Allowance for omissions

Allowance for omissions - ought to whom, in his work, has to deal with cash - is not considered as paid employment income, when it does not exceed 5% of the fixed monthly remuneration.

Meaning, the allowance for omissions paid to a worker dealing with cash, up to the amount equivalent to 5% of his fixed monthly remuneration, is exempted from IRS (personal income tax).

Article 2º, nr.3, c) CIRS

The allowance for omissions, up to the limit above referred, is also exempted from discounts and contributions for Social Security.

The allowance for omissions must be paid only 11 months per year, accordingly to effective work period.

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Personal Income Tax Code

This note is only for information and does not hold its divulgers responsible. For thorough information you must consult the Law.