Commissioned salespeople in Brazil: guaranteed minimum wage, paid weekly rest on commissions and chargebacks

A salesperson paid by commission is entitled at least to the minimum wage or the category's minimum pay, even in months of weak sales. Commissions generate paid weekly rest and are reflected in vacation, 13th salary and FGTS. The employer can only charge back a commission if the buyer becomes insolvent (Law 3,207/1957, art. 7).

Quick summary

• Minimum guarantee: minimum wage or the category's minimum pay (Constitution, art. 7, VII).
• Paid weekly rest on commissions: owed (TST Precedent 27 — the TST is the Superior Labor Court).
• Commission owed: when the sale is concluded (accepted by the employer), even if payment is in installments.
• Chargeback: only if the buyer becomes insolvent (art. 7 of Law 3,207/1957).
• Overtime for pure commission workers: only the supplement on commissions (TST Precedent 340).
• Knock-on effects: vacation + 1/3, 13th salary, FGTS (the Severance Indemnity Fund) and notice pay based on the average.

Controversial situations

• Chargeback for cancellation or return: case law tends not to allow chargebacks outside insolvency.
• Cutting the commission percentage without agreement: a detrimental change (CLT, art. 468 — the CLT is Brazil's Consolidated Labor Laws) — see Salary reduction.
• Unattainable targets used to avoid paying commissions or as pressure — see Workplace bullying.
• Commissions paid off the books: see Off-the-books pay.
• Online sales from the physical store: if the salesperson took part in the sale, the commission may be owed, depending on the case.

How to check

1. Ask for the month's sales report.
2. Check the agreed percentage.
3. Check the paid weekly rest on commissions on your payslip — see Paid weekly rest.
4. Keep emails with targets and commission rules.

Frequently asked questions

Do commissions count toward vacation pay?

Yes, generally based on the average commissions for the last 12 months.

Can the employer deduct commission on a cancelled sale?

Under Law 3,207/1957, chargebacks are allowed on the buyer's insolvency; in other cases there is strong debate and a tendency to prohibit it.

Read more in this series

• Paid weekly rest (DSR)
• Off-the-books pay
• Lump-sum pay (salário complessivo)
• Profit sharing (PLR)
• Index: complete guide to labor rights