Complete Guide: How to Calculate Vacation Pay in Brazil

Every Brazilian worker is entitled to 30 days of paid vacation after every 12 months of work. But calculating the correct vacation amount goes far beyond base salary — it involves the constitutional third, bonuses, deductions and specific CLT (labor law) rules.

Mastering vacation calculations is essential to ensure you receive all your rights. Let’s explain every practical detail.

Vacation Rights in Brazil

Vacation is a right guaranteed by the Federal Constitution and regulated by CLT (labor law). Every employee acquires this right after working 12 complete months at the same company.

Accrual and Grant Periods

The accrual period is the 12 months worked that generate vacation rights. The grant period is the following 12 months when the employer must grant the vacation.

Important rules:

• Vacation must be granted within 12 months after the accrual period
• Employers can split it into up to 3 periods (one with minimum 14 days)
• Unused vacation generates the right to double payment

Proportional Vacation

When a contract ends before completing 12 months, the worker is entitled to proportional vacation if they worked more than 14 days.

The proportionality follows this table:

Example: Worker with 8 months = 8 × 2 = 16 proportional vacation days

How to Calculate Vacation Value

Vacation calculation considers three main elements: base salary, regular bonuses, and the constitutional third.

Base Salary and Bonuses

For vacation calculation, use the remuneration from the month before vacation, including:

• Fixed salary
• Commissions
• Regular overtime
• Night shift bonuses
• Incorporated bonuses

Don’t include: expense allowances, travel per diem, occasional bonuses.

Constitutional Third

The constitutional third is a mandatory 33.33% increase over vacation value. It’s guaranteed by the Federal Constitution, article 7.

Basic formula:

• Vacation value = Base salary × vacation days ÷ 30
• Constitutional third = Vacation value × 1/3
• Total = Vacation value + Constitutional third

Example: Salary R$ 3,000, 30 vacation days

• Vacation = R$ 3,000
• Third = R$ 3,000 × 1/3 = R$ 1,000
• Gross total = R$ 4,000

Vacation Sale (Cash Allowance)

Workers can “sell” up to 10 days of their vacation to the employer. This is called cash allowance.

Sale Rules

• Deadline: request up to 15 days before the end of accrual period
• Limit: maximum 1/3 of vacation (10 days out of 30)
• Value: includes constitutional third on sold days
• Decision: it’s the employee’s right, not obligation

Cash Allowance Calculation

Cash allowance also receives the constitutional third:

Formula:

• Allowance value = (Salary ÷ 30) × days sold × 4/3

Example: Salary R$ 3,000, selling 10 days

• Base value = R$ 3,000 ÷ 30 × 10 = R$ 1,000
• With third = R$ 1,000 × 4/3 = R$ 1,333.33

Collective Vacation

Collective vacation is granted simultaneously to all company or department employees. It can be split into up to 2 periods, each with minimum 10 days.

Characteristics:

• Mandatory notification to union and DRT 15 days in advance
• Workers with less than 12 months receive proportionally
• Remaining balance stays for next period

Vacation Deductions

Vacation is subject to the same payroll deductions: INSS (social security) and IRPF (income tax).

INSS and IRPF

INSS deduction rates for 2025:

IRPF (income tax) applies to vacation value minus INSS deduction, using the normal progressive table.

Tip: Use our vacation calculator to automatically get the net amount.

Complete Calculation Examples

Let’s calculate vacation for a worker with R$ 4,500 salary taking 20 vacation days and selling 10 days:

Vacation Calculation (20 days):

• Proportional value = R$ 4,500 ÷ 30 × 20 = R$ 3,000
• Constitutional third = R$ 3,000 ÷ 3 = R$ 1,000
• Vacation subtotal = R$ 4,000

Cash Allowance Calculation (10 days):

• Proportional value = R$ 4,500 ÷ 30 × 10 = R$ 1,500
• Constitutional third = R$ 1,500 ÷ 3 = R$ 500
• Allowance subtotal = R$ 2,000

Gross Total and Deductions:

• Gross total = R$ 6,000
• INSS (14%) = R$ 840
• IRPF (base R$ 5,160) = R$ 337.13
• Net amount = R$ 4,822.87

Rights Upon Contract Termination

Upon contract termination, workers are entitled to proportional vacation and unused accrued vacation.

Accrued vacation: paid double when not granted within legal deadline Proportional vacation: calculated according to months worked in last accrual period

Special situations:

• Termination for cause: no right to proportional vacation
• Resignation: right to proportional if worked more than 14 days
• Termination without cause: all rights guaranteed

The Sethian vacation calculator automatically calculates all these scenarios, including INSS (social security) and IRPF (income tax) deductions.

Frequently Asked Questions

How to calculate 8-month proportional vacation?

For 8 months worked, you’re entitled to 16 vacation days (8 × 2 days per month). The value is: (salary ÷ 30) × 16 days + constitutional third.

Can I sell more than 10 vacation days?

No. CLT (labor law) limits vacation sale to maximum 1/3 of the period, meaning 10 days out of 30. This rule cannot be changed even by agreement.

Does constitutional third apply to sold vacation?

Yes. Cash allowance (vacation sale) also receives the constitutional third of 33.33%, calculated on sold days.

Do unused vacations expire?

Yes. The right to claim unused vacation expires 5 years after contract termination, or 2 years after contract end.

How does collective vacation payment work?

In collective vacation, everyone receives proportionally to months worked. Those with less than 12 months receive proportional amount and balance remains for next period.

Can I take split vacation?

Yes. Vacation can be divided into up to 3 periods, with one minimum 14 consecutive days and others with at least 5 days each.

What’s the deadline for vacation payment?

Vacation must be paid up to 2 days before the rest period begins. Late payment generates right to penalty equivalent to employee’s salary.