Today : Dec 21, 2024
Economy
21 December 2024

Deadline Approaches For Second Installment Of 13th Salary

Companies must deliver final salary installment by December 20, with significant economic impacts expected.

Today marks the deadline for businesses and employers across Brazil to dispense the second installment of the 13th salary, one of the most significant benefits for workers with formal contracts. This entitlement allows employees to receive extra compensation during the holiday season, providing financial relief and stimulating consumption over this festive period.

The importance of this additional pay is underscored by estimates from the Departamento Interservidal de Estatística e Estudos Socioeconômicos (Dieese), which indicates approximately R$ 321.4 billion will be injected back to the economy as workers receive their dues. With around 92.2 million Brazilians set to benefit, the average payout is projected at R$ 3,096.78 per individual.

The 13th salary system, established by Brazil’s Labor Laws under Law 4,090/1962, mandates two payments each year. The first segment was due by November 29, whilst the second installment must be disbursed by December 20. This structure aims to financially assist workers who have dedicated time throughout the year, reflecting their contributions to the labor market.

To qualify for receiving the 13th salary, workers need to have been employed for at least 15 days within the year. Whether they are full-time employees, on maternity leave, retirees, or pensioners, as long as they fit these criteria, they are entitled to this benefit. Notably, if individuals have been dismissed without just cause, they also retain the right to receive this salary, calculated proportionately based on their period of employment.

Calculations for the 13th salary arrangement are relatively straightforward, yet they vary between installments. The first part is simply half of the gross salary without any deductions, whereas the second part incurs taxes, including Imposto de Renda and INSS. For those whose monthly gross salary is R$ 5,000, the first installment would amount to R$ 2,500, whereas the second would reflect necessary deductions, yielding around R$ 1,635.68 after accounting for applicable taxes.

Unfortunately, not everyone receives their payments as scheduled. Delays and non-payments are not uncommon, compelling workers to seek their rightful earnings proactively. Richard Domingos, of Confirp Contabilidade, offers some insights: "The first step is to unequivocally verify non-receipt of the payments prior to filing complaints, as many companies may advance payments for various reasons, including financial strategies. Workers should first reach out to Human Resources or finance departments to notify them of any inconsistencies."

If issues persist, employees have avenues to escalate the matter. Approaching their respective unions could yield substantial support and advice on how to proceed with formal complaints. Should this fail, they can escalate the concern to the Ministry of Labor, where legal frameworks are available to mediate the situation. Further, the Ministry of Public Labor can address cases of non-compliance by employers who fall short of their legal obligations.

At the heart of the 13th salary is its purpose to provide liquidity during the festive season, promoting consumption and uplifting living standards as families celebrate the holidays, especially during the post-pandemic recovery era. The upcoming payments can significantly impact both workers’ financial situations and the broader market trends.

It’s also noteworthy to mention the supplementary provisions surrounding the 13th salary. For example, employers must facilitate payments if deadlines fall on holidays or weekends, ensuring no delays nor infringements on this right. Non-compliance can result in administrative penalties for companies, which could escalate should violations persist.

With the deadline fast approaching, the emphasis lies on both employers’ responsibilities and employees' rights to secure their payments. Proper awareness, proactive communication, and knowledge of rights under the law can empower employees to navigate this period more effectively.

Conclusively, as December 20 draws near, securing the second installment of the 13th salary remains pivotal for many Brazilian families, providing much-needed financial support during the year-end festivities.

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