PIS is the acronym for social integration program, one tax contribution of character Social, which aims to finance the payment of unemployment insurance, allowances and participation in the revenue of agencies and entities, both for workers in public and private companies.
The PIS was established through Complementary Law nº 7/1970, which was intended for workers from private companies that were administered by the Consolidation of Labor Laws. PIS is administered by the Ministry of Finance and paid by Caixa Econômica Federal.
PIS has many similarities with COFINS, one of which is that there are two regimes: one cumulative and one non-cumulative. In the cumulative regime the rates are 0.65%, while in the non-cumulative regime they are 1.65%.
The PIS is also related to the PASEP (Program for the Formation of the Public Servant's Heritage) and often the acronyms appear together: PIS/PASEP.
In some situations, people enrolled in the PIS receive a salary bonus, which is equivalent to a current minimum wage. To receive, in addition to being registered, you must meet some other requirements.
See the meaning of PIS/PASEP.
