Labor Termination Calculator 2026: Complete Guide
Learn how to calculate severance pay, notice period, proportional vacation and FGTS. Step-by-step examples and calculator to verify your rights.
Labor termination marks the end of an employment contract and generates entitlement to various compensation payments. Knowing how to correctly calculate these amounts is essential to ensure you receive everything you’re entitled to.
In 2026, CLT (Brazilian Labor Law) rules continue to define which amounts must be paid for each type of dismissal. The calculation may seem complex, but by following the correct steps you can verify that everything is being paid properly.
What is labor termination
Labor termination is the official severance of the employment relationship between company and employee. This process generates entitlement to various payments, which vary according to the type of dismissal.
Types of termination
The main types of termination are:
- Dismissal without just cause: Company’s decision, generates entitlement to all payments
- Resignation: Employee’s decision, reduces some rights
- Dismissal for just cause: Employee’s serious misconduct, eliminates several payments
- Indirect termination: Company’s serious misconduct, equivalent to dismissal without just cause
- Mutual agreement: Consensus between parties, with specific rules
Worker’s rights
Every worker is entitled to labor settlement upon termination. The amounts include already earned payments (such as accrued vacation) and proportional ones (referring to the period worked).
The company has specific deadlines to make payment. Non-compliance generates an additional fine of one employee’s salary.
Severance payments
The main payments that make up labor termination are calculated based on the employee’s salary and length of service.
Salary balance
The salary balance corresponds to days worked in the month of dismissal that have not yet been paid.
Calculation: (Salary ÷ 30) × days worked
Example: Employee with salary of R$ 3,000, dismissed on the 15th. Balance = (R$ 3,000 ÷ 30) × 15 = R$ 1,500
Notice period
The notice period can be worked (employee serves 30 days) or compensated (company pays without working).
In dismissal without just cause, the notice period is 30 days + 3 days per year worked, limited to 90 total days.
In resignation, the employee must give 30 days’ notice or have this amount deducted from the settlement.
Proportional vacation
Proportional vacation corresponds to the period of acquired right in the current year, even if incomplete.
Calculation: (Salary ÷ 12) × months worked + 1/3 constitutional
Example: 8 months worked, salary R$ 3,000. Vacation = (R$ 3,000 ÷ 12) × 8 = R$ 2,000 + R$ 667 (1/3) = R$ 2,667
Proportional 13th salary
The proportional 13th salary is calculated by months worked in the year, considering 15 days or more as a complete month.
Calculation: (Salary ÷ 12) × months worked
FGTS and fine
FGTS (Severance Fund) is deposited monthly by the company (8% of salary). In dismissal without just cause, there is entitlement to a 40% fine on the total balance.
The fine applies to the entire FGTS balance, including previous deposits from other jobs.
How to calculate each payment
The termination calculation follows a logical sequence that considers all payments due according to the type of dismissal.
Step-by-step calculation
- Identify the type of termination (determines which payments are due)
- Calculate salary balance (days worked in the month)
- Calculate notice period (30 days + 3 per year worked)
- Calculate proportional vacation (months worked ÷ 12 + 1/3)
- Calculate proportional 13th (months worked ÷ 12)
- Add FGTS and fine (8% + 40% in dismissal without just cause)
Applied deductions
From the settlement are deducted:
- INSS (Social Security): According to 2026 table (up to 14% on the ceiling)
- IRPF (Income Tax): According to progressive 2026 table
- Notice period: If the employee resigned and didn’t serve notice
- Other deductions: Advances, unused transportation vouchers
Practical examples
Let’s calculate two common scenarios to clarify the differences between types of termination.
Dismissal without just cause
Situation: João, salary R$ 4,000, 2 years at company, dismissed on March 15, 2026.
| Payment | Calculation | Amount |
|---|---|---|
| Salary balance | (R$ 4,000 ÷ 30) × 15 | R$ 2,000 |
| Notice period | 30 + 6 days = 36 days | R$ 4,800 |
| Proportional vacation | (R$ 4,000 ÷ 12) × 3 + 1/3 | R$ 1,333 |
| Proportional 13th | (R$ 4,000 ÷ 12) × 3 | R$ 1,000 |
| FGTS fine | 40% on balance | According to statement |
Gross total: Approximately R$ 9,133 (not counting FGTS and deductions)
Resignation
Situation: Maria, same profile as João, but resigned.
Differences:
- No FGTS fine (40%)
- No compensated notice period (or deducted if not served)
- Maintains: Salary balance, proportional vacation, proportional 13th
The settlement amount in resignation is significantly lower, as there is no entitlement to compensated notice period or FGTS fine.
Payment deadlines
The company must pay the settlement within specific deadlines, under penalty of fine:
- Worked notice period: Until the 1st business day after termination
- Compensated notice period: Until the 10th calendar day of dismissal
- Agreement or mutual agreement: Until the 10th calendar day
Late payment generates a fine of one salary of the employee, an amount that must be paid in full without deductions.
Termination approval
Contracts over 1 year need to be approved at the union or Ministry of Labor. This process ensures that all rights have been calculated correctly.
Use our labor termination calculator to verify that your calculations are correct and ensure you are receiving all amounts due according to 2026 legislation.
Frequently Asked Questions
How long does the company have to pay the settlement?
The company has up to 10 calendar days to pay when there is compensated notice period, or until the 1st business day after termination when notice is worked. Delays generate a fine of one salary.
What payments am I entitled to in dismissal without just cause?
In dismissal without just cause you are entitled to: salary balance, compensated notice period, proportional vacation + 1/3, proportional 13th salary, FGTS withdrawal and 40% fine on FGTS.
How is notice period calculated in 2026?
Notice period is 30 days + 3 days per year worked, limited to 90 total days. For 2 years at the company, for example, it’s 36 days (30 + 6 additional days).
Can I withdraw FGTS in resignation?
No. In resignation you cannot withdraw FGTS nor are you entitled to the 40% fine. The balance remains blocked until you qualify for one of the withdrawal conditions provided by law.
Are there INSS and IR deductions on settlement?
Yes. INSS and Income Tax apply according to 2026 tables on payments of salary nature (salary balance, notice period, proportional vacation). Proportional 13th has specific taxation.
What happens if I don’t agree with the settlement amount?
If there are discrepancies in calculations, you can seek the union, Ministry of Labor or file a labor lawsuit. It’s important to keep all documents and use a reliable calculator to check the amounts.
Are accrued and unused vacation paid in settlement?
Yes. Accrued vacation (complete acquisition period) is paid double if not granted within the legal deadline, plus the 1/3 constitutional bonus. This amount is due regardless of the type of termination.