The financial management of a company involves various obligations, and one of the most important for partners who are active in the day-to-day operations of the business is the definition of pro-labore. This concept, often confused with salary, has its own rules and directly impacts the tax and social security structure of a company.

If you are a managing partner of a company or are planning to start a business, understanding what pro-labore is and how it should be drawn is essential to avoid tax issues and ensure efficient management.

What is Pro-Labore?

The pro-labore is the compensation that partners who act in the management of the company receive for the work they perform. The term, which comes from Latin and means “for the work”, refers to the amount that managing partners draw from the company as compensation for their efforts in managing the business.

Although it is similar to a salary, the pro-labore has fundamental differences, especially in how it is taxed.

Pro-Labore vs Salary: What is the Difference?

Many business owners confuse pro-labore with the salary paid to registered employees. The main difference lies in labor rights:

Thus, while a CLT employee has rights to paid vacation, 13th salary, and FGTS, the managing partner who receives pro-labore does not have these benefits, but can make social security contributions to ensure retirement.

Is Pro-Labore Mandatory?

Yes! Every partner who performs administrative functions in the company is required to draw pro-labore. According to Law 8.212/91, this compensation is considered the basis for collecting contributions to INSS, ensuring social security rights to the partner.

If the company decides not to pay pro-labore and only distribute profits to the partners, the Federal Revenue Service may interpret this practice as tax evasion, charging the due taxes and imposing penalties.

How to Define the Value of Pro-Labore?

The legislation does not establish a maximum value for pro-labore, only determining that it cannot be lower than the current minimum wage. In the case of 2025, the minimum value is R$ 1,518.00.

The recommendation for defining a fair value is:

• Analyze the market: See how much a hired professional would earn to carry out the same functions.

• Consider the company's structure: Pro-labore should be aligned with the company's financial capacity.

• Add a percentage on top of the equivalent salary: Generally, 20 to 30% more than a CLT salary to compensate for the absence of benefits like FGTS and 13th salary.

How is Pro-Labore Payment Made?

The safest way to make pro-labore payments is by bank transfer from the company's account to the partner's personal account. This ensures fiscal transparency and facilitates income verification.

Important: The payment of pro-labore must be made separately from the distribution of profits. That is, always perform two distinct transfers to avoid issues with the Federal Revenue Service.

Taxation on Pro-Labore

Unlike the distribution of profits, which is tax-exempt, pro-labore is subject to taxation. The main one is the social security contribution (INSS), mandatory for all partners who receive this compensation.

The taxation varies according to the company's tax regime:

• Simples Nacional: Retention of 11% INSS on the pro-labore amount. Companies in Annex IV must also collect 20% employer's INSS.

• Presumed Profit: Retention of 11% INSS + 20% social charges on the amount paid.

• Actual Profit: Same percentage as Presumed Profit, with deductions possible depending on the company's costs.

Pro-Labore vs Distribution of Profits

Another common question among business owners is about the difference between pro-labore and distribution of profits.

• The pro-labore is the compensation for the partner's work in the company and is subject to taxation.

• The distribution of profits is the amount received by the partner based on the company's profits and is tax-exempt, as long as it is duly recorded in the accounting.

Can I withdraw only profits and not pay pro-labore?

No. The managing partner must withdraw at least the minimum value of pro-labore before receiving any profit amounts. Otherwise, the Federal Revenue Service may consider that the company is trying to evade tax payments and assess taxes on the total withdrawn.

Conclusion

The pro-labore is one of the most important concepts for the financial organization of a company and the social security protection of partners. Besides being a legal requirement, it ensures that the entrepreneur has their contribution to INSS and avoids tax issues with the Federal Revenue Service.

If you need help calculating the ideal pro-labore for your company or want to ensure efficient accounting management, Beorange can assist you.

Contact our specialists and receive personalized consulting to better structure your business finances.

(Image suggestion: entrepreneur talking to a financial consultant, representing specialized support for pro-labore management)