Complete Guide to Employment Termination Calculation 2025

Employment termination is a crucial moment involving specific rights and precise calculations. With the 2025 updates, it’s essential to understand the correct severance pay to avoid financial losses.

This guide presents the complete termination calculation, considering different types of dismissal and the rules in effect for 2025.

Types of employment termination

Dismissal without just cause

In dismissal without just cause, the worker is entitled to all severance benefits. This is the modality that guarantees the greatest financial protection.

The employer must pay in full:

• Proportional salary balance
• Accrued and proportional vacation with 1/3 constitutional bonus
• Proportional 13th salary
• Prior notice (worked or compensated)
• FGTS (severance fund) + 40% penalty

Resignation

When the employee resigns, they do not receive prior notice or FGTS penalty. They maintain the right to other proportional benefits.

Guaranteed rights:

• Salary balance
• Accrued and proportional vacation + 1/3
• Proportional 13th salary
• FGTS withdrawal (without penalty)

Dismissal for just cause

Just cause dismissal is the most restrictive modality. The worker loses important rights and receives only:

• Salary balance for days worked
• Accrued vacation (if any) + 1/3

There is no right to prior notice, proportional 13th salary, proportional vacation, or FGTS penalty.

Mandatory severance benefits

Salary balance

The balance corresponds to days worked in the month of termination. The calculation considers the monthly salary divided by 30 days.

Example: Salary R$ 3,000, worked 15 days → R$ 3,000 ÷ 30 × 15 = R$ 1,500

Vacation and 13th salary

Vacation can be accrued (complete period not taken) or proportional (fraction of current acquisition period).

Proportional vacation calculation:

• Months worked × salary ÷ 12
• Add 1/3 constitutional bonus

Proportional 13th salary:

• Months worked × salary ÷ 12
• Consider complete month when more than 15 days are worked

FGTS and penalty

FGTS corresponds to 8% of salary deposited monthly. In dismissal without just cause, a 40% penalty applies to the total balance.

The 40% penalty is calculated on:

• Current account balance
• Deposits from termination month
• Compensated prior notice

Step-by-step calculation

Calculation basis

To calculate correctly, organize the basic information:

Proportions and deductions

Complete months for 13th and vacation: Consider complete month when more than 15 days are worked.

Mandatory deductions:

• INSS (social security) (2025 rates: 7.5% up to R$ 1,412, scaled up to 14% on R$ 7,786.02)
• IRPF (income tax) (according to 2025 table)
• Alimony (if applicable)

Use the termination calculator to automatically obtain precise values.

Payment deadlines

Legal deadlines

With worked prior notice: By the 1st business day after contract termination.

With compensated prior notice: By the 10th calendar day from dismissal notification.

Consequences of delay

Late payment generates a penalty equivalent to the employee’s salary. This is a right guaranteed by CLT (labor law), regardless of the reason for delay.

Complete practical example

Scenario: Dismissal without just cause

Worker data:

• Salary: R$ 4,500
• Hire date: March 15, 2023
• Termination: November 20, 2025
• Accrued vacation: 1 complete period
• FGTS balance: R$ 8,000

Benefit calculation

Salary balance (20 days worked in November):

R$ 4,500 ÷ 30 × 20 = R$ 3,000

Accrued vacation + 1/3:

R$ 4,500 + (R$ 4,500 ÷ 3) = R$ 6,000

Proportional vacation (8 complete months):

(R$ 4,500 ÷ 12 × 8) + 1/3 = R$ 3,000 + R$ 1,000 = R$ 4,000

Proportional 13th (11 months):

R$ 4,500 ÷ 12 × 11 = R$ 4,125

Compensated prior notice:

R$ 4,500

FGTS + 40% penalty:

Balance: R$ 8,000 + termination deposits: R$ 1,280 = R$ 9,280 Penalty: R$ 9,280 × 40% = R$ 3,712

Gross and net total

Gross total: R$ 25,625

Deductions (INSS + IRPF): Approximately R$ 3,200

Net amount: R$ 22,425 + FGTS with penalty

Worker rights

Required documentation

Upon termination, the employer must provide:

• TRCT (Employment Contract Termination Agreement)
• FGTS withdrawal forms
• Dismissal Notice for unemployment insurance
• Updated Work Card
• Exit medical examination

Unemployment insurance

Requirements to receive:

• Dismissal without just cause
• Minimum 12 months worked (first application)
• No sufficient independent income

Installments: From 3 to 5 installments, according to time worked.

Approval process

Contracts over 1 year must be approved by the union or Ministry of Labor. Approval ensures all rights have been paid correctly.

Deadline: Up to 10 days after termination.

Frequently Asked Questions

Can I withdraw FGTS in any type of termination?

Yes, but conditions vary. In dismissal without just cause, you withdraw the total balance plus 40% penalty. In resignation, you withdraw only the balance without penalty. In just cause, there’s no right to withdrawal.

How is proportional prior notice calculated?

Prior notice has 30 base days plus 3 days per year worked, limited to 90 total days. For 5 years of work: 30 + (3 × 5) = 45 days of prior notice.

Do accrued vacations have an expiration date?

There’s no expiration date for accrued vacations. Even after years without taking them, the right remains and must be paid in full upon termination, with double penalty if applicable.

What happens if the company delays severance payment?

The company must pay a penalty equal to your salary for the delay. Additionally, you can seek interest and monetary correction in Labor Court.

Can I receive unemployment insurance if dismissed for just cause?

No. Unemployment insurance is exclusive to dismissals without just cause. Just cause dismissals do not generate entitlement to the benefit.

How do I correctly calculate INSS and IRPF deductions on severance?

Deductions apply to each benefit separately. Use the 2025 tables for INSS (up to 14%) and IRPF (up to 27.5%). The termination calculator automatically applies the correct rates.

Can I contest the severance amount if it’s incorrect?

Yes. You have up to 2 years after termination to contest amounts in Labor Court. Keep all documents and receipts for potential legal action.