Brazil Boosts Formal Domestic Work Allowing Tax Deduction

Brazzil Magazine covers

In comments about the provisional measure (Medida Provisória, MP) that establishes incentives for the formalization of domestic work, Brazilian Minister Nilcéa Freire, special secretary of Policies for Women, said that the government is attempting to reduce informality in this area.

Domestic work is one of the sectors with the largest contingent of female workers in Brazil and in which employment is the least secure. Brazil has 6.5 million domestic workers, 4.8 million of whom belong to the informal economy.

According to the Minister, by allowing taxpayers to discount the annual sum they contribute to Social Security on behalf of their employees – equivalent to 12% of employees’ salaries -, the government is telling society that it is willing to share this burden, which represents the cost of citizenship and social justice.

The discount, which for each taxpayer will be limited to the contribution for a single domestic worker who earns the minimum wage, will not be lumped together with other deductions, such as educational and medical expenses and allowances for dependents. Instead, it will be subtracted at the end from the amount of tax owed.

According to the secretary of Social Security, Helmut Schwarzer, with this measure the federal government initially expects to remove 1.12 million domestic workers from the informal economy.

ABr

Tags:

You May Also Like

Brazzil Magazine covers

New York’s Brazilian Weekend

Central Park’s Summerstage, in New York City, had the colors of Brazil this year. ...

Brazzil Magazine covers

Those Intrepid Brazilian Jews! They Started the NY Jewish Community in 1654

If one were to ask most Americans to describe the images and ethnic qualities ...

Brazzil Magazine covers

Brazil Arrests American Charged with Pedophilia in Copacabana

The little Brazilian boy, 9, told his classmate what the old man had done ...

Brazzil Magazine covers

Brazil Wants Bigger Role for Emerging Nations in Internet’s Management

Egypt has just hosted the 33rd meeting of the Internet Corporation for Assigned Names ...

Brazzil Magazine covers

Brazil Releases 3,000 Plant Species Names to Prevent Biopiracy

In commemoration of World Biodiversity Day, which happened Monday, May 22, the Brazilian government ...

Brazzil Magazine covers

Brazil’s Development Bank Has Loaned Close to US$ 50 Billion This Year, a Record

The BNDES, Brazil's National Bank for Economic and Social Development, announced that it disbursed ...