The deadline for receiving the second installment of the 13th salary is closing in, with employers required to make payments by December 20, 2024. This annual financial benefit, established to assist employees during the holiday season, is expected to inject approximately R$ 321.4 billion back to the economy of Brazil this year.
Originated with the aim to support workers and their families during the end of the year, the 13th salary is guaranteed by the Brazilian Constitution and mandates payments to all employees who have signed work contracts (CLT). This unique provision has been part of Brazil's labor laws since 1962, providing much-needed financial assistance to millions of Brazilians.
According to Ydileuse Martins, labor law expert, "For workers to receive the 13th salary, they must have worked more than 15 days during the year." This highlights the basic requirement for eligibility, emphasizing the need for substantial work during the year to qualify for the full benefit.
The total 13th salary is calculated as 1/12 of the employee's total salary for each complete month worked. Workers who technically have less than the requisite days worked will not have those months counted. Employees who have worked for the full year may receive this as part of their overall annual salary, reflecting the fruits of their labor throughout the year.
The deadlines for payment are distinctly laid out: the first installment was due as of November 29, 2024, and the second installment must be deposited no later than December 20, 2024. The first payment consists of 50% of the worker's gross salary, without any deductions for taxes. Many companies opted to pay the full amount as specified, aiding employees significantly during the holiday season.
Conversely, the second installment, which is smaller, will come with deductions for standard taxes such as the Nacional Social Security Institute (INSS) contributions and Income Tax (IR). Hence, the net amount received will reflect these deductions, which often baffle workers who may not be accustomed to seeing their earnings reduced significantly at the end of the year.
The calculation for both installments demands clarity, especially for workers with variable incomes, such as salespersons or hourly workers. The second installment will see deductions equated to the actual income received through the year’s progressively earned salary.
The economic ramifications of this annual payout are significant. Studies indicate approximately 92.2 million Brazilians will receive the 13th salary this year. This payout is anticipated to be particularly beneficial for the South region of Brazil, which is expected to absorb roughly 16.7% of the total amount distributed.
Data estimates reveal regional distributions will vary, aligning with the local economy and employment statistics. Notably, the Southeast region is getting more than half of the nationwide distribution, reflecting its economic strength and population density.
Failure to adequately make these payments does not come without consequences. Employers who neglect this legal obligation can incur administrative fines of R$ 170.16 for each employee affected. Such penalties are intended to encourage compliance and prioritize the economic well-being of workers, allowing for fair remuneration during the festive period.
Consequently, if employers delay or withhold payment, employees should take steps to resolve the issue. Beginning with internal discussions through human resources (HR) departments may yield swift solutions. If unresolved, approaching labor unions or formalizing complaints with the Ministry of Labor can help expedite necessary solutions for workers attempting to enforce their rights.
Overall, the second installment of the 13th salary this year serves not only as a bonus to employees but is also indicative of Brazil’s broader economic pulse. With millions of employees reliant on this annual payment, compliance to these payment guidelines remains pivotal not just for individual well-being but also for the health of the nation’s economy.
