What does the acronym PLR mean in job openings?

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What does the acronym PLR mean in job openings?

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PLR means Participation in profits and results of a company. It is very likely that you have already encountered this benefit in a job opening!

It is a remuneration model that is based on the division of the profits of an organization with its employees, but no must be confused with salary. This means that employees are entitled to receive an extra amount if they achieve specific goals.

Is it advantageous to offer PLR in the company? And for employees, what does this imply? In this post, we will show:

  • Who is entitled to PLR;
  • What the law says about it;
  • How PLR payment works.

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What is PLR?

This benefit called Participation in profits and results it implies extra remuneration, the value and frequency of which depends on the company's financial results.

Not all organizations give this type of program, but be aware that when adopting it, the company needs to offer it to everyone, without distinction. What is not fixed is the value of the bonus, which varies according to the position, productivity and the goals achieved by the worker.

Therefore, the benefit PLR it is not an obligation nor has a definite value.

One of the advantages of adopting PLR in the company is to offer an extra incentive to its employees. Considering that it is a variable remuneration, it can happen both monthly and annually. Therefore, it is essential that the employer align expectations with their employees.

In the next topic, you will understand what the legislation says about the subject and the detailed operation of the program!

What does the law say about it?

At PLR rules are described in Law No. 10,101, which says the following:

The instruments resulting from the negotiation must contain clear and objective rules regarding the establishment of the substantive rights of participation and the adjective rules, including mechanisms for checking the information relevant to the fulfillment of the agreement, frequency of distribution, period of validity and deadlines for reviewing the agreement, the following criteria and conditions can be considered, among others:

I – productivity, quality or profitability indexes of the company;

II – programs of goals, results and deadlines, previously agreed.

This means that bonus of PLR only happens when the employee reaches a specific result or some minimum productivity index. Therefore, it is an interesting strategy for companies that seek to encourage their employees to achieve goals.

Another advantage for companies is that there is no payment of labor charges on PLR. However, taxation remains for the worker, ranging from 7.5% to 27.5%.

But in practice, how does the PLR payment? What do companies need to establish?

Planning the company to offer PLR

Each organization is free to decide on the PLR operation, as long as it follows the law and there is a clear and transparent negotiation with employees.

There are basically 2 ways. The first is to establish goals to be achieved collectively until the end of the year. The final result is divided into percentages for each person. If the goal is not achieved, no one receives the bonus.

Another path is the creation of individual goals according to the function performed. Here, managers monitor indicators to measure the performance of each employee.

Stay tuned because there are exceptions to the receipt of PLR:

  • only registered employees receive PLR. Public servants are not entitled to the benefit;
  • in case of resignation, the worker may receive the benefit proportionately, following the months worked;
  • in the event of absence due to accident, illness or maternity leave, the employee does not receive PLR ​​either. This is because it is understood that he did not contribute to the company's profits.

Another warning is that the PLR ​​can be cut or suspended if the goals are not achieved. As it is related to the profitability of the company, if there is no profit there is nothing to pay.

Finally, the law does not establish a fixed date for the payment of PLR. The only convention is that the amount is paid in more than two installments.

In short, companies are not required to pay PLR and there are specific cases where it can be canceled.

Is it worth including PLR in the payroll?

As we have already said, one of the main PLR advantages It's encourage employees without having to pay extra labor charges.

If the professional knows how the program works, he / she will have one more option to increase income. In this sense, PLR also contributes to the strengthening of the organizational culture.

But it is important to consider the negative points as well. It is up to leaders and managers to assess whether the program really makes sense for their business model.

PLR can foster a climate of rivalry within the work environment, in addition to stimulating work overload. So it is necessary to ensure that employees are rewarded in the short term, whether with praise, courses, training and other types of awards.

Remember that the worker needs to see the results of his dedication throughout the year! Only in this way can companies maintain motivation, engagement and productivity at a healthy level.

Offer a training program Participation in profits and results yes, you can bring several advantages to your company, such as:

  • increase employee motivation;
  • raise overall business results;
  • greater interest in the development of the employee as a professional;
  • strengthening the bond between company and employee;
  • greater commitment to achieving goals;
  • improvement in talent retention and attraction;
  • amounts exempt from labor charges.

PLR can adjust to your organization's strategies and needs. Therefore, it is essential to carefully evaluate your business model, expectations, employee profile and laws involved.

Now that you know what does PLR mean, you can judge if it's worth it! Whether as a benefit to be offered in the company or when determining if that job vacancy is compatible with your profile.

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