What is PLR (Participação nos Lucros e Resultados) or Profit Sharing in Brazil?

PLR, or Profit Sharing, is an additional form of compensation where employees receive a share of the company's profits. Unlike traditional bonuses, which may be discretionary or based on individual performance, PLR is often tied to the company’s overall financial performance. This aligns employees' interests with the company's success, providing motivation and a sense of ownership.


PLR When the CBA Specifies Exact Amounts

In certain scenarios, such as under the Sindepres Collective Bargaining Agreement (CBA), the PLR amount is predetermined and not directly linked to the company's financial results. Here’s how this arrangement works:

Fixed Amounts:

  • Predefined Payments: The CBA specifies the exact PLR amount to be paid to employees. This amount remains constant and does not vary with the company’s profit levels.
  • Certainty for Both Sides: This fixed arrangement offers predictability. Employers know the exact cost of PLR, while employees receive a guaranteed amount as detailed in the CBA.

Negotiation and Agreement:

  • Collective Bargaining: The fixed PLR amount is the outcome of negotiations between the employer and the union. During these bargaining sessions, both parties agree on the amount and terms of the PLR.
  • Implementation: Employers must adhere to the terms set out in the CBA, ensuring that the agreed-upon PLR amount is paid to employees as specified.

Taxation:

  • Regulations: PLR payments in Brazil are subject to specific tax regulations. Employees should understand how these payments are taxed and their implications for overall tax liability.


Typical Amounts

In 2024, the PLR amount was relatively modest, generally around $55 USD per employee. This fixed amount reflects the terms established through the CBA, and is not tied to the company's performance but rather to negotiations between the employer and the union.


Publication and Payment Timing

Publication Date:

  • Uncertain Timing: The precise date when the PLR amount will be published is not fixed. Although the amount is outlined in the CBA, it may not be announced until closer to the payment period.

Prorated Payments:

  • Based on Start Date: PLR payments are prorated based on the employee’s start date. Employees who have not been with the company for the entire period will receive an adjusted amount.
  • Proportional Distribution: This ensures fairness, with employees joining partway through the period receiving a proportionate share of the PLR payment.

Payment Schedule:

  • CBA Timeline: PLR payments are made according to the schedule specified in the CBA. Employers must follow this timeline to ensure that payments are processed timely as outlined in the agreement.


Understanding how PLR works helps employees at Horizons in Brazil to anticipate their compensation and ensure they receive their entitled share of profits as stipulated in the CBA. For further questions or specific details about your PLR payments, please consult with the HR department.

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