PPR: how to implement a successful program to encourage your team

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Do you know what a PPR is and how to implement it in your company?

This new feature arrived in Brazil in the 1980s, through multinational companies, as part of the Human Resources policy .

Currently, companies that offer this type of program to their most qualified and high-performance employees are the most attractive. In this article, we will see what this program is, who can participate and what its objective is. Stay tuned!

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What is PPR?
PPR stands for Profit Sharing Program .

PPR is a strategy that companies use as a means of reward to recognize employees' commitment and contribution to the results of a business.

The program establishes target and performance indicators and transforms them into bonuses for employees when they are achieved, which may be financial or otherwise.

In addition to the financial bonus, the program may also include other benefits, such as development opportunities, recognition and flexible benefits.

What does the law say about PPR?
The program is provided for in the Federal Constitution, where it is established and described as follows in Article 1 of Law No. 10,101/2000:

“This Law regulates the participation of workers in the company’s profits or results as an instrument of integration between capital and labor and as an incentive to productivity (…)”.

In Article 2 of the same law, we find the two possibilities in which the PPR can be agreed between companies and employees, let's see:

“Profit sharing or results will be subject to negotiation between the company and its employees, through one of the procedures described below, chosen by the parties by mutual agreement:

I – joint committee chosen by the parties, also comprising a representative appointed by the union of the respective category;

II – collective convention or agreement.

The law requires the parties to write the rules of this agreement in a clear and objective manner, allowing the following criteria to be considered:

Company productivity , quality or profitability indexes ;
Programs of goals, results and deadlines, agreed upon in advance.