Brazil's eSocial Tax System Configured for 13th Month Bonuses

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By Jared Mondschein

Dec. 1—The Internal Revenue Service of Brazil has updated eSocial, the country's new digital system for the reporting of employee data, to process and collect the social taxes for the first of two mandatory Christmas bonus payments, a government news release said Nov. 23.

Brazilian labor law mandates that all employers pay all employees a Christmas bonus called the thirteenth monthly salary. Based on the average monthly remuneration given to employees in the preceding year, the payments should be delivered to employees in two payments, one by Nov. 30, and the other by Dec. 20.

The update to eSocial currently only allows the system to process and collect the social taxes of the first bonus payment, which must be paid by Dec. 7.

The processing and collection of taxes for the second bonus payment, which must be paid by Jan. 7, is still being finalized, the Internal Revenue Service said.

To contact the reporter on this story: Jared Mondschein at

To contact the editor responsible for this story: Michael Baer at

The government news release is available in Portuguese at

The official guide for using eSocial is available at

More information on payroll issues in Brazil can be found in the Brazil country primer.