The purpose of this component is to describe how to calculate the company's profit or result sharing (PLR) with employees according to Brazilian laws.

In Brazil, employers must determine, together with their employees, the rules for profit or result sharing. The following principles must be included in the agreement, as well as mechanisms for verifying that the agreement was complied with:

• How often PLR should be distributed
• Term of the agreement
• Agreement revision period

The following basic criteria should also be considered:

• The company's productivity, quality, or profitability index
• Goals, results, and deadline programs

Profit or result sharing should not replace or complement the payment due to the employee by the company, and distribution should not take place for periods of less than one half-year. The amount paid is not considered for social security purposes nor is a percentage deposited in the Severance Premium Reserve Fund (FGTS) account. Income tax dues are deducted separately from monthly payment, but are included in the annual statement.