Allowances and travel per diems in Brazil: are they salary?

Since the 2017 reform, allowances and travel per diems are not part of an employee's pay, whatever the amount, and carry no labor or social security charges (CLT, art. 457, § 2). The payment must cover work expenses. If a "per diem" is paid without travel, as a fixed salary top-up, the courts may treat it as disguised salary.

Quick summary

• Per diems and allowances: not salary, whatever the amount, since Nov 11, 2017.
• Before 2017: per diems above 50% of salary counted as pay.
• Reimbursement: work travel expenses must be paid by the employer.
• Travel time: may count as time at the employer's disposal, depending on the case and the agreement.
• Fraud: a fixed amount called a per diem, with no travel, may be salary.

Travel time and overtime

Time spent traveling for work outside normal hours may be considered time at the employer's disposal, especially when the employee is not free to use that time. It depends on the case and collective agreement rules. Keep records of departure and arrival times.

How to protect yourself

1. Ask for the company's travel policy in writing.
2. Keep expense receipts and reimbursement requests.
3. Record travel times.
4. If per diems are paid every month without travel, keep payslips and schedules.

Frequently asked questions

Is INSS deducted from travel per diems?

No. Since 2017, per diems are not part of the contribution base.

Can my employer make me pay for the trip and reimburse me later?

Ideally the employer advances the expenses. Reimbursement must be full and on time.

Is a remote-work allowance salary?

No, if it covers remote-work expenses, as agreed between the parties.

Read more in this series

• Do bonuses count as salary?
• Time at the employer's disposal
• Remote work rights
• Index: complete guide to labor rights

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