What is PLR (profit sharing)?
PLR is participation in the company's profits or results, governed by Law 10,101/2000. It is the only bonus that, if it follows the law, has no salary nature: it stays out of the INSS, FGTS, vacation and 13th-salary bases. For that, the rules must be negotiated with an employee committee assisted by the union or through a collective agreement, with clear, objective targets recorded in writing before the measurement period.
Payment is limited to two instalments a year, at least one quarter apart. Programmes that pay monthly or without verifiable targets lose the protection and are treated as salary, with all charges and knock-on effects.
Income tax is withheld at source, exclusively and definitively, under a dedicated annual table that is more favourable than the payroll one, with a higher exemption band. The amount is not added to the month's salary for IRRF purposes and is reported separately in eSocial and on the annual income statement.
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.
Start your free trialIn practice
A company agrees with its employee committee a PLR of up to one month's salary a year, tied to revenue and turnover targets, paid half in February and half in August. An analyst earning R$ 5,000.00 receives R$ 2,500.00 in each instalment: no INSS, no FGTS and, under the annual PLR table, no income tax.
Frequently asked questions
Is PLR subject to INSS and FGTS?
No, as long as it follows Law 10,101/2000: negotiation with employees and the union, objective targets set before the period and at most two payments a year.
How many times a year can PLR be paid?
At most twice in the same calendar year, at least one quarter apart. More frequent payments strip the programme of its status.
How is income tax charged on PLR?
Withheld at source, exclusively and definitively, under a dedicated annual table with a higher exemption band than payroll. The amount is not added to the month's salary when computing IRRF.