5 main questions about Pró-labore

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Do company partners receive a salary? How can the amount of this remuneration be established? In most cases, the pro-labore is the most widely used system for remunerating managers in the company's articles of association.

The distribution of profits or interest on equity are also other possibilities for remunerating partners, but in the case of pro-labore the relationship is different. More than establishing the form of remuneration for partners and managers, pro-labore has a direct relationship with the company's financial and tax planning .

Want to learn more about pro-labore? The Lowtax team has prepared a selection of the 5 most relevant questions on the subject. Check it out below!

1. What is Pro-labore?
The term pro-labore means “for work” in Latin. In other words, it is the remuneration that a partner or manager of a company receives for the work performed for a given company. Although it is often tunisia whatsapp lead confused with “salary”, it is actually an administrative expense of the business.

2. What is the difference between Pro-labore and salary?
The main difference is in the position of the managing partner and the employee. The pro-labore remunerates the managing partner and the salary remunerates the company's employee.

Furthermore, unlike a salary under the CLT regime, there is no obligation regarding rights such as the 13th salary, Severance Pay Guarantee Fund (FGTS) and vacations. These benefits can even be offered, but through an agreement between the company and the administrator. However, for this to happen, it is necessary to specify the role of the administrator in the company's articles of association, which can be made up of one or more people.

It is important to emphasize that it is through the pro-labore that the partner makes his contribution to the INSS. Therefore, 11% of the amount of the pro-labore must be paid through the Social Security Guide (GPS).

3. How to calculate the value of the Pro-labore?
Regarding the value of the pro-labore, the only rule is that it cannot be less than the current minimum wage. The law does not determine a specific value, and it is up to the partners or the business owner to determine the value of the pro-labore. Learn more about the subject here . To establish the value, you can start by following these steps: A. Define the activities of the managing partner in the company; B. After that, conduct a survey to find out the average salary of a professional who performs the partner's activities in the company; C. Define the value of the partner's pro-labore, based on the average market salary, and consider the monthly payment of the remuneration.





After establishing the value, it is necessary to formalize the agreement so that it has legal validity in labor law. This can be done with specific clauses in the company's own articles of association, registered with the state's Commercial Board.

4. When should it be removed?
This definition must be established in the company's articles of association. According to the law, there is no set periodicity for withdrawal. However, it should be noted that the pro-labore should only be paid when the company generates revenue. To learn more about this subject, consult the website with the rules here .

5. How to declare the Pro-labore in the IRPF?
Since it is taxable income, it must be declared annually in the Income Tax. To do so, it is necessary to fill in the “Taxable Income Received from a Legal Entity” tab, by the holder, with the main data, such as the name and CNPJ of the paying source.

Do you have any questions about pro-labore or would you like to know more about other forms of partner remuneration?