Employment Termination Calculator & Rights Guide Brazil
Learn how to calculate severance pay, FGTS penalties, and all termination benefits. Complete guide with examples and free calculator.
When an employment contract ends, questions arise about what amounts the worker is entitled to. Employment termination involves different payments that vary according to the reason for dismissal.
In this guide, you’ll learn to calculate each termination amount, from salary balance to FGTS (severance fund) penalties. At the end, you’ll find practical examples and can use our termination calculator to check your calculations.
Types of employment termination
Dismissal without cause
Dismissal without cause is the most advantageous type for the worker. The employer terminates the contract at their own discretion, without the employee having committed serious misconduct.
Guaranteed rights:
- Salary balance
- Prior notice (worked or compensated)
- Accrued and proportional vacation + 1/3
- Proportional 13th salary
- FGTS + 40% penalty
- Unemployment insurance (if meeting requirements)
Resignation
In resignation, the worker themselves requests dismissal. In this case, they lose some important rights.
Guaranteed rights:
- Salary balance
- Accrued and proportional vacation + 1/3
- Proportional 13th salary
- FGTS (without 40% penalty)
Not entitled to:
- Compensated prior notice
- 40% FGTS penalty
- Unemployment insurance
Mutual agreement
Mutual agreement was created by the 2017 Labor Reform. It allows employer and employee to terminate the contract by mutual consent.
Guaranteed rights:
- Salary balance
- Half of prior notice
- Accrued and proportional vacation + 1/3
- Proportional 13th salary
- 20% FGTS penalty (half of 40%)
- Access to 80% of FGTS
Dismissal for cause
Dismissal for cause occurs when the worker commits serious misconduct as defined in article 482 of CLT (labor law).
Guaranteed rights:
- Only salary balance
- Accrued vacation (if any) + 1/3
Not entitled to:
- Prior notice
- Proportional 13th salary
- Proportional vacation
- FGTS penalty
- Unemployment insurance
Termination payments by type
| Payment | Without cause | Resignation | Mutual agreement | For cause |
|---|---|---|---|---|
| Salary balance | ✓ | ✓ | ✓ | ✓ |
| Prior notice | ✓ | ✗ | 50% | ✗ |
| Accrued vacation | ✓ | ✓ | ✓ | ✓ |
| Proportional vacation | ✓ | ✓ | ✓ | ✗ |
| Proportional 13th | ✓ | ✓ | ✓ | ✗ |
| FGTS penalty | 40% | ✗ | 20% | ✗ |
Salary balance
The salary balance corresponds to days worked in the termination month that haven’t been paid yet.
Formula: (Salary ÷ 30) × days worked
Example: Worker with R$ 3,000 salary, dismissed on the 15th. Calculation: (R$ 3,000 ÷ 30) × 15 = R$ 1,500
Prior notice
Prior notice can be worked (employee fulfills the 30 days) or compensated (company pays without working).
For contracts over 1 year, 3 days per year worked are added, limited to 90 total days.
Calculation for long contracts:
- Basic notice: 30 days
- Additional: 3 days × years worked
- Maximum: 90 days
Example: 5 years at company = 30 + (3 × 5) = 45 days of notice
Proportional vacation
Proportional vacation is calculated considering months worked in the current accrual period.
Formula: (Salary + 1/3) × (months worked ÷ 12)
Periods over 14 days count as a complete month.
Example: R$ 2,400 salary, worked 7 months Calculation: (R$ 2,400 + R$ 800) × (7 ÷ 12) = R$ 1,867
Proportional 13th salary
The proportional 13th salary considers months worked in the termination year.
Formula: Salary × (months worked ÷ 12)
Periods over 14 days count as a complete month.
FGTS and penalty
FGTS must be deposited monthly by the employer (8% of salary). In dismissal without cause, there’s a 40% penalty on the entire balance.
In mutual agreement, the penalty is 20% and the worker can access 80% of the balance.
