How Salary Calculation Works in Brazil

Brazilian salaries (CLT regime) are subject to INSS social security contributions and IRPF income tax, both withheld monthly by the employer.

INSS is calculated progressively across 4 tiers (7.5% to 14%), with a ceiling of R$8,157.41. The maximum monthly INSS contribution is approximately R$908.86.

After INSS deduction, income tax (IRPF) is calculated on the remaining base with rates from 7.5% to 27.5%. Employees also receive a 13th salary (décimo terceiro) paid in two installments in November and December.

Data source: https://www.gov.br/receitafederal

Last verified: 2026-04-25