CLT X PJ: which is the best hiring model?

CLT X PJ: which is the best type of work? As a rule, knowing which is the best form of hiring depends on the needs of each worker. See the advantages of each one and clear up your doubts.

In some cases, employees and employers face a dilemma regarding the most appropriate hiring regime for each case. 

There are companies that adopt a certain hiring standard and there is nothing to discuss, but in others, it is possible to check which is more worthwhile for the employee and choose the model. 

First of all, we need to make it clear that there is no rule to define which model is best — CLT or PJ. 

Several variables can influence this decision and its direction. Some factors include future goals, stability, growth potential, career plan, etc. 

In other words, the first thing to do is to outline your profile by answering some of these questions. Once you do this, the characteristics of each regime become clearer within your objectives. 

Then, it is important to correctly understand the concepts of the two hiring models. 

Continue reading the article and find out more.

CLT X PJ: differences

The main difference between the models is that under the CLT regime you have a series of benefits and a signed employment contract, which is more stable, however, you will have a lower net salary.

In the PJ regime, the net salary is higher, however, it is up to you to pay for benefits, such as transportation vouchers and meal vouchers. 

Working as a Legal Entity (PJ) is not just your choice.

You can open a CNPJ of your own free will, but the company is the one who chooses the admission model, in some cases, it is up to you to choose.

At this point you may be wondering why hire service providers instead of employees, the answer is very simple. 

The taxes and bureaucracy of a company for hiring with a formal contract can be double the work of the employee, which is why the payment is often lower when hiring under CLT. 

When hiring a company for a company, the PJ, the contractor has a large reduction in tax expenses, which directly influences how much he can pay.

Understand the concepts

CLT: Consolidation of Labor Laws

1. Hiring 

In the CLT model, registration in the work card marks the beginning of the relationship between the company and the employee.

In this case, you are an employee with rights guaranteed by law, but the same laws also allow the employer to have means of controlling the subordinate during working hours. 

2. Stability 

Every employee has labor rights guaranteed by the Consolidation of Labor Laws.

These include paid vacations, 13th salary, FGTS, unemployment insurance, among others. However, some of these benefits are deducted directly from the salary. 

3. CLT Regime 

A flexible work routine is not a reality for those hired under this modality. Under the CLT regime, the working hours stipulated by law are 8 hours per day and 44 hours per week, with breaks and days off. 

4. Responsibilities of the CLT 

The rights guaranteed by the CLT are collected directly from the paycheck. These deductions serve precisely to cover the government's expenses with the guarantees offered. 

5. Main rights of workers under the CLT regime 

• Signed work card
• Paid vacation 
• Additional for overtime 
• Maternity leave 
• Unemployment insurance if you are fired
• FGTS
• INSS 
• 13th salary 
• Working hours of up to 44 hours per week 

PJ: Legal entity

1. Hiring a legal entity 

The service provision contract dictates the rules.

Here you are a service provider and the rule is: there cannot be the elements that characterize an employment relationship: subordination, personal nature, habitualness and onerous nature.

2. Flexibility 

In the PJ model, only what was defined in the contract must be complied with.

In other words, you need to pay attention to the conditions established in the document, as it will define how flexible the routine will be.

Being a service provider is a good option for those who want to define their own hours and work environment.

3. Responsibilities 

The service provider is responsible for your retirement and any other guarantees. In addition to having to open a company, issue an invoice, pay taxes and hire an accountant.

After all, you will be acting as a company providing a service to another.

4. Legalization 

You will be a company that provides services to another, that is, you will not become part of the staff. 

This means that its performance is like that of any other company, with all the rights and duties of the category. 

You will need to open a company, pay taxes as a company, and you will not have fixed benefits like FGTS, vacations, health insurance, among others. 

5. PJ Rights 

The rights of the PJ are: 

• Social security benefits (maternity allowance, retirement, etc.) 
• Issuing an invoice 
• Hiring an employee at the minimum wage for the category 

CLT X PJ: Advantages of each category

CLT 

• Paid weekly rest; 
• Paid annual leave with one third more than the salary; 
• Thirteenth salary;
• FGTS (Guarantee Fund for Length of Service); 
• Unemployment insurance and compensation in case of unfair dismissal; 
• Maternity and paternity leave;
• Additional for unhealthy or dangerous activities; 
• Assistance for children and dependents up to five years of age in daycare centers and preschools. 

PJ

The main advantage of being an individual contractor is saving on taxes and, consequently, earning more money. 

Service providers also need to pay taxes and the amounts vary according to the classifications defined in the company opening process, such as size and revenue. 

Check out other advantages: 

• Possibility of issuing an invoice; 
• Allow different payment methods to customers; 
• Greater control over schedules, achieving a better balance between personal and professional life; 
• There are no labor discounts; 
• Allows you to serve more than one customer simultaneously, increasing income.

Conclusion 

If you choose to work for a CLT, make sure you are in a company that guarantees your growth. With a CLT, you can enjoy the peace of mind of being free from certain obligations. After all, when you are an employee, you don't have to worry about taxes, prospecting, defaulting on payments, etc. 

You can just focus on doing a good job, but because you often have to commute and work longer shifts, your day can be shorter. 

If you decide to become a legal entity, you will benefit from the benefits of offering your services. You will be more credible to your clients by carrying out a legal activity, while having greater control over your professional life and being able to increase your income. 

This also happens because companies are increasingly hiring legal entities for specific and specialized services. 

Ultimately, the best thing to do is to do some research and analyze your options. Decide which model is most worthwhile. At this point, it is worth talking to professionals who follow these models to get some guidance.

Take advantage and also read: “Home Office Work: How does it work? [The Remote Work Guide]

Nathalia Silva December 28, 2021