
This is intended to explain to recruiters, friends and companies that I don't want to work as CLT - and how bad I think this model is.

Starting as the simple one, and for both samples I am using a salary of 10k BRL/month to be easy to calculate.

# *Pessoa Jurídica* (PJ) or contractor

The company pays 10k BRL. 

As a developer in Brazil providing services to US companies I don't need to pay ISS. So all the taxes I have is 7%.

```
7% of 10k BRL = 700 BRL
10k BRL - 7% = 9300 BRL
```

It means 9300 BRL comes to my pocket. 

I decide my retired plan.

I decide my health insurance.

I decide my benefits.

That is it. Simple like that.

Now the bad part:

# CLT - Labor Law

For all this I am using the values from [this tool](https://utilitarios.grupodpg.com.br/utilitarios/categoria/calculo-facil/775/custo-de-contratao-pj-x-clt-x-autnomo) - in portuguese.

The company pays the same 10k.

My salary officially would be 7.560 BRL.

8% would be FGTS = 604,80 BRL. *Fundo de garantia por tempo de serviço* (FGTS) or "Service time guarantee fund" it is a money that "does not earn interest", that I can access only to buy a house or during retirement.

9% is 13º salary = 680,40 BRL. No reason to receive a piece of my salary only in the end of year, also does not earn interest.

11,97% is vacations = 904,93 BRL. I need to pay each month to be able to take vacations, 30 days, max 3 intervals.

Company also pays 40% of all my FGTS in case I am fired by them (around 241,92 BRL). It is called *seguro desemprego* or unemployment insurance.

7% is INSS = 513,01 BRL. This is the retirement plan from the government. And it is not mine, in Brazil we pay for the ones retired. And our demographic window is not getting better.

14% is IRPF = 1.068,56 BRL. *Imposto de Renda Pessoa Física* or Personal Income Tax is tax. Simple like that.

So, in the end of month what I receive is 5.978,43 BRL. 60% of what company pays. Ok, you can argue that INSS/FGTS/13 Salary/vacations is something that I received, but there are several extra steps and it is delegated to the government to manage.

# Ok, what else?

Q: "oh, but I have other benefits in CLT like gym / health insurance". 
A: there is no magic. If company is paying extra, this money could come direct to my pocket.

Q: "how about exchange rate fluctuation?"
A: do you really think Brazilian real will behave better than any other currency? Just search on google things like `1 BRL in USD` / `1 BRL in EUR` / etc and check the graphic. 

Q: "but if something bad happen? e.g. accident, fired"
A: I prefer to contract the insurances myself. I do have my emergency reserve, and unlike the one from the government mine does earn interest.

# Which tool did I use? 

Basically [this one](https://utilitarios.grupodpg.com.br/utilitarios/categoria/calculo-facil/775/custo-de-contratao-pj-x-clt-x-autnomo). 

https://numbr.dev is also great to play with it real time and share.

# Conclusion

I don't like CLT. I don't want CLT. I don't see value to pass ownership of things to government. No reason to pay 27% of taxes if I can pay 7%.

To be clear, one FAANG / MANGA (Meta / Apple / Netflix / Google / Amazon) offered me to be CLT. MANGA is a dream for almost every developer, but I said no just because I don't see a point in CLT.

And if you (LATAM developer) that have the option to choose I really hope you decide by PJ/contractor.

CLT x PJ