to work is a latin expression and means "for the job", currently used in Portuguese to refer to the monthly remuneration of the partner or owner of a company.
The pro-labore (Portuguese spelling) is a kind of “salary” that the members of a company's society receive on a monthly basis.
As the entrepreneur-partners of the companies do not have a "boss" who sets a fixed remuneration, the pro-labore is a calculation that determines the appropriate payment amount according to the work that exercise.
For this, the value of the pro-labore is determined based on the average salary in the market. But, unlike what happens with wages, pro labore is not covered by labor guarantees defined in Brazilian legislation, such as the 13th salary, contribution to the FGTS or the payment of vacations, by example.
However, the pro labore is required to deduct 11% of the total amount to the INSS (National Social Security Institute), as it represents an administrative expense.
Learn more about meaning of INSS.
Distribution of profits and to work
In addition to pro labore, the partners of a company can also opt for the distribution of profits as a form of remuneration.
In this case, the total amount, after payment of Corporate Income Tax, is divided among the partners as defined in the Articles of Incorporation.
It is noteworthy that the to work and profit sharing are two distinct processes and should not be correlated.
Normally, the pro labore is intended for the remuneration of partners who perform daily administrative activities in the company. The distribution of profits, on the other hand, is made among the partners who contribute to the financial capital that guarantees the company's operation, but who do not participate in the ordinary administrative functions.
See also: O meaning of the expression pro bono.