Supreme Court rules on the unconstitutionality of the levy of social security contribution upon “maternity leave” wages

On yesterday’s judgment (08.04.2020), by majority vote, the Brazilian Supreme Court (STF) ruled on the Extraordinary Appeal 567,967 – leading case – an important tax thesis by recognizing the unconstitutionality of the levy of social security contributions upon payments made as maternity leave wages, as provided in art. 28, §2 and §9, “a”, of Law 8,212/91.

According to the vote of the rapporteur judge Roberto Barroso, the maternity leave wage does not constitute payment/compensation as result from labor work, besides creating discriminatory practice by discouraging the hiring of women in the job market, which is prohibited by our Federal Constitution.

Although the STF’s decision is still subject to appeal by the Federal Union, this precedent was judged by the system of the so-called “general repercussion”, which means that the current precedent favorable to taxpayers will serve as guidance to other Courts (judicial and administrative) and lower levels ruling on the matter.