Understanding Legal Provisions

To guarantee that companies have sufficient funds to compensate employees for accrued vacation time (including 1/3 vacation) and 13th salary, and that monies are available for related INSS (Instituto Nacional do Seguro Social) and FGTS (Fund of Guarantee for Service Time) payments, Brazilian companies must set aside provisions to cover these payments. Global Payroll for Brazil can calculate and report the provisions required for each month.