Determining Employee Social Security Contributions

Every employee is required to contribute toward Social Security. The company discounts the amount of the contribution from the employee's compensation and the calculation is made through the application of percentages in a progressive manner, on the monthly contribution salary. When calculating a contribution note always the maximum limit of contribution salary as the employee's contribution, unlike the contribution due by the company that is applicable on the total of compensation is restricted to the maximum limit. For example, if the maximum limit for contribution salary starting from March of 2020 is BRL 6.101,06 (maximum limit set forth by the government at company level, applying to all employees) and the employee's compensation is BRL 7.000,00, the contribution due by employee will be calculated considering only the limit of BRL 6.101,06. Employee's contribution salary consists of the compensation actually paid or credited on any account, during the month, by one or more companies, including earnings paid in kind.