The Presidency of Brazil sanctioned, without vetoes, the Law # 13,419/2017 that establishes how bars, restaurants, hotels, motels and similar establishments shall account the gratuities.

The gratuity was defined not only as the amount paid spontaneously by the customer but also the amounts charged by the company, as an additional service, which remains optional to the consumer. According to the legislation, the gratuities shall be distributed among the employees, in accordance with the labor union criteria. Companies with more than 60 employees shall have an employees’ commission to inspect the compliance and the distribution of the gratuities.

Employers can withhold a portion of the gratuity revenues in order to pay the social security and labor charges that goes as from 20% up to 33%, depending on the corporate taxation regime. Additionally, the employer shall register the gratuity percentage and the average paid over the last 12 months in employees’ work booklet. If the company decides to no longer charge the gratuities, but used to in the last 12 months, this amount shall be incorporated in the salary and its calculation will be based on the average of that period.

As a penalty for any non-compliance, the company will have to compensate the employee that was jeopardized in the total amount of 1/30 of the average gratuity per day of delay, limited to the wage floor of the category. Also, it may be tripled in case of recurrence.

Throughout his specialized team, RSM follows the tax, labor and social security legislative changes, and is at disposal to support your Clients in the arduous task of being in compliance with the legislation in force.

For more information, contact us: 

Marcelo Sampaio  - marcelo.sampaio@rsmbrasil.com.br
Partner - Head of Tax  

Leonardo Biar - leonardo.biar@rsmbrasil.com.br
Head of Labor & Social Security Services