What is pró-labore?
Pró-labore is the compensation of a partner or officer who works in the company — the 'owner's salary'. Unlike profit distribution, which remunerates invested capital, pró-labore remunerates work and is therefore taxed: 11% INSS (as an individual contributor, capped at the ceiling) and IRRF under the progressive table.
A partner who actually works in the business must have a pró-labore set — Receita Federal's position is that it is not possible to distribute only tax-exempt profits to someone who provides services to the business. The practical minimum reference is one minimum wage, and ideally it should reflect what it would cost to hire someone for the same role.
Pró-labore does not carry CLT rights: there is no mandatory 13th salary, vacation with 1/3 or FGTS. On the other hand, the INSS contribution gives the partner access to retirement and social security benefits.
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 partner sets a pró-labore of R$ 5,000: 11% INSS is deducted (R$ 550) and IRRF on the R$ 4,450 base under the progressive table (around R$ 290). She takes home about R$ 4,160 net — and the period's profit, distributed separately, remains income-tax exempt.
Run the numbers now, for free: Net salary calculator.
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