Established in 2008, the Citizen Company is a government program that extends maternity leave for 60 days. In 2016, the benefit was also extended to the paternity leave, what get 15 more days. Adherence to the program is optional, but it generates several benefits for both employees and enterprises, such as tax incentives.
Despite this, according to the Federal Revenue Service, only 10% of the companies that can join the program were registered in 2016. To avoid you being left out of this, we have gathered in this post everything you need to know to understand the project’s operation what are its advantages. Are you interested? Check it out below!
How does the Citizen Company work?
Employees of companies participating in the program receive an additional 60 days of maternity leave. As a result, instead of the 120-day break provided for by law, the employee is authorized to interrupt her activities for 180 days. Paternity leave is extended by 15 days beyond the mandatory five, totaling a 20-day break.
During leave, the employee is entitled to receive his salary in full. However, the person cannot carry out any other paid activity in that period. Keeping the child in a daycare center while enjoying the benefit is also prohibited by law.
To have the benefit it is necessary to request the extension of the license for the company up to 30 days after the birth of the child. The program rules also apply to adoptions, depending on the child’s age. Check out how it works in each case:
- children up to 1 year of age: 60 days;
- children from 1 to 4 years old: 30 days;
- children from 4 to 8 years old: 15 days.
Adherence to the program is optional and includes organizations that are taxed on taxable income. Companies that declare taxes on presumed profits or that are integrated with Simples Nacional are not entitled to participate. Registration is done through e-CAC (Virtual Taxpayer Service Center), using a valid access code or digital certificate.
What are the benefits of joining the program?
One of the biggest advantages of joining the Citizen Company is the tax incentives granted by the government. Organizations participating in the program can deduct from federal taxes the total remuneration of the employee with extended leave. In addition, it is also possible to deduct from the Income Tax (IR) the two extra wages paid during the break.
It is worth mentioning that these benefits are only valid for organizations with taxation on real profits. Companies that calculate the IR on the presumed profit or are part of Simples Nacional may also offer more days of leave to employees, but will have to bear the costs of this on their own.
Companies that do not authorize their employees to take 180 days of maternity leave lose the right to participate in bidding. In order to be involved in any competition for the provision of services to public authorities, the organization must prove that it benefits from this benefit, whether or not enrolled in the Citizen Company.
Therefore, if the company chooses to extend the licenses, the best option is togive to the program to take advantage of the tax rebate benefit.
By extending maternity leave, the company allows the employee to spend more time with her newborn child in the first months of life. For parents, although the leave is shorter, 15 more days make all the difference in adapting to the new routine.
The benefits for employees, especially mothers, are excellent. One is to be able to breastfeed the child exclusively with breast milk for six months, which strengthens the baby’s immune system and, in general, reduces health spending and infant mortality rates in the country. Staying at home longer also strengthens the affective bond with the little one.
Therefore, joining the Citizen Company means offering more quality of life to employees. Certainly, they will know how to value this attitude and will be proud to be in a place that cares about the well-being of the team. With that, they will return to work more motivated and engaged with the purposes of the organization.
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How can HR organize itself to adapt to the program?
The Citizen Company has a considerable impact on HR activities. In addition to all routine tasks in the area, the team needs to fit the various variables that involve the program into its scope of work. Know some examples.
Examples of variables
- Are the company data in the program register correct?
- Which employees want to use the benefit?
- Are the deadlines for requesting licenses being met?
- Is the payment of the full remuneration being respected?
- How will the IR tax rebate be calculated?
In order to deal with all of this efficiently, it is essential that the department is well organized to receive these demands. Defining a team member to centralize license-related activities can be a good solution. This will prevent mismatched information, which could cause operational errors.
Another key measure to accurately control these processes is to implement good HR software in the department. In this type of technology, all information about employees is gathered on a single platform, including data on maternity and paternity leave.
With this, any employee will be able to request the benefit easily and quickly. On the HR side, searching and accessing information becomes much simpler. In addition, calculations of payments and discounts for work breaks are done automatically, which reduces the error rate and reduces the volume of operational tasks in the sector.
We have reached the end of our guide on how the Citizen Company works! Now that you know everything about the program and its benefits, just put into practice what you have learned here. After all, the tax incentives offered by the government can represent a great advantage in paying taxes. In addition, the gains in engagement, quality of life and talent retention are incalculable!
Did you like the post? If you have any questions or would like to know more about HR management, please contact us! It will be a pleasure to help you in whatever you need!