At this time of Mother’s Day, how about reflecting, as a business owner, on the importance of this benefit for women?
By Marcelo Musial, Partner at MCS Markup, a full-service advisory and business management firm.
In recent years, the Empresa Cidadã Program, which grants an additional 2 months of maternity leave (extending the period from 4 to 6 months), has stood out as a valuable initiative for promoting the well-being of Brazilian workers while simultaneously offering significant tax benefits to participating companies. However, it is surprising to note that uptake of the program remains low, with approximately 22,000 companies enrolled. This may be because the Income Tax benefits are only serving larger companies, leaving out the vast majority of businesses operating under the Simples Nacional or Presumed Profit regimes, which together account for more than 80% of employment in the country.
Another reason for this hesitation may lie in the difficulty companies face in finding qualified personnel to replace workers during the maternity leave period. This challenge is even more pressing in sectors where demand for specific skills is high, making it difficult to release employees during this crucial period.
Furthermore, we cannot ignore the still difficult reality faced by women in the labor market. Despite advances in gender equality policies, there remains a hidden difficulty of employability for women at this stage of life. Some studies report that up to 40% of female professionals have felt discriminated against in a selection process for wishing to become a mother.
At this time of Mother’s Day, how about reflecting, as a business owner, on the importance of this benefit for women? For larger companies, this should not be an obstacle. It is practically cost-free. And in times of Tax Reform, should we not be seeking to extend the tax benefits of the Program even further?
By adhering to the Empresa Cidadã Program, the company not only enjoys tax benefits, such as the deduction of maternity salary from Income Tax and exemption from INSS contributions on maternity salary, but also demonstrates a genuine commitment to the well-being of its employees and to the promotion of equal opportunities in the workplace.
By overcoming the challenges and considering the long-term benefits, companies can not only strengthen their market position, but also contribute to a more just and inclusive society for all women.
About MCS Markup
Founded in 2014, MCS Markup is a 100% Brazilian, full-service advisory and business management firm operating to international standards, committed to simplifying processes and driving transformation and innovation for clients in a personalized manner. It is a member of the renowned PrimeGlobal, an Association of Advisory and Accounting Firms present in more than 112 countries around the world. In 2023, it was recognized by Leaders League Brazil as one of the best firms in the Transaction Services and External Audit categories. In Transaction Services, the recognition was awarded for the third consecutive year, highlighting the excellence of its due diligence services.
