Employment Termination Calculation Guide 2024
Complete guide to calculating severance pay in Brazil. Learn about different types of termination, mandatory payments, and workers' rights in 2024.
Employment termination is a moment that generates many doubts for both employees and employers. Understanding how to correctly calculate severance pay avoids future problems and ensures that all rights are respected.
The calculation varies according to the type of termination and the employee’s length of service. In 2024, some rules were updated, especially related to INSS (social security) contribution amounts and the Income Tax table.
Employment termination in 2024
Types of termination
The first step is to identify which type applies to your case:
- Dismissal without just cause (by employer)
- Resignation (by employee)
- Dismissal for just cause
- Indirect dismissal (employer’s just cause)
- Agreement between parties (Law 13.467/2017)
- End of fixed-term contract
Worker’s rights
Each type of termination generates specific rights. Dismissal without just cause offers the most guarantees to workers, including all severance pay and right to unemployment insurance.
The agreement between parties allows the employee to withdraw 80% of FGTS (severance fund) and receive half of the 40% penalty, but has no right to unemployment insurance.
Mandatory severance payments
Salary balance
Refers to days worked in the month of termination that have not yet been paid. The calculation is proportional.
Example: Salary of R$ 3,000, working 15 days of the month → R$ 3,000 ÷ 30 days × 15 days = R$ 1,500
Prior notice
Can be worked or compensated. The minimum period is 30 days, plus 3 days per year of service, limited to 90 days total.
Proportional prior notice calculation:
- Base: 30 days
- Addition: 3 days per complete year of service
- Maximum limit: 90 days
Example: 4 years of service → 30 + (4 × 3) = 42 days of prior notice
Proportional and accrued vacation
Accrued vacation are periods already earned but not taken. Proportional vacation corresponds to the period worked in the last year, calculated in twelfths.
Both include the constitutional 1/3 bonus.
Example: 8 months worked in the last acquisition period → 8/12 × 30 days = 20 days of proportional vacation
Proportional 13th salary
Calculated based on months worked in the year of termination. A complete month is considered when 15 days or more are worked.
The formula is: (Salary ÷ 12) × months worked
Example: Salary R$ 3,600, working 7 months → R$ 3,600 ÷ 12 × 7 = R$ 2,100
How to calculate each payment
Calculation formulas
Use our termination calculator for total accuracy, but know the basic formulas:
| Payment | Formula | Note |
|---|---|---|
| Salary balance | (Salary ÷ 30) × days worked | Calendar days of the month |
| Prior notice | Salary + proportionals | According to length of service |
| Proportional vacation | (Salary ÷ 12) × months + 1/3 | Twelfths worked |
| Proportional 13th | (Salary ÷ 12) × months | Months with 15+ days |
Payment deadlines
The company has specific deadlines to settle termination:
- Worked prior notice: until the first business day after completion
- Compensated prior notice: within 10 calendar days of notification
- Delay: penalty of 1 minimum wage (R$ 1,412 in 2024)
Termination for just cause vs without just cause
Differences in rights
The termination type drastically changes worker rights:
Without just cause - complete rights:
- Salary balance
- Prior notice (worked or compensated)
- Proportional 13th salary
- Accrued + proportional vacation + 1/3
- FGTS + 40% penalty
- Unemployment insurance
For just cause - reduced rights:
- Only salary balance
- Accrued vacation + 1/3 (if any)
- No FGTS, no penalty, no unemployment insurance
FGTS and penalty
In dismissal without just cause, the worker receives a 40% penalty on all FGTS deposited during the contract. This penalty is paid by the employer directly to the worker.
FGTS withdrawal is released after termination, including amounts deposited in previous jobs.
Practical calculation example
Complete simulation
Employee with salary of R$ 4,000, working 2 years and 8 months, dismissed without just cause on March 15:
Severance payments:
- Salary balance (15 days): R$ 2,000
- Prior notice (38 days): R$ 5,067
- Proportional 13th (2 months): R$ 667
- Proportional vacation (8 months + 1/3): R$ 3,556
- Accrued vacation (30 days + 1/3): R$ 5,333
Gross total: R$ 16,623
This amount still has INSS and IRPF (income tax) deductions according to 2024 tables. Use our termination calculator to get the exact net amount.
Required documents for termination
Mandatory documentation
The company must provide specific documents at the time of termination:
- TRCT (Employment Contract Termination Term)
- Work Card with registered discharge
- Unemployment insurance guides (if applicable)
- Social connectivity key for FGTS withdrawal
- Dismissal medical exam
- FGTS regularity certificate
Approval
For contracts over 1 year, termination must be approved by the union of the category or at the Ministry of Labor, ensuring all rights were respected.
The deadline for approval is 10 calendar days after contract completion.
Frequently Asked Questions
How to calculate termination for contracts under 1 year?
The calculation follows the same rules, but prior notice is only 30 days and union approval is not necessary. Proportional vacation and 13th salary are calculated normally by months worked.
Can I use FGTS to buy a house after termination?
Yes, after dismissal without just cause you can use FGTS to purchase property, pay off housing financing, or as down payment for your own home, following Federal Savings Bank rules.
How long do I have to receive severance payments?
The employer has up to 1 business day after completion (worked prior notice) or 10 calendar days (compensated prior notice). Delay generates a penalty of 1 minimum wage in favor of the worker.
Does termination by agreement affect unemployment insurance?
No. In termination by mutual agreement, the worker has no right to unemployment insurance, but can withdraw 80% of FGTS and receives half the severance penalty (20% on FGTS).
How to calculate proportional vacation in termination?
Divide salary by 12 and multiply by months worked in the current acquisition period. Add constitutional 1/3. Consider complete month when 15 days or more are worked.
Does dismissal for just cause give right to any compensation?
No. In just cause the worker only receives salary balance and accrued vacation (if any) with 1/3. Loses right to FGTS, severance penalty, prior notice and unemployment insurance.
Can I contest the termination amount?
Yes. If you disagree with calculations, contact the category union or file a labor complaint. It’s important to check each payment using a reliable calculator before signing the TRCT.