What can be deducted from a worker's salary? See the benefits

In the complex dynamics of labor relations, the issue of deductions from workers' salaries occupies a central position. Understanding what can legally be deducted from monthly pay is not only a matter of financial interest, but also a fundamental right for everyone involved in the world of work. 

Discounts, when carried out transparently and within the limits set by the law, are a fair and necessary practice to ensure the proper functioning of various aspects of the employment contract.

What can be deducted from a worker's salary?

In any working relationship, understanding what can be deducted from an employee's salary is fundamental to ensuring transparency and fairness in the workplace. Deductions are a natural part of working life, but it is important that both employers and employees are aware of which are legal and which are not, according to the labor laws of the country in question.

Legal discounts

Legal deductions refer to those that are permitted by law and that the employer can make from the employee's salary. They can include:

1. taxes

When it comes to deductions from a worker's salary, taxes occupy a prominent position. Withholding income tax (IRRF) is a fundamental tax obligation for most salaried workers in many countries. This tax is calculated based on the individual's salary range and other variables, such as deductions allowed by law, the number of dependents and any tax benefits.

The IRRF is a progressive tax, which means that its rate increases as the value of the worker's salary increases. This is designed to ensure that those who earn more contribute proportionally more to the public coffers. However, the complexity of the tax system often makes it difficult for workers to understand exactly how much income tax will be deducted from their salaries.

In addition to income tax, there are also other taxes that can be deducted from a worker's salary, such as the social security tax, which funds social security and social assistance programs. Social security contributions are an important part of the social protection offered to workers, guaranteeing them benefits such as retirement, sickness and death pensions.

2. Social Security Contributions

Social security contributions are an essential part of the social protection system in many countries, designed to guarantee workers' financial security during retirement and in other situations of vulnerability, such as illness, accident or death. These contributions are deducted directly from the worker's salary and allocated to social security funds, which are managed by the government.

Social security plays a key role in reducing poverty, promoting equality and stabilizing the economy. It allows workers to accumulate a financial reserve throughout their working lives, which will be used to guarantee a stable and adequate income in retirement. In addition, social security offers protection against risks such as disability, illness, unemployment and death, providing a safety net for workers and their families.

Social security contributions are calculated on the basis of the worker's salary and are deducted directly from their monthly pay. The contribution rate can vary according to the country and the social security system adopted, but is generally determined as a fixed percentage of the salary or as a progression of rates according to the salary range.

3. Mandatory benefits

Mandatory benefits are an essential part of the relationship between employers and employees, guaranteeing decent working conditions and promoting employee well-being. These benefits are established by law or collective bargaining agreements and are mandatory for all companies, regardless of their size or sector. 

Transport vouchers

Transport vouchers are a benefit guaranteed by law in many countries, designed to help workers cover the cost of public transport between home and work. This benefit aims to guarantee workers' access to employment and reduce the costs associated with commuting, contributing to improving urban mobility and reducing environmental impact.

Meal vouchers

Meal vouchers are another mandatory benefit in many countries, designed to ensure that workers have access to adequate food during their working day. This benefit can be provided in the form of electronic cards or vouchers, which can be used in partner establishments to buy meals or food.

Insurance against accidents at work

Occupational accident insurance is a legal obligation for employers to protect workers against injuries or illnesses resulting from their work. This insurance covers the costs of medical treatment, professional rehabilitation and compensation for permanent disability or death, providing a financial safety net for workers and their families in the event of work-related accidents or illnesses.

FGTS - Severance Indemnity Fund

The Severance Indemnity Fund (Fundo de Garantia do Tempo de Serviço - FGTS) is a compulsory benefit paid by the employer on behalf of the worker, with the aim of providing a financial reserve for situations such as dismissal without just cause, home ownership, retirement or financial emergencies. The FGTS is deposited monthly in an account linked to the worker at the Caixa Econômica Federal and can be withdrawn in specific situations, in accordance with current legislation.

Maternity and Paternity Leave

Maternity and paternity leave are compulsory benefits guaranteed by law in many countries, which grant pregnant workers the right to a period off work before and after giving birth, with the guarantee of maintaining their job and salary. In addition, many countries also guarantee fathers the right to paid paternity leave, giving them the opportunity to devote themselves to caring for their newborn child in the first few months of life.

