What are payroll taxes in Brazil?

Social Security contributions For the year 2018, employees must pay contributions to social security at the following monthly rates:

8% on earnings up to BRL1,693,72.
9% on earnings from BRL1,693,73.95 to BRL2,822,90.
11% on earnings from BRL2,822,91 to BRL5,645,80.
The employer withholds these contributions at source. There is a cap of BRL621,04 (reviewed on a yearly basis).
The employer must also pay contributions to the National Social Security on its entire payroll at rates that vary from 26.8% up to 28.8% depending on the company’s core business.

Personal Income Tax  For the year 2018, employees must pay income tax on their salaries at the following monthly rates: 7.5% minus BRL142,80 on earnings from BRL1,903.99 to BRL2,826.65.
15% minus BRL354.80 on earnings from BRL2,826.66 to BRL3,751.05.
22.5% minus BRL636.13 on earnings from BRL3,751.06 to BRL4,664.68.
27.5% minus BRL869.36 on earnings above BRL4,664.68.

Hannah Kohl
Author:
Hannah Kohl. Head of Customer Success. Has extensive experience in the HR and IT industries. Helped 100+ international clients to achieve their global goals.

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