Employee Cost Calculator

How much does a CLT cost in Brazil?

If you ask any business owner, they will say that an employee 'costs twice the salary.' But does the math really add up? The real cost of a formally registered employee depends heavily on the **Tax Regime** under which your CNPJ is classified.

Simple National vs Real Profit

• Simple National Companies:For the vast majority of small businesses (Appendices I, II, and III), the payroll tax burden is subsidized. The business owner does not pay the employer's INSS. The extra costs are basically limited to the monthly FGTS and the provisions for Vacation and 13th salary. The extra cost is around30% to 40%more than the base salary.
• Actual / Presumed Profit:Here the hit is hard. The company begins to pay the infamous employer INSS contribution (20%) combined with other fees from the Sistema S (Sebrae, Senai, RAT/FAP). In this scenario, the extra cost quickly jumps to the range of60% to 70%more than the base salary.

It is worth remembering: Our calculator focuses on mandatory charges and provisions in cash. Optional benefits, such as Transportation Voucher, Health Plan, and Meal Voucher make this cost even higher!