4. Alimony

Alimony is a legal obligation imposed on a parent or spouse who is better off financially to provide for their children or the spouse who has become their ward after divorce or separation. This amount aims to ensure that basic needs such as food, housing, health, education and clothing are adequately met, providing a stable and healthy environment for the development and well-being of the beneficiaries.

When the person responsible for paying alimony is a worker on a fixed income, the amount set by the judge can be deducted directly from their salary, by means of a court order for payroll deduction. This deduction is made before the worker's salary is paid, ensuring that the alimony amount is passed on regularly and on time to the beneficiary.

Optional discounts

In addition to the legal deductions, there are also optional deductions, which are optional and depend on the worker's agreement. These can include

1. Health and dental plans

Many companies offer health and dental plans to employees, and the monthly fee can be deducted directly from the salary if the worker chooses to join these plans.

2. Life Insurance

Some employers offer life insurance as an additional benefit to employees, and the premium can be deducted from their salary each month.

3. Loans

Payroll loans are a common form of credit in many countries, where payment is deducted directly from the worker's paycheck. These loans can be used for various purposes, such as paying off debts, buying goods or financial emergencies.

4. Associations and clubs

Some workers choose to join sports clubs, unions or other associations, and the monthly fee can be deducted directly from their salary, if so agreed.

Benefits

In addition to discounts, workers are also entitled to a number of benefits that contribute to their well-being and financial security. Some of these benefits include:

1. Paid leave

Paid leave is guaranteed by law in many countries as a workers' right, establishing the minimum annual rest period to which each employee is entitled. This legislation aims to protect workers from exploitation and overwork, ensuring decent working conditions and an opportunity to enjoy moments of leisure and relaxation with family and friends. In addition, paid leave helps to promote workers' health and quality of life, preventing illnesses related to stress and excessive fatigue.

The period of paid leave can vary according to the legislation of each country and the policies adopted by the employing company. Generally, workers are entitled to a minimum annual rest period, which can vary from two to six weeks, depending on length of service and other factors. During the vacation, the worker continues to receive their salary as normal, including all the bonuses and benefits to which they are entitled, thus ensuring that their income is maintained during the period of leave.

2. 13th Salary

The payment of the 13th salary has a significant impact on consumption and the economy as a whole. Many workers use this extra benefit to make Christmas purchases, give gifts to family and friends, go on trips or invest in durable goods, such as household appliances and vehicles. This increase in consumption boosts various sectors of the economy, generating more jobs, increasing production and stimulating economic growth.

3. Medical Leave

Sick leave is a fundamental tool for protecting the health and recovery of workers in situations of illness or injury. By taking time off work, workers can focus fully on their recovery, following medical advice and carrying out the necessary treatments to restore their health. This time off allows workers to recover properly, avoiding health complications and ensuring a safe return to work.

In order to be entitled to sick leave, workers generally have to follow the procedures established by their employer and present a medical certificate proving the need to take time off work. This certificate must be issued by a duly qualified doctor and contain detailed information about the diagnosis, treatment and recommended period of leave. In addition, in some cases, the company may request a complementary medical assessment or a medical examination to validate the right to sick leave.

4. Retirement

Retirement also represents a guarantee of financial security for older workers. When workers retire, they have an alternative source of income, which can come from a social security benefit, such as old-age, contributory or disability pensions, or from private pension plans or personal savings. This additional income is essential to guarantee the worker's livelihood and well-being after they stop working.

Financial and pension planning is fundamental to guaranteeing a peaceful and comfortable retirement. Workers should start planning for their retirement as early as possible, saving and investing regularly in private pension plans, investment funds or other forms of savings that guarantee additional income in the future. In addition, it is important to be aware of the social security rights and benefits available, as well as the rules and criteria for granting retirement, in accordance with current legislation.

5. Unemployment insurance

The eligibility criteria and conditions for receiving unemployment insurance vary according to each country's legislation. Generally, workers must meet requirements such as having been dismissed without just cause, having worked for a minimum period and having contributed to social security for a certain period. In addition, workers must follow the procedures established by the responsible authorities, such as presenting supporting documents and meeting deadlines for applying for and renewing the benefit.

Learn more about your rights

Understanding what can be deducted from a worker's salary and what benefits they are entitled to is essential to ensuring a fair and balanced working relationship. Both employers and employees must be aware of their rights and duties, as established by the labor legislation in force in their country. 

Keeping abreast of these issues is key to promoting a healthy and productive working environment for all parties involved.

See also: Can people who work with a formal contract receive Bolsa Família?

March 31, 2024