Disclosure of the “Accident Prevention Factor” – FAP applicable to 2025

30/09/2024

In summary

Please be advised that, on September 30 2024, the Social Security Department website released on the Internet the new “Accident Prevention Factor” (“FAP”) rate for each company, which will have a direct impact on company’s payroll social contributions for the year 2025.FAP is a multiplication factor (that varies from 0,5 to 2,0 points) applied upon the tax rate of the “Labor Accident Contribution” (“SAT/RAT”) and it is calculated based on the frequency, level of importance and treatment cost of the labor sick leaves and labor accidents of each company.

Thus, in order to obtain the SAT rate for the year 2025, the taxpayers must multiply the SAT/RAT rate by the FAP released.

Example of calculation:

Company’s branch SAT = 3%
Company’s branch FAP = 1.5
SAT/RAT for 2021: SAT x FAP = 3 x 1.5 = 4.5%

Accordingly, the companies that present low incidence of labor illnesses and accidents (consequently, low FAP) may reduce their SAT/RAT tax rate (either 1%, 2% or 3%) down to 50% (fifty per cent), according to the security measures adopted by the company.

On the other hand, the legal entities that present high incidence of labor illnesses and accidents (consequently, high FAP), may suffer the increase of their SAT/RAT tax rate, up to 100% (a hundred per cent).

Recommendations

Therefore, we alert that each company should verify its FAP rate applicable to 2025 as well as verify and analyze the list (released with the FAP) of labor accidents and illnesses occurred during this period.

The consultation of the FAP applicable to 2025 is made through the link with access through the system “Gov.Br” with the company’s pin code or public key certificate.

In case the company disagrees with the data disclosed by the Social Security Ministry (in which was based the FAP calculation), the company will be allowed to file an administrative defense before the Social Security Administrative Court (CRPS) during the period of November 01 to November 30, 2024, through an electronic form available on the Social Security Department website on the Internet.

It is worth noting that the new Ordinance does not give suspensive effect de the defense, meaning that the company must pay the SAT/RAT with the FAP index made available and, if its defense is granted, it could recover the amount unduly paid.

Finally, we stress that the companies may also file judicial measures against the application of FAP as well as this new lack of suspensive effect.

This newsletter is only a general review of the subjects covered and does not constitute an opinion or legal advice.

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