How to calculate each payment
Formulas and examples
To facilitate understanding, let’s use a complete example with the following data:
- Salary: R$ 4,000
- Time at company: 2 years and 3 months
- Termination date: 10/20/2024
- Type: Dismissal without cause
- FGTS balance: R$ 10,000
Detailed calculation
1. Salary balance: (R$ 4,000 ÷ 30) × 20 days = R$ 2,667
2. Prior notice: 30 days + (3 × 2 years) = 36 days (R$ 4,000 ÷ 30) × 36 = R$ 4,800
3. Proportional vacation (10 months): (R$ 4,000 + R$ 1,333) × (10 ÷ 12) = R$ 4,444
4. Proportional 13th (10 months): R$ 4,000 × (10 ÷ 12) = R$ 3,333
5. FGTS penalty (40%): R$ 10,000 × 0.40 = R$ 4,000
Gross total: R$ 19,244
Mandatory deductions
Regular deductions apply to termination amounts:
- INSS (social security): according to current table
- IRRF: if applicable
- Alimony: if court-ordered
Use our termination calculator to automatically get the net calculation.
Payment deadline
The deadline for paying termination amounts is strictly defined by CLT:
Legal deadlines
- Worked prior notice: by the 1st business day after completion
- Compensated prior notice: within 10 calendar days of notification
- Delay: penalty of 1 salary to the employee
Consequences of delay
Late payment generates a 100% penalty of the employee’s salary, which must be paid in full to the worker.
This penalty has no ceiling and is calculated on the last contractual salary.
Termination documents
TRCT and others
Termination must be formalized through specific documents:
Mandatory documents:
- TRCT (Employment Contract Termination Term)
- Connectivity keys for FGTS withdrawal
- Unemployment insurance forms (when due)
- Exit medical exam
- Settlement certificate of labor obligations
Approval
Contracts over 1 year must be approved:
- At the category union
- At the Ministry of Labor
- At other competent agencies
Approval ensures all rights were paid correctly.
Complete calculation example
Let’s consolidate a practical example with all calculations:
Worker data
- Name: João Silva
- Salary: R$ 3,500
- Hire date: 03/01/2022
- Termination: 11/15/2024 (without cause)
- Time: 2 years, 8 months and 14 days
Detailed calculations
| Payment | Calculation | Amount |
|---|---|---|
| Salary balance | (R$ 3,500 ÷ 30) × 15 | R$ 1,750.00 |
| Prior notice | (R$ 3,500 ÷ 30) × 36 days | R$ 4,200.00 |
| Proportional vacation | (R$ 4,667) × (8 ÷ 12) | R$ 3,111.33 |
| Proportional 13th | R$ 3,500 × (11 ÷ 12) | R$ 3,208.33 |
| FGTS penalty 40% | R$ 8,500 × 0.40 | R$ 3,400.00 |
Gross total: R$ 15,669.66
After INSS and IRRF (income tax) deductions, the net amount will be lower. Use our calculator to get the exact result.
Frequently Asked Questions
How long do I have to receive my termination pay?
The maximum deadline is 10 calendar days when there’s compensated prior notice, or by the first business day after worked prior notice ends. Delays generate a penalty of one salary.
Can I withdraw FGTS in any type of termination?
No. Full FGTS withdrawal is only allowed in dismissal without cause. In resignation, the balance remains blocked. In mutual agreement, you can withdraw 80% of the amount.
How is proportional prior notice calculated?
Basic prior notice is 30 days. For contracts over 1 year, 3 days per year worked are added, limited to a maximum of 90 days. Example: 3 years = 30 + 9 = 39 days.
What happens if the company doesn’t pay termination on time?
The company must pay a 100% penalty of the last salary to the worker, plus interest and monetary correction on overdue amounts. It may also face labor inspection.
Are accrued vacation different from proportional vacation?
Yes. Accrued vacation are periods already earned (over 12 months) that weren’t used. Proportional vacation refers to the current period, calculated by months worked in the termination year.
When am I entitled to unemployment insurance?
Unemployment insurance is only due in dismissal without cause, provided you worked at least 12 months in the last 18 months (first application) or 9 months in the last 12 months (subsequent applications).
Can I contest the termination amounts?
Yes. If you disagree with the amounts, you can seek guidance from the union, Ministry of Labor, or file a labor lawsuit. It’s important to keep all documents and pay stubs as proof.