Vale-Transporte

Brazil's mandatory transportation voucher ("transport voucher") that employers must provide to employees for their daily commute, with the employer covering costs exceeding 6% of the employee's base salary.

Benefits

Vale-transporte, meaning "transport voucher," is a mandatory Brazilian employee benefit that covers the cost of public transportation for commuting to and from work. Established by federal law in 1985, it applies to all CLT employees who use public transit for their daily commute.

How It Works

Employees declare their commuting route and transportation needs when hired. The employer then provides sufficient vouchers or credits to cover round-trip public transit costs for each working day. The employee contributes up to 6% of their base salary toward the cost, and the employer covers everything above that amount. For low-wage employees, the employer subsidy can be significant.

Modern Implementation

Physical paper vouchers have largely been replaced by electronic transit cards that are recharged monthly. The benefit must be used exclusively for public transportation — using vale-transporte for other purposes is grounds for termination for just cause. Employees who do not use public transit (for example, those who drive) can decline the benefit.

EOR Relevance

An EOR in Brazil manages vale-transporte by collecting commuting declarations, calculating the employer subsidy and employee deduction, and ensuring timely delivery of transit credits each month. This benefit is a legal requirement, and failure to provide it can result in labor fines and employee complaints.

Related Terms