Employer cost calculator for a CLT employee in Brazil

1. Salary and monthly provisions

Besides the month's salary, a Brazilian employer has to set aside part of the entitlements paid later:

• 13º salário (13th salary, a mandatory year-end bonus): salary ÷ 12 (Lei 4.090/1962).
• Vacation + 1/3 (paid vacation carries a one-third bonus): salary ÷ 12 × 4/3, which equals 1/9 of the salary.

Salary plus provisions form the charge base: the simulator applies employer INSS, RAT, third-party levies and FGTS to the provisions too, because those charges are due when the 13th salary and vacation are paid.

2. Charges by tax regime

• Simples Nacional (simplified small-business regime) — Annexes I, II, III or V: the employer social-security contribution (CPP) is already inside the company's monthly DAS tax payment (LC 123/2006, art. 13, §3). Only FGTS at 8% is added — FGTS is the employee's severance fund, deposited by the employer.
• Simples Nacional — Annex IV: the company pays employer INSS at 20% and RAT separately, plus FGTS. The simulator adds no third-party levies here.
• Lucro Presumido or Lucro Real (the standard corporate tax regimes): employer INSS 20% + RAT × FAP + third-party levies + FGTS 8% (Lei 8.212/1991, art. 22, I and II; Lei 8.036/1990).

RAT is work-accident insurance at 1%, 2% or 3% depending on the risk level of the activity, multiplied by the company's own FAP factor; the field takes the final product, from 0.5% to 6%. Third-party levies (terceiros) fund the Sistema S training bodies, the education allowance and other entities; the rate depends on the company's FPAS code. The default 5.8% is typical, not universal.

3. FGTS fine provision

If ticked, the simulator sets aside 40% × the month's FGTS each month, anticipating the fine due on a dismissal without cause. Untick it if you do not want to provision that risk.

4. Benefits

• Transport voucher (vale-transporte): the employee may have up to 6% of salary deducted and the employer pays the rest, so the cost is voucher value − 6% of salary, never below zero.
• Meal/food voucher and health plan and others are added at the monthly value you enter, with no employee deduction.

Result and limits

The monthly cost is the sum of all items; the annual cost is monthly × 12. The cost ÷ salary factor helps compare offers. The simulator ignores payroll-tax relief schemes, overtime, premiums, pay rises, turnover and charges on benefits, and does not replace an accountant who knows the company's exact classification. All figures are estimates. To send the scenario to a partner or accountant, use Copy simulation link.

The example is a company under Lucro Presumido or Real hiring at R$3,000.00. Provisions are R$250.00 for the 13th salary and R$333.33 for vacation + 1/3, giving a charge base of R$3,583.33. On that base come employer INSS of R$716.67 (20%), RAT of R$71.67 (2%), third-party levies of R$207.83 (5.8%) and FGTS of R$286.67 (8%), plus a fine provision of R$114.67. The R$220.00 transport voucher costs the employer only R$40.00, because R$180.00 (6% of salary) is deducted from the employee; the meal voucher adds R$600.00. Charges and provisions reach R$1,980.84 and the total monthly cost is R$5,620.84 — about 1.87 times the salary, or R$67,450.08 a year.