How to Create Payslips for Brazilian Employees (INSS & FGTS)

Why Brazilian Payslips Are Uniquely Complex

Brazil's Consolidation of Labor Laws (CLT) imposes some of the most detailed payroll requirements in the world. Every employer must provide a holerite (also called contracheque), a payslip that itemizes gross earnings, all mandatory contributions, and net pay. Beyond monthly salary, Brazilian payroll includes obligations like the 13th salary, vacation pay with a constitutional bonus, and employer-side deposits to the FGTS fund.

Failing to issue accurate payslips or miscalculating deductions can result in fines from the Ministry of Labor and lawsuits in Brazil's labor courts (Justica do Trabalho).

Understanding Brazilian Payroll Deductions

INSS (Social Security) - Employee Contribution

INSS uses a progressive rate structure applied to salary bands:

Salary Range (BRL)	Rate
Up to 1,412.00	7.5%
1,412.01 - 2,666.68	9.0%
2,666.69 - 4,000.03	12.0%
4,000.04 - 7,786.02	14.0%

INSS is calculated progressively, meaning each portion of salary is taxed at the rate for its respective band, similar to income tax brackets.

FGTS (Severance Fund) - Employer Contribution

Contribution	Rate	Paid By
FGTS	8.0%	Employer
FGTS on 13th Salary	8.0%	Employer

FGTS is deposited monthly into the employee's linked account and is not deducted from the employee's pay. It appears on the payslip for transparency.

IRRF (Income Tax) - Employee

Taxable Income (BRL)	Rate	Deduction (BRL)
Up to 2,259.20	Exempt	0
2,259.21 - 2,826.65	7.5%	169.44
2,826.66 - 3,751.05	15.0%	381.44
3,751.06 - 4,664.68	22.5%	662.77
Above 4,664.68	27.5%	896.00

IRRF is calculated on the salary after deducting INSS and any eligible dependents (currently BRL 189.59 per dependent).

Step-by-Step: Create a Brazilian Payslip with CleverSlip

Step 1: Configure Your Company

Log in to CleverSlip and set up your company profile with your CNPJ, company name, and address. This information is required on every Brazilian payslip by law.

Step 2: Select the Brazil Payslip Template

Choose the Brazil holerite template from CleverSlip's template library. It includes common fields for INSS, FGTS, IRRF, and additional Brazilian-specific line items.

Step 3: Enter Employee Information

Add the employee's full name, CPF number, position (cargo), admission date, and number of dependents. The admission date is important because it affects vacation pay accrual and 13th salary calculations.

Step 4: Input Earnings

Enter the following as applicable:

• Base salary (salario base)
• Overtime (horas extras) at 50% or 100% premium
• Night shift premium (adicional noturno) of 20%
• Hazard pay (insalubridade or periculosidade)
• Transportation voucher (vale transporte) - employer deducts up to 6% of base salary
• Meal voucher (vale refeicao)

Step 5: Review Deduction Fields

CleverSlip estimates common deduction fields from the values you enter:

• INSS using the progressive rate table
• IRRF after deducting INSS and dependents
• Vale transporte discount (up to 6% of base salary)
• FGTS deposit shown as an employer obligation line item

Step 6: Handle 13th Salary and Vacation Pay

Brazilian employees are entitled to a 13th salary (decimo terceiro), paid in two installments: the first by November 30 and the second by December 20. Vacation pay includes the regular salary plus a constitutional one-third bonus (terco constitucional). CleverSlip's template includes dedicated line items for these supplemental payslips.

Step 7: Download and Distribute

Review the completed holerite for accuracy, then download it as a PDF. Distribute it to the employee before payday. CleverSlip keeps records organized, while eSocial filing remains a separate employer obligation.

Compliance Tips for Brazil

• FGTS deposits must be made by the 7th of each month via the FGTS Digital system.
• The eSocial platform requires employers to submit payroll events electronically on a strict schedule.
• Payslips must be retained for a minimum of 5 years for labor audit purposes.

CleverSlip's Brazil template gives you a structured holerite layout for INSS, FGTS, IRRF, and employer obligation line items. Verify calculations and filings before issuing payroll records.