Brazil: eSocial – Opportunities and Hurdles

eSocial is a platform that companies have to use to submit employee information to the fiscal authorities. By using a common platform the submission requirement should be unified and simplified. Companies should profit from the saving of time and money by using the platform.


Who is challenged by eSocial?

The creation of the eSocial report can be challenging for some businesses. For example, the introduction of the new system will be particularly complex for building companies with an increased risk for accidents, companies with numerous service providers in different plants as well as businesses with high fluctuations of employees.

These companies are advised to attentively follow regulatory changes in order to avoid  sanctions by the authorities.


Changes through eSocial

In practice, the first change is the unification of data submission because previously, these information have been issued to different institutions by different tools. The improved usability and agility of the process helps companies save time and money. At the same time, the availability of all these information improves the authority`s control mechanisms. Consequently, certain departments of the company will gain more responsibility in providing the adequate information such as the departments of finance, bookkeeping, law, work security and HR.


Mandatory Requirements

Companies need to be aware of the different duties that are now being unified. Those include:

  • GFIP
  • RAIS
  • CAT
  • The employee registration book
  • documentation of employee terminations
  • PPP – profile of professional social security insurance
  • DIRF
  • DCTF
  • salary statement
  • GPS
  • GRF

In order to get acquainted with the eSocial instrument, companies may need to rearrange and clearly define their processes. This includes well thought-through work instructions so that no deadline is missed and no information goes missing.

Moreover, it is important for companies to define which specialist is responsible for which sector and that the communication between the respective departments is well-functioning.



The new requirements are challenging in terms of compliance and economic feasibility. However, with the support of a local expert they can be used to your advantage and help increase productivity and efficiency in your business.


These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!