Formal or informal work? Know benefits and disadvantages

trabalho formal ou informal


Many people wonder if it is more worth having a formal or informal work. It is possible that you have also raised this doubt. In this post, we will clarify the difference that exists between the two forms of work and also the advantages and disadvantages of each one.

What is the difference between formal and informal work?

The basic difference between formal and informal work is that formal work has an employment contract and registration in the Professional Card. It follows certain rules in accordance with the Consolidation of Labor Laws (CLT).

Informal work, on the other hand, as its name implies, has no formalities, that is, it does not have a formal license and neither has a contract.

Discover the benefits of working formally or informally

Those who work informally do not have salary discounts, but also have no guarantees and cannot count on the INSS for illness, for example. Those who work formally have these guarantees, in addition to FGTS, holidays and the right to 13th wages. Check below for more details on the advantages and disadvantages of each modality.

Advantages of formal work

One of the main advantages of formal work is being able to count on the protection of labor laws such as sickness benefit, maternity salary, FGTS, vacation, 13th salary, retirement, unemployment insurance, among others.

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In addition, companies often guarantee their employees important benefits such as food and transportation assistance, health insurance, dental insurance, among others.

Another advantage of formal work is financial stability. When you are employed by a company you can count on your salary every month.

Formal work also usually has a fixed working time, which you can consider as an advantage or disadvantage depending on your professional profile.

Advantages of informal work

In informal work, the professional does not have discounts on his salary. That is, he receives the full amount agreed for the service. There is no income tax or social security discount, for example.

In addition, the informal worker usually has more freedom of hours and flexibility. Informal work is also an alternative for people who are unemployed to earn some income without depending on job creation in companies.

What are the disadvantages of being an informal worker?

The main disadvantages of working informally are financial instability and the absence of guarantees provided for in the CLT.

This is because, in this modality, the professional does not have a guaranteed monthly salary. In addition, he is not supported by labor laws. That is, you are not entitled to FGTS, vacation and 13th salary. In addition, if you do not regularly make your contribution as a self-employed person to the INSS, you will also not be entitled to sickness benefits, maternity pay, retirement and unemployment insurance, among others.

Formal and informal work: which type is best for you?

In general, the best type of job is one that guarantees employee benefits and rights. In other words, formal work is usually the best option for those who want to develop their careers and, at the same time, have the support of labor laws in case of unemployment, illnesses, accidents or even when they stop working and retire. .

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However, that answer depends a lot on what is most important to you in your current life. Do you need to work at any cost because you don’t have a financial reserve? Are you looking for a job, but have been unemployed for a long time? Perhaps, for this reason, you have no option and have to accept an informal job at this time. The important thing, however, is to keep looking for the ideal job for you. Update your curriculum, take free online courses. Be prepared because eventually the job you want will show up.

On the other hand, if you think about accepting informality just so you don’t have discounts on your salary, do the math carefully to understand if this is indeed an advantage – now and also in the future.

Evaluate everything you might be missing out on when giving up a formal job. We hope that is not the case, but you never know if you will ever need sickness aid, for example.

Before accepting any job – be it formal or informal – our tip is that you evaluate the conditions offered and also your alternatives at the moment.

We hope that this post has clarified the main points about the two ways of working, but the decision is always yours. ?

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