Brazil: Disclosure of the Accident Prevention Factor – Applicable to 2024

10 Oct 2023    2 minute read

In brief

Please be advised that, on 30 September 2023, 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 the company's payroll social contributions for the year 2024.

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In more detail

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), and it is calculated based on the frequency, level of importance, and treatment cost of the labor illnesses and labor accidents of each company.

In order to obtain the SAT rate for the year 2024, the taxpayers must multiply the SAT rate by the FAP released.

Example of calculation:

  • Company's branch SAT = 3%
  • Company's branch FAP = 1.5
  • SAT for 2024: 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 tax rate (either 1%, 2%, or 3%) down to 50% (fifty percent).

On the other hand, the legal entities that present high incidences of labor illnesses and accidents may suffer an increase in their SAT tax rate, up to 100% (a hundred percent).

Therefore, we alert that each company should verify its FAP rate applicable to 2024 as well as verify and analyze the list (released with the FAP) of labor accidents and illnesses that occurred during this period.

The consultation of the FAP applicable to 2024 is made through this link – in order to have access to its personal data on the website, the company enters into the "Gov.Br" login.

In addition, we also inform that the FAP rate will be individually calculated for each of the company's branches that have it on the CPNJ register.

In case the company disagrees with the data disclosed by the Social Security Ministry (which was based on the FAP calculation), the company will be allowed to file an administrative defense before the Department of Health Politics and Labor Security (Social Security Ministry Department) during the period of 01 November to 30 November 2023, through an electronic form available on the Social Security Department website on the Internet.

Finally, we stress that the companies may also challenge the application of FAP on the Judicial level, as well as the unduly increase of the SAT tax rate that occurred in 2009.

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Trench Rossi Watanabe, Sao Paulo
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