | R$65,721.19 | R$105,504.00 |
| FGTS + benefits in the year | R$16,000.00 | R$0.00 |
| Total in the year | R$81,721.19 | R$105,504.00 |
| Monthly equivalent (÷ 12) | R$6,810.10 | R$8,792.00 |
- Yearly difference (PJ − CLT)
- R$23,782.81
- Annex applied to the PJ
- Annex III
- Effective DAS rate
- 6.00%
- Pró-labore used
- R$2,800.00
- Profit distributed per month
- R$6,300.00
- A PJ has no paid vacation, 13th salary, FGTS or unemployment insurance; the CLT figures above include them.
Frequently asked questions
How much should I bill as a PJ for it to be worth it?
At least the break-even revenue shown in the headline, which only equalises the money. Most people add a margin on top to cover what a PJ does not get: a month without revenue when taking holidays, no FGTS or unemployment insurance, and a contract that can end at short notice. How large that margin should be depends on your savings and how stable the client is.
Why is the automatic pró-labore 28% of revenue?
That is the Factor R threshold. When payroll over the last 12 months (here, the pró-labore) is at least 28% of revenue in the same period, services such as consulting or software development are taxed under Annex III, starting at 6%, rather than Annex V, starting at 15.5%. A higher pró-labore means more INSS, but the DAS saving usually outweighs it.
Are distributed profits taxed in 2026?
As a rule, no: profits and dividends remain tax-free for the individual. The exception introduced by Lei 15.270/2025 is a 10% withholding when the same company pays the same person more than R$50,000.00 of profits in a month. The calculator applies it whenever monthly profit exceeds that amount and treats profit below it as untaxed.
Should FGTS and benefits count in the comparison?
They are part of what the employer provides, so they are included, but they are not the same as salary. FGTS sits in a locked account that can only be withdrawn in situations defined by law, and meal vouchers can only be spent on food. The calculator shows them on a separate line, so you can also compare net pay alone.
Where does the 11% INSS on pró-labore come from?
The company deducts 11% from the partner's pró-labore, up to the INSS cap. It comes from Lei 8.212/1991: an individual contributor pays 20% but may deduct 45% of the company's contribution, capped at 9% (art. 30 §4); the company withholds and pays it (Lei 10.666/2003, art. 4). Drawing pró-labore from more than one company or paying extra contributions can change the amount.
Can a foreigner use this comparison?
Yes, as long as you would be taxed as a Brazilian resident and could open a company here, which normally requires a CPF (tax ID) and suitable residence status. Non-residents are taxed under different rules that the calculator does not cover. It also does not model a MEI (micro-entrepreneur), which has a fixed monthly fee and a much lower revenue limit.
Legal basis
- CLT (Decreto-Lei 5.452/1943) — employment contract and vacation
- Lei 8.036/1990 — FGTS
- LC 123/2006 — Simples Nacional, annexes and Factor R (Federal Senate)
- Lei 15.270/2025 — income tax reduction and withholding on profits above R$50,000 (Federal Senate)
- Lei 8.212/1991 — social security funding (partner contribution)
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Updated Nov 13, 2026 · by Juliana Costa