Glossary
Payroll terms by country, in plain English
Plain definitions and worked numeric examples of the terms that show up every month on a payroll, country by country — from withholding to severance pay.
E
H
- hazard premium (periculosidade)A 30% premium on base salary owed to employees in dangerous activities listed in NR-16, such as flammables, explosives, electricity, security work and motorcycle riding.
- hazardous-conditions allowance (insalubridade)An allowance of 10%, 20% or 40% of the minimum wage owed to employees exposed to harmful agents above the limits of regulation NR-15.
- holerite (payslip)Brazil's monthly pay statement, detailing the employee's earnings, deductions and net salary.
- hour bank (banco de horas)A compensation system in which overtime becomes time off (and absences become debits), instead of immediate payment.
I
- INSSBrazil's social security contribution withheld from salaries, with progressive rates from 7.5% to 14%, funding pensions and benefits.
- INSS tableThe progressive table that sets how much a Brazilian employee contributes to social security each month: 7.5% to 14%, band by band, up to a cap.
- IRRFBrazil's income tax withheld at source: the company deducts it from the salary and remits it to the tax authority, at progressive rates of up to 27.5%.
- IRRF tableThe monthly table that sets income tax withheld from Brazilian salaries, with rates from 7.5% to 27.5% and a reduction that exempts anyone earning up to R$ 5,000 a month.
M
- maternity leave (licença-maternidade)Paid leave of 120 days for childbirth or adoption, funded by INSS as maternity pay, with job security for the mother until five months after the birth.
- minimum wageThe lowest pay a Brazilian employee can receive for a full-time month; in 2026 it is R$ 1,621.00 a month, R$ 54.03 a day and R$ 7.37 an hour.
N
P
- payroll (folha de pagamento)The monthly process (and document) that calculates the pay, deductions and charges of all of the company's employees.
- PJ contractingHiring a professional through their own company (pessoa jurídica), with invoices instead of a CLT employment relationship.
- PLR (profit sharing)Participation in profits or results: a bonus negotiated with employees, exempt from INSS and FGTS, taxed under its own table and paid at most twice a year.
- prior notice (aviso prévio)Advance notice that the employment contract will end: at least 30 days, plus 3 days per year of service, capped at 90.
- pró-laboreThe monthly compensation of a partner who works in the company — distinct from profit distributions, with its own INSS and IRRF.
- proportional vacationThe vacation fraction (1/12 per month worked) owed when the 12-month accrual period has not yet been completed.
Glossary by country
Payroll and HR terms in other countries where Avos operates.
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