Salary advances in Brazil: are they mandatory?

A salary advance, known as a "vale", is not mandatory under the CLT. The law only requires the monthly salary to be paid by the 5th business day of the following month (art. 459, § 1). An advance becomes mandatory when the category's collective agreement, the contract or company practice provides for it, and the amount advanced is deducted when the salary is paid.

Quick summary

• Law: does not require advances.
• Collective agreement: many categories guarantee an advance at a set percentage, such as 40% of salary.
• Practice: if the employer has always paid it, stopping suddenly may be challenged as a harmful change.
• Deduction: the amount advanced is subtracted from the month's salary.
• Termination: an advance not yet offset may be deducted from severance, up to one month's salary (CLT, art. 477, § 5).

Advance vs. loan

An advance is part of the same month's salary paid early. A loan is a different kind of help, which can be deducted in installments with the employee's written authorization (art. 462). Interest and deductions above what was agreed are irregular.

How to check

1. Look in the collective agreement for an advance clause and its date.
2. Check the advance line and the matching deduction on your payslip.
3. If the agreement guarantees it and the employer does not pay, ask in writing and contact the union.

Frequently asked questions

Can my employer stop paying the advance?

If there is no obligation in the agreement or contract, yes, with advance notice. If it was paid regularly for years, the change can be challenged.

Is INSS deducted from the advance?

INSS and income tax apply to the month's salary, not to the advance separately.

Can I ask for an advance on vacation or the 13th salary?

The 13th can be advanced with vacation if requested in January. Vacation pay is due 2 days before it starts.

Read more in this series

• Late wages
• Salary deductions
• Collective agreements
• Index: complete guide to labor rights

Topic: this guide is part of Pay and benefits, with all the guides on the subject.