Rebeca Duran

Rebeca Duran

Staff Writer
The Brazil Business


Introduction to Sistema S

Rebeca Duran

Rebeca Duran

Staff Writer
The Brazil Business


System S is a joint system of social contributions paid by companies in order to finance the Autonomous Social Services. This article will outline the main aspects of this system and the contributions comprised by it.

Autonomous Social Services

Professional training is a type of education that prepares people for the world of business and labor. In order to assist the qualification and training of employees, business owners had come together to create the S System. The system is a joining of parastatal institutions without lucrative purposes that received legal authorization from the Brazilian Government to collect mandatory contributions for the development and maintenance of the Autonomous Social Services:

  • Serviço Nacional de Aprendizagem Rural or National Service of Rural Apprenticeship (SENAR)
  • Serviço Nacional de Aprendizagem do Comércio or National Service of Trade Apprenticeship (SENAC)
  • Serviço Social do Comércio or National Trade Social Service (SESC)
  • Serviço Nacional de Aprendizagem do Cooperativismo or National Service of Cooperativism Apprenticeship (SESCOOP)
  • Serviço Nacional de Aprendizagem Industrial or National Service of Industrial Apprenticeship (SENAI)
  • Serviço Social da Indústria or Industry Social Service (SESI)
  • Serviço Social do Transporte or Social Service of Transportation (SEST)
  • Serviço Nacional de Aprendizado dos Transportes or National Service of Transportation Apprenticeship (SENAT)
  • Serviço Brasileiro de Apoio às Micro e Pequenas Empresas or Brazilian Service of Micro and Small Size Companies Support (SEBRAE).

Created by productive sectors (in industry, commerce, agriculture, transport and cooperatives), the System S offers free courses in key areas of industry and commerce, in addition to offering a network of schools, laboratories and technology centers throughout the country. The system also offers paid courses, usually with more affordable prices than those offered by private schools.

Contribution to SENAR

All companies that perform agribusiness, agricultural, trade unions, employers' federations and rural confederations activities are subjected to the SENAR contribution, which levies a 2.5% rate over the total amount of remuneration paid by companies to their employees. The contribution is paid for the organization, administration and implementation of education, professional rural training and social development of rural workers.

Contribution to SENAC

Operating in more than 3000 Brazilian municipalities with the promotion of practical training and specialization courses, SENAC is a government institution that provides professional education focused on the trade of goods, services and tourism. SENAC contribution levies a 1% rate on the total value of the employees remuneration of all businesses coordinated by the Federal Confederation of Trade.

Contribution to SESC

All companies that are taxpayers of SENAC plus telecommunication, sports, educational, artistic and cultural companies are also taxpayers of the SESC contribution. The contribution is a 1.5% levy on the total monthly remuneration amount paid by companies to their employees, in order to finance programs that contribute to the welfare of employees and their families, the planning and execution of measures to contribute to the welfare of salesmen, and their families and educational and cultural activities.

Contribution to SESCOOP

In order to organize, administrate and execute the education of professional formation and social development and the promotion of workers of cooperatives, the SESCOOP contribution must be paid by Brazilian cooperatives at a 2.5% rate over the remuneration amount paid to all employees working in a cooperative.

Contribution to SENAI

The main goal of the SENAI institution is to support industrial areas through the training of human resources and the provision of technical and technological services. For that, telecommunication and fishing companies, as well as the ones included in the National Confederation of Industry, must pay a 1% rate to the SENAI contribution, which charges over the total employees remuneration paid by companies.

Contribution to SESI

Telecommunication and fishing companies, as well as, the ones included in the National Confederation of Industry must pay at 1.5% rate charged over the total employees remuneration paid by companies. The contribution finances the organization and administration of industry apprenticeship schools of the transportation and telecommunication industries, and for the improvement of habitation, nutrition and hygiene conditions. It also finances work assistance, educational and cultural activities and human appreciation.

Contribution to SEST and SENAT

Contribution SEST together with SENAT have as a main function the management, development and implementation of programs for Brazilian transportation system improvements. Both are levied together at a 2.5% rate, being 1.0% equivalent to SEST and the other 1.5% to SENAT. Road transport companies, transport companies of valuables, oil distributor companies and car rental companies are the contributors of SEST and SENAT.

Contribution to SEBRAE

Sebrae is an institution that supports the development of small and micro companies in Brazil. Private or public legal entities are taxpayers of Sebrae, which is charged at an additional rate of 3% over the social contributions.