The arrival of a child is a unique and unforgettable moment that deserves to be experienced with full attention and quality time. But did you know there’s a program that can significantly extend maternity and paternity leave, benefiting not only families but also companies?
This is the Citizen Company Program.
What is the Citizen Company Program?
The Citizen Company Program is a benefit established by law for companies that join it. It allows maternity leave to be extended from 120 to 180 days and paternity leave from 5 to 20 days. It’s an opportunity for parents to have more time to care for their newborns, which also applies in cases of adoption.
What about those who do not participate? If the company does not participate in this program, the leave period follows the standard CLT rules, which are 120 days for mothers and only 5 days for fathers. In other words, without joining, there is no right to an extension.
Benefits for the Company
Participating in the Citizen Company Program is not just a gesture of social responsibility, but also a smart strategy for companies:
- Strengthens the brand image as socially responsible.
- Helps retain talent, reduce turnover, and improve the organizational climate.
- Offers an important tax incentive: participating companies can deduct from Income Tax the compensation paid during the extension period, which effectively reduces the cost.
Advantages According to the Tax Regime:
Tax benefits vary depending on your company’s tax regime:
- Real Profit (Lucro Real): May fully deduct from Corporate Income Tax (IRPJ) the amount paid during the extension, reducing the tax burden.
- Presumed Profit (Lucro Presumido): No direct tax deduction, but joining strengthens reputation and helps attract talent.
- Simples Nacional: Also no deduction, but benefits from greater employee engagement and market differentiation.
How to Join and Apply
Joining the Citizen Company Program is simple:
- Company enrollment is done on the Federal Revenue Service website.
- For female employees, the extension will be guaranteed if they request it up to the end of the first month after childbirth.
- For male employees, they must apply within 2 (two) business days after childbirth and prove participation in a program or activity on responsible fatherhood.
The Citizen Company Program offers more time to care and more benefits for everyone. Get informed and take advantage of this opportunity!