Brazil Employee Termination Pay Calculator (Rescisão trabalhista)

About the Brazil Employee Termination Pay Calculator (Rescisão trabalhista)

Work out what an employee in Brazil receives when a job under the CLT ends: the salary balance (saldo de salário), the notice (aviso prévio) paid in lieu, the proportional 13th salary, earned and proportional vacation with the constitutional third, and the FGTS deposit and fine, for each way a job can end — a dismissal without cause, a resignation, an ending by agreement under CLT art. 484-A, a dismissal for cause or the end of a fixed-term contract. The employee’s INSS and the income tax withheld at source come off the salary items and, on its own, the 13th salary, the way a termination statement (TRCT) shows them.

Enter the two dates, the salary and how the notice is given: the calculator counts the completed years for the notice, adds a notice paid in lieu to the service for the 13th salary and vacation, and lists every line with its working. It is in English, with the Portuguese names beside each line, for employees, HR teams and employers abroad. Nothing you type leaves your browser. Without a pass the page shows a free preview of your own result: the net amount in full, with the first lines of the statement, while every other figure stays hidden until you unlock it with a Pro pass.

What each way of ending pays

• Dismissal without cause (dispensa sem justa causa): the salary balance, the notice, the proportional 13th salary and vacation with the third, the 40% FGTS fine, and the whole FGTS account can be withdrawn (Lei 8.036 arts. 18 and 20).
• Resignation (pedido de demissão): the salary balance, the proportional 13th salary and vacation; you owe 30 days’ notice, and if you do not work them the employer may deduct their salary (CLT art. 487). No fine; the FGTS stays in the account.
• Ending by agreement (acordo, CLT art. 484-A): half of the notice if it is paid in lieu and half of the fine (20%), everything else in full; up to 80% of the FGTS can be withdrawn (FGTS official site), and there is no unemployment insurance.
• Dismissal for cause (justa causa): only the salary balance and earned vacation with its third (CLT art. 146; Decreto 10.854 art. 82).
• Fixed-term contract ends on its date: the salary balance, the proportional 13th salary and vacation; no notice or fine, and the FGTS can be withdrawn (Lei 8.036 art. 20 IX).

The notice (aviso prévio)

An employer gives 30 days’ notice up to one year of service, and 3 days more for each year of service, at most 60 more: 90 days in all (Lei 12.506/2011). The calculator adds 3 days for each completed year. A notice paid in lieu (indenizado) is worth the remuneration of its days, habitual overtime included, and its days count in the length of service (CLT art. 487 §§1 and 5): a notice that runs into another month adds a twelfth of 13th salary and of vacation. When the employer gives a worked notice, the working day is 2 hours shorter, or the employee works full days and takes 7 calendar days off (art. 488). An employee who resigns owes 30 days (art. 487 II); Lei 12.506 grants its extra days to employees.

The 13th salary and vacation

The proportional 13th salary is a twelfth of the remuneration for each calendar month of the year with 15 days of work or more (Lei 4.090 art. 1). Vacation earned and not taken is paid in full, and double when the employer let the 12-month deadline pass (CLT arts. 137 and 146); the vacation year under way is paid as twelfths, a fraction of 15 days or more counting as a month, with the days the absences leave: up to 5 absences: 30 days, 6 to 14 absences: 24 days, 15 to 23 absences: 18 days, 24 to 32 absences: 12 days, none above 32 (art. 130). Each vacation amount has the constitutional third (Constitution art. 7 XVII). Before 12 months of service the CLT names proportional vacation for a dismissal without cause and the end of a fixed-term contract (art. 147); the calculator also pays it on a resignation or an agreement under ILO Convention 132 art. 11, which Brazil has ratified.

INSS, income tax and the FGTS

The employee’s INSS is worked out on the salary items with the progressive table, each rate on its own band up to the ceiling (INSS table; Constitutional Amendment 103 art. 28), and separately on the 13th salary (Decreto 3.048 art. 214 §7). The notice paid in lieu carries no INSS (PGFN), but the 13th salary it adds does; vacation paid on termination and the FGTS fine carry none (Lei 8.212 art. 28 §9).

Income tax is withheld on the salary items and, on its own and only at source, on the 13th salary (Lei 8.134 art. 16), after INSS and the deduction per dependant, or the simplified discount when larger, and with the monthly reduction, which takes the whole tax off a taxable income up to R$5,000.00 and less of it up to R$7,350.00 (Receita Federal tables; Lei 9.250 arts. 3-A and 4). The notice, the indemnities and the FGTS are exempt (Lei 7.713 art. 6 V), and so is vacation paid on termination with its third (Receita Federal).

The employer deposits 8% of the salary balance, the notice and the 13th salary in the FGTS account (2% for an apprentice; not of vacation paid on termination: Lei 8.036 art. 15), and the fine is 40% — 20% on an agreement — of the account with that deposit (art. 18). An employee who chose the anniversary withdrawal (saque-aniversário) cannot withdraw the account when the job ends; the fine of a dismissal can be withdrawn (arts. 20-A and 20-D), and so can the fine of an ending by agreement (FGTS official site).

When the settlement is paid

The employer pays the settlement and hands over the documents within 10 days of the end of the contract; paying late owes the employee a fine of one salary (CLT art. 477 §§6 and 8). A set-off in the settlement may not exceed one month’s pay (§5).

Limitations

• Follows the CLT for urban employees; domestic workers, rural workers, public servants and contracts with rules of their own (apprentices aside, for the FGTS rate) may differ.
• A collective agreement (convenção or acordo coletivo) or the contract may give more: a longer notice, extra premiums or a different count.
• A fixed-term contract ended early is not worked out: it owes half of the pay up to its end date (CLT art. 479), which you can add under other pay due.
• The salary balance is worked out on the days you enter, the variable pay as one monthly average; payslips may count days or averages differently.
• When the notice is worked, the calculator takes all its days as worked; if your employer pays some of them instead, add that pay under other pay due.
• INSS and income tax are worked out as if the settlement were the only pay of the month; a salary already paid in the same month changes them.
• MySmartCoPilot is not a law firm: the result is an estimate from the laws and the tax tables, not legal advice. Have an HR professional or a lawyer check the settlement before you sign it.

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