TEMPORARY ASSIGNMENT: It is a non-definitive transfer, where the worker moves to another country and remains linked to the Social Security of his origin.

This temporary assignment certification is only allowed for countries that have an International Social Security Agreement with each other (learn more about international agreements in the material previously sent #06-2022).

The purpose of the temporary assignment certificate is to avoid the double payment of social security – in the country of origin and destination.

Thus, social security charges are paid only once, it means, in the worker’s country of origin.

The temporary assignment certificate can be issued valid for up to 5 years, renewable for another 3 years.

The expatriate who has this certificate, will not suffer the INSS withholding over their income on the payroll. This exemption from the payment of the social security contribution extends to the contribution made by the company too.

This exemption is valid both for expatriates who are registered in Brazil as employees and for those who have a management position in the company (pro labore).

Comparative example:

Let’s consider an employee who has a monthly salary of R$15,000.00 in a service company, in “CASE A” being a Brazilian worker and in “CASO B” an expatriate who has a temporary assignment certificate.

CASE A

Brazilian:

INSS withholding on salary: BRL 828.38

INSS company’s side (20%): BRL 3,000.00

Third-party INSS (5.8%): BRL 870.00

Adjusted INSS FP (2%): BRL 300.00

Total company charges BRL 4,170.00

CASE B

Expatriate with temporary assignment certificate:

INSS withholding on salary: BRL 0.00

INSS company’s side (20%): BRL 0.00

Third-party INSS (5.8%): BRL 0.00

Adjusted INSS FP (2%): BRL 0.00

Total company charges BRL 0.00

It is worth noting that despite all the social security exemption presented above, all other labor rights to this expatriate must be guaranteed, such as vacation, 13th annual salary, FGTS and other severance pay in a possible contractual termination (in case of CLT employee).

Currently, Brazil has an international social security agreement signed between several countries, including Japan.