Determining Company Social Security Contributions

Companies and equivalent-status contributors are required to contribute to Social Security through Instituto Nacional do Seguro Social (INSS) (Brazilian Social Security Institute) with their own resources in order to finance the benefits due to workers as follows:

  • Application of the 20 percent rate on the total of the compensation subject to INSS contribution (accumulator), without limit, paid or credited to insured individuals at its service and in case of financial institutions and equivalent-status entities an additional contribution of 2.5 percent will also be payable.

  • Application of 20 percent rate on the total of compensation or retribution, paid or credited for services rendered to it by insured individual contributor, freelance workers and other individuals without employment bond, and in case of financial institutions and the equivalent-status institutions are subject to an additional contribution of 2.5 percent.

  • Contribution intended to finance benefits granted according of the level of occurrence of labor disability as a result of working environmental risks at 1 percent, 2 percent and 3 percent rates by the company with low, medium, or high risk of accident in its main activity, respectively, on the total of compensation subject to INSS contribution (accumulator) paid or credited on any account during the month, to insured employees, freelance workers and resident physicians.

    Rates will be added by 12 percent, 9 percent, or 6 percent, according to the activity in which the company is engaged with, by the insured worker at service of the company, allows the granting of special retirement at 15, 20, or 25 years of contribution, respectively.

  • Contribution intended to third parties with variable rate in accordance with the activity developed by the company, applicable on the total of compensation, without limit, paid or credited to employees at its service.

    Rates will be defined according to FPAS code of the company. This field is at the establishment level.