Deductions from salary in Brazil: what the employer can deduct and what is illegal

An employer can only deduct from salary advances, amounts provided by law or collective rule and, for damage caused by the employee, only with intent or when deduction for negligence is provided in an agreement (CLT, art. 462 — the CLT is Brazil's Consolidated Labor Laws). Deductions authorized by the employee, such as health insurance and private pension, are also valid as long as there is no coercion (TST Precedent 342 — the TST is the Superior Labor Court).

Quick summary

• Permitted: INSS (social security), income tax, alimony, transportation voucher (up to 6%), advances, contributions in a collective rule, payroll loans.
• Authorized in writing: health and dental insurance, life insurance, private pension, associations.
• Damage caused by the employee: deduction only with intent or with negligence + a contractual provision (art. 462, §1).
• Limit: case law caps total authorized deductions at 70% of base salary (TST SDC Guideline 18).
• Illegal: PPE, required uniforms, internal "fines", business losses, a customer's bounced cheque without the employee's fault.

Controversial situations

• Cash shortages: if the cashier receives a cash-shortage allowance, differences may be deducted under the rules; without the allowance and without proven fault, the deduction is questionable.
• Damaged phone or laptop: only with intent or negligence provided for in the contract.
• Traffic fines in a company vehicle: depends on fault and a contractual provision.
• Absences and lateness: may be deducted when unjustified — see Excused absences.
• Deducting goods stolen by store customers: illegal without proof of the employee's intent.

How to recover improper deductions

1. Identify the line on your payslip — see How to read your payslip.
2. Ask HR for a written justification.
3. Revoke in writing any authorizations you no longer want.
4. Claim a refund through the union or in the Labor Court, within 2 years after the end of the contract.

Frequently asked questions

Can the employer deduct for damage I caused by accident?

Only if the contract provides for deduction in case of negligence. Without that provision, no.

I signed an authorization for health insurance deductions. Can I cancel it?

As a rule, yes, with written notice, subject to the plan's rules.

Read more in this series

• How to read your payslip
• Uniforms and PPE: who pays
• CLT payroll loan: margin and FGTS
• Salary reduction
• Index: complete guide to labor rights