Net Salary ↔ Gross Salary (CLT) in Brazil: deductions, full calculation and how to read your payslip
Knowing the difference between gross salary and net salary is essential to plan your budget, negotiate offers and evaluate job opportunities. In Brazil, people hired under the CLT regime have mandatory deductions (such as progressive INSS and IRRF) and company-specific deductions/benefits (e.g., transportation allowance, health plan, voluntary contributions and alimony). This guide explains each component, provides a practical example and highlights useful KPIs (hourly rate, daily rate, 13th salary and vacation), plus a shortcut to our Net Salary Calculator to simulate your case in minutes.
1) Gross vs Net (what changes in practice)
Gross salary is the contracted amount before deductions. It is the base for INSS and IRRF and other company-agreed discounts (e.g., transportation and health plan). Net salary is what effectively hits your bank account after subtracting all deductions on the payslip.
Understanding this difference avoids surprises on your first paycheck and helps estimate how much remains for expenses, goals and investments. Even if two roles offer the same gross, the net can vary due to benefits, effective tax burden and internal policies.
2) Mandatory deductions: INSS, IRRF and FGTS
Mandatory deductions are standardized by law and appear on any CLT payslip:
- Progressive INSS: social security contribution calculated by salary brackets. Each bracket has a rate and you pay the proportional sum (similar to income tax). The progressive model makes the contribution fairer as income grows.
- IRRF (withholding income tax): calculated after deducting INSS and other legal deductions (e.g., dependents and alimony). IRRF is an advance of your annual income tax.
- FGTS (8%): paid by the employer to your FGTS account, it does not reduce your net salary. It is part of your total compensation and can be used in specific situations (e.g., home purchase, termination without cause, retirement, etc.).
3) Additional benefits/deductions (VT, health, union, alimony)
Beyond the mandatory items, there are benefits and deductions that vary by company and collective agreements. They significantly affect your net amount and must be included in the analysis:
- Transportation allowance (VT): the employee’s discount is legally limited to 6% of base salary. Some companies subsidize part or all of the transport cost.
- Health/dental plan: may have cost sharing. Often appears as a fixed discount on the payslip. Evaluate coverage and network to compare offers.
- Union/assistance contribution: may occur depending on conventions and agreements. Check frequency and amount.
- Alimony: when applicable, can be informed in R$ or as a % of gross. Generally it is considered before IRRF, lowering the tax base.
- Other discounts/benefits: gym, parking, culture voucher, co-payments, etc. Small values add up and change the final net.
4) Worked example (step by step)
Let’s go through a didactic example to understand the payslip dynamics. The numbers below are illustrative for educational purposes; in practice, effective rates and exact values may vary according to legislation, salary bracket and company benefits. To simulate your case precisely, use the Net Salary Calculator.
4.1 Reference scenario
- Gross salary: R$ 5,000.00
- Dependents (IR): 1
- Transportation (VT): 6%
- Health plan: R$ 250.00
- Assistance contribution: R$ 25.00
- Alimony: not applicable
- Bonus this month: R$ 0.00
| Item | Calculation (illustrative) | Amount (R$) | Note |
|---|---|---|---|
| INSS | Progressive by brackets | ≈ 570.00 | Applied by parts of the salary in each bracket |
| IRRF base | Gross − INSS − deductions | ≈ 4,430.00 | Deducts INSS and dependent |
| IRRF | IR brackets on the base | ≈ 335.00 | Varies according to bracket and deductions |
| VT | 6% of base salary | 300.00 | Limited to 6% by law |
| Health | Fixed amount | 250.00 | Co-payments may vary |
| Assistance | Fixed amount | 25.00 | Per agreement/convention |
| Total deductions | ≈ 1,480.00 | INSS + IRRF + VT + health + assistance | |
| Net salary | Gross − deductions | ≈ 3,520.00 | Amount that hits your account |
In this example, the worker with R$ 5,000.00 gross would have a net of about R$ 3,520.00. The best way to reach your number is to simulate with your own parameters: dependents, alimony (in R$ or %), transportation, health plan, union/assistance contribution, bonuses and other discounts.
4.2 Common variations (what changes your net)
- Dependents: each dependent reduces the IRRF base; families with children or dependents usually have a lower effective tax rate.
- Alimony: correctly informed, it reduces the IR base and changes the net.
- Subsidized transportation: if the company covers part of the cost, the discount may be below the usual 6%.
- Premium health plan: better coverage, but higher fixed monthly discount.
- Bonuses and commissions: increase the month’s calculation base and may change IRRF temporarily.
5) Useful KPIs: hour, day, 13th and vacation
To compare offers across cities or regimes, use indicators that put salary on the same basis:
- R$/hour: often considers 220h/month under CLT. Useful to compare with freelance or PJ.
- R$/day: approximation with ~22 business days per month. Helps compare cost of living and commute.
- 13th salary (≈ 1× gross): usually paid in two installments; include it in annual planning.
- Vacation + 1/3: corresponds to ~1.33× the gross salary. Boosts income in specific periods, with charges per law.
6) Tips to negotiate better and plan your budget
- Compare the job’s “effective cost”: not just gross, but the total package (health, VT, bonus, PLR, raise policy, home office, flexible benefits).
- Ask for a sample payslip: helps check how deductions appear and simulate precisely.
- Estimate scenarios: simulate with and without dependents, alimony in R$ and %, with VT ranging from 0% to 6% — this shows the likely net range.
- Plan annual goals: include 13th and vacation in your cashflow; avoid relying on uncertain bonuses for fixed expenses.
- Emergency fund: 3–6 months of monthly expenses, preferably in low-risk, high-liquidity investments.
- Watch for law changes: updated INSS/IRRF brackets may change your net throughout the year.
7) Run your net salary simulation
With the right foundations, understanding your net salary becomes simple. Try different gross values, inform dependents, add alimony (in R$ or %) and adjust discounts like VT, health plan and contributions. In a few clicks you’ll see total deductions, net, effective IR rate, FGTS (8%) and estimates for 13th and vacation.
💡 FlowZenHub tip: use the R$/hour KPI to compare offers with different workloads. Sometimes, a slightly lower gross with reduced hours and strong benefits may result in better quality of life and a more attractive net/hour.