How to Calculate Net Salary in CLT

When you are hired under the CLT (Consolidation of Labor Laws) regime, the salary announced in the vacancy or on the work card is the gross salary. However, the amount that actually hits your bank account on payday is your net salary.

In this comprehensive guide, we explain what discounts are required by law and how you can use our Net Salary Calculator to find out the exact amount you will receive.

Mandatory Discounts on Gross Salary

To transform gross salary into net salary, the human resources department mainly makes two deductions required by law: INSS and IRRF.

1. INSS (Social Security) discount

INSS is the mandatory contribution to Social Security, which guarantees rights such as retirement, sickness benefit and maternity pay. The rates are progressive, ranging from 7.5% to 14% depending on the worker's salary range.

As the rate is progressive, the discount is not applied directly to the total, but rather in bands, which reduces the final impact on the worker. There is also a maximum discount ceiling established annually by the government.

2. IRRF Discount (Income Tax Withheld at Source)

IRRF is the tax charged by the Federal Government on workers' income. The income tax calculation base is the gross salary minus the INSS amount already deducted and the deduction for legal dependents (if any).

IRRF rates range from exempt to 27.5%, following the official IRS progressive table. The calculation also deducts a fixed installment according to the tax bracket.

Other Optional or Contractual Discounts

In addition to mandatory tax and social security discounts, other items can reduce your net salary, such as:

• Transport voucher (VT): The employer can deduct up to 6% of the gross salary of the employee who chooses to receive the benefit.
• Meal or food vouchers (VR/VA): The discount is limited to a percentage of the cost of the benefit, in accordance with the Workers' Food Program (PAT).
• Health and Dental Plan: Co-participation or fixed monthly payment agreed in the employment contract.
• Alimony: Deducted directly from the payroll in case of court order.
• Absences and Delays: Unexcused absences proportionally reduce the month's salary and paid weekly rest (DSR).

Do the Complete Simulation

Performing this calculation manually requires consulting updated progressive tables and applying range calculations that can be complex and misleading.

To make things easier, we developed a fast and always up-to-date tool. Click here to access our Net Salary Calculator and carry out your instant simulation in just a few seconds!