Calculating Earnings

Global Payroll for Brazil enables you to calculate:

  • Base compensation

  • Bonuses and premiums

  • Additional earnings

  • Overtime

To calculate earnings for employees, the system uses the following earning elements:

Salary

The amount paid depends upon the employee category and is calculated for the payment period.

This table describes the elements that the system uses to calculate salary:

Earning Element

Description

SALARIO MENS

Contains the monthly salary for accumulation monthly rate from Job record.

SALARIO

Used to pay salary for monthly employees.

SALARIO SAFR

Used to pay salary for agricultural workers.

HORASNORMAIS

Used to pay labor hours according to a planned work schedule for hourly employees.

DSR HR NOR

Used to pay rest day hours according to a planned work schedule.

Note: Delivered earning elements that include the abbreviation MEN, such as PERIC MEN (hazardous bonus monthly) are used to calculate other earnings or deductions that are based on the monthly amount even though the employee does not receive the entire monthly payment.

Commission

Payment of commissions are required only upon conclusion of the transaction to which they refer. Termination of employment does not halt the payment of a commission. Commissions are payable monthly, or within three months of the settlement agreement. To calculate commissions, the system uses the COMISSAO earning, which is populated by positive input for each employee.

DSR Commission - Regarding Weekly Rest

For commissions corresponding to Sundays and holidays, the system uses the earning DSR COMISS to pay the estimated commission, and the DSR COMMISSAO accumulator and FP FM DSR formula.

Minimum Guaranteed

The minimum guaranteed salary is either defined by the Labor Collective Agreement and the professional category, or by the minimum wage. The difference between the salary earned and the minimum guaranteed salary must be paid by the organization and not compensated in future payments.

Formula FP FM MIN GAR compares the commission with the minimum guaranteed value specified on the Union Parameters BRA Page. If the commission is less than the minimum the system adjusts earning MIN GARANTID with the value needed to reach the minimum.

Cost Allowances and Travel Expenses

Cost allowances and travelling expenses may be granted and will be taxed when they exceed 50 percent of the salary value. This table describes earnings for Global Payroll for Brazil:

Earning

Description

DIARIAS VIAG

This earning is used to pay daily amounts in case of trips. Receive days (as units) through Positive Inputs. Formula FP FM DIARIAS checks if the calculated amount is greater than 50% of employee salary. In this case, put zero to this amount and keep the value in variable FP VR DIARIAS>50%. This earning is nontaxable.

DIARIAS>50%

This earning is used to pay daily amounts in case of trips. It receives its value from variable FP VR DIARIAS>50%. This earning is taxable.

AJUDA CUSTO

Earning to pay the cost allowances. This value comes from positive input for each employee.

Global Payroll for Brazil enables you to create bonuses, replacement bonuses, and position compensation bonuses.

The bonus earning uses the formula FP FM BONUS to calculate its final amount. This formula applies to a percentage based on variable FP VR % BONUS over the employee remuneration and checks the limit value from variable FP VR LIMITE BONUS.

The replacement bonus dummy earning GRAT SUB MEN is populated by positive input for each employee. This element stores the monthly amount and can be used in some accumulators. The earning GRATIF SUBS is used to pay the replacement bonus. This value can be prorated.

The position compensation bonus dummy earning is populated by positive input for each employee. This element stores the monthly amount and can be used in some accumulators. The earning GRATIF FUNC is used to pay the position compensation bonus. This value can be prorated.

The system uses the earning PREMIO to calculate premiums. Its value is determined by positive input for each employee.

Working under risky conditions can merit extra pay. Percentages may vary according to union and collective agreements. This table lists the allowance types and the formulas and elements used for each:

Type of Allowance

Calculation Formula

Elements Used

Additional Allowance for Hazardous Labor

Calculation Base * 0,30

The system calculates these earnings only for employees with hazard levels specified on the Payee Parameters page:

  • Generation Control FP GC PERICULOS

  • Dummy Earning PERIC MEN (Calculates and stores the monthly amount. This earning can be used in accumulators.)

  • Earning PERICULOSIDA (Used to make payments.)

  • Accumulator PERICULOSIDADE (Calculation base. This value can be prorated.)

    Accumulator ACUM PERICULOS (Defines the Calculation Base used to obtain the earnings PERIC MEN and PERICULOSIDA amount.)

Additional Allowance for Unhealthy Labor

Level 1: Minimum Wage * 0,10

Level 2: Minimum Wage * 0,20

Level 3: Minimum Wage * 0,40

The system calculates these earnings only for employees with unhealthy labor levels specified on the Payee Parameters page:

  • Generation control FP GC INSALUBR

  • Dummy earning INSALU MEN (Calculates and stores the monthly amount. This earning can be used in accumulators.)

  • Earning INSALUBRIDAD (Used to make payments. This value can be prorated.)

  • Variable FP VR MIN NAC (Used to store the national minimum wage.)

  • Bracket FP BR % INSALUB (Used to convert the Payee Parameter page to a percentage.)

Night Shift

Night Shift Hours * Hour Value * 0,20

Earning ADIC NOTURNO: (This is a Unit*Rate*Percent earning.)

  • The units should be entered through positive input.

  • The rate is defined by the hourly rate.

  • The percent is informed directly in the earning definition

Length of Service

Annual: Value of Annuity * Years Worked

Biennium: Value of Biennial * (Years Worked/2)

Quinquennium: Value of Quinquennium * (Years Worked/5)

Length of service can be calculated in many ways. This payment is optional. The PeopleSoft template includes a quinquennium example.

  • Dummy earning QUINQUEN MEN (Calculates and stores the monthly amount. This earning can be used in accumulators.)

  • Earning QUINQUENIO (Used for payments. This value can be prorated.)

  • Formula FP FM QUINQUENIO (Used to obtain the units to be paid. The formula divides the length of service duration element (FP DR TEMPO SERV) by 5.)

  • Bracket FP BR QUINQUENIO (Used to obtain the percent in the variable FP VR 5 QUINQUENIO according to the Union Code on the Job Data table.)

Transfer

Calculation Base * Percentage of Transfer

Earning ADIC TRANSF (This is a Base*Percent earning that applies 25% over the accumulator ACUM AD TRANSF.)

Standby Employee

Paid on a percentage basis.

Earning SOBREAVISO (This is a Unit*Rate*Percent earning that receives the units through positive input. The system uses the variable FP VR PCT SOBREAV to apply an hourly rate to the payment 0.)

The system uses the allowances described in this table to calculate overtime:

Type of Allowance

Calculation Formula

Elements Used

Weekday Overtime

Monthly Calculation Base / Monthly Base Hours * Quantity of Overtime * 1,50

Earnings HORA EX D50%, HORA EX D70%, HORA EXD100%, HORA EX N50%, HORA EX N70%, HORA EXN100% (These earnings are Unit*Rate*Percent earnings. Units are entered through positive input. Rate is defined by the formula FP FM VR HR>HE, which divides the accumulator ACUM HORAS EXT by Standard Hours. Our template uses monthly standard hours. The percent is stored directly in the earning definition.)

Sunday and Holiday Overtime

Monthly Calculation Base / Monthly Base Hours * Quantity of Overtime * 2,00

  • Earning DSR ADC HS (This is a Base*Percent earning.)

  • DSR accumulator

  • Formula FP FM CONTA HORAS (Preprocess formula.)

  • Formula FP FM DSR (Calculates the percentage.)