The Brazilian Supreme Federal Court (STF) will soon evaluate whether employee cost-sharing for transportation vouchers (vale-transporte) and meal/food allowances (auxílio-alimentação) should continue to be included in the calculation base for the employer’s social security contributions (Theme 1,415 / ARE 1.370.843). The upcoming judgment may signal a significant shift from the Court’s prior position under Theme 1,174, potentially opening the door to a meaningful reduction in payroll-related taxes for employers.
At the center of the debate is the legal nature of these employee copayments: should they be treated as “employment income,” with a compensatory/remunerative character, or as non-remunerative reimbursements meant solely to offset expenses? If the latter prevails, these amounts would no longer be subject to employer social security contributions.
Although the issue arises in the tax sphere, the labor implications are immediate. The definition of what does or does not constitute “remuneration” directly affects people management and creates four key points of attention:
1. How benefits are structured;
2. The design of internal compensation and HR policies;
3. The classification of payroll items and accounting treatment; and
4. The collective bargaining negotiations involving these benefits.
With the recognition of general repercussion, meaning the STF’s ruling will bind all lower courts, and the possibility of reversing the existing interpretation, companies now face an important opportunity to reassess their internal practices, including the design of benefits programs and the management of indirect compensation.
If the STF ultimately rules that these copayments should not trigger employer social security contributions, the financial impact may be substantial. The Court is expected to “modulate the effects” of its decision, limiting retroactive refunds to companies that had already filed lawsuits before the final ruling. For all other companies, the effects would be prospective only. This scenario underscores the need for preventive and coordinated action across tax, HR, and labor legal teams.
Given this context, companies are presented with a strategic window of opportunity. It is advisable to evaluate the financial impact of these copayments on payroll, consider the filing of protective legal measures to secure potential reimbursement rights, and review calculation criteria to ensure legal and accounting alignment with the standards that will ultimately be established by the STF.
