What is payroll (folha de pagamento)?
Payroll (folha de pagamento) is the monthly process of calculating the compensation of all of a company's employees — and also the document that consolidates that calculation. It starts from each person's contractual salary, adds the month's variables (overtime, premiums, commissions) and applies the legal deductions (INSS, IRRF) and the agreed ones (transport vouchers, health plan).
Beyond what the employee receives, payroll determines what the company must pay in: the 8% FGTS, the employer INSS contribution and other charges. It is the source of the payslips, the payment forms and the events sent to eSocial.
Running payroll is a legal obligation for every company with employees in Brazil, with chained deadlines: pay salaries by the 5th business day, deposit FGTS by the 20th and transmit the payroll to eSocial by the 15th of the following month. Errors create labor liabilities and fines — which is why the trend is to automate the calculation rather than maintain spreadsheets.
Hiring in Brazil from another country?
Avos runs Brazilian payroll (13th salary, FGTS, vacation bonus and taxes) alongside your other countries, with digital payslips for every employee.
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A company with 10 employees closes June's payroll: it adds salaries and overtime (R$ 38,000 gross), deducts each person's INSS and IRRF, issues 10 payslips, deposits R$ 3,040 of FGTS (8%) and transmits the events to eSocial by July 15th.
Run the numbers now, for free: Net salary calculator.
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