Profit Sharing in Brazil - Differentiation And Disproportionality

The social security inspections are currently creating criteria absent of the Brazilian profit sharing law (n°10.101/2000) to criticize the plans of several companies, in alleging that the employees are earning differentiated amounts and their participation is not proportional to the annual compensation, as if these facts were prohibited and thus could refute the participation negotiated between company, employees and Trade Unions.

Besides the fact that these inspector's allegations are not provided by law, it must be said that it is perfectly normal that a company, in its profit sharing plan, divides the employees into homogeneous groups, in accordance with the activities performed, seniority, and/or responsibility.