Labor Termination Calculator: Rights & How to Calculate
Learn how to calculate labor termination benefits in Brazil. Complete guide with examples, formulas, and calculator for severance pay.
Labor termination is one of the most complex moments in a Brazilian worker’s life. Correctly calculating your rights can make the difference between receiving fair compensation or losing money due to lack of knowledge.
Calculating severance benefits varies according to the type of termination and involves multiple components: salary balance, vacation pay, proportional 13th salary, prior notice, and FGTS (severance fund) penalty. Each type of termination generates different rights.
Rights in labor termination
Every worker with a formal employment contract has guaranteed rights at the time of termination. These rights vary according to the reason for dismissal and length of service at the company.
Types of termination
The type of termination determines which benefits the worker is entitled to receive:
- Dismissal without just cause: All rights + FGTS penalty + unemployment insurance
- Resignation: Basic rights (without FGTS penalty or unemployment insurance)
- Dismissal for just cause: Only salary balance and accrued vacation
- Indirect termination: Same rights as dismissal without just cause
- Contract expiration: Rights according to agreement or collective bargaining
Mandatory severance benefits
Basic severance benefits include components that vary according to the type of dismissal:
- Salary balance: Days worked in the termination month
- Accrued vacation: Unused vacation periods + 1/3 constitutional bonus
- Proportional vacation: Fraction of the current accrual period
- Proportional 13th salary: Months worked in the termination year
- Prior notice: 30 days + 3 days per year worked (maximum 90 days)
- FGTS penalty: 40% of total balance (only dismissal without just cause)
How to calculate termination
Calculating severance benefits follows specific rules for each component. It’s essential to know the correct percentages and formulas to avoid losses.
Salary balance
The salary balance corresponds to days worked in the termination month that haven’t been paid yet.
Formula: (Salary ÷ 30) × days worked in the month
Example: Salary R$ 3,000, worked 15 days in termination month Balance = (R$ 3,000 ÷ 30) × 15 = R$ 1,500
Vacation and 1/3 constitutional bonus
Vacation in termination includes accrued and proportional periods, always plus the constitutional third of 33.33%.
Accrued vacation: Complete 12-month periods not taken Proportional vacation: Fraction of current period (from 15 days = 1 month)
Example: 8 months worked in the accrual period Proportional vacation = (R$ 3,000 ÷ 12) × 8 = R$ 2,000 Plus 1/3 = R$ 2,000 × 1.3333 = R$ 2,666.60
Proportional 13th salary
The proportional 13th is calculated on months worked in the termination year. Periods over 15 days count as a complete month.
Formula: (Salary ÷ 12) × months worked
Example: Worked 7 months and 20 days in 2026 Proportional 13th = (R$ 3,000 ÷ 12) × 8 = R$ 2,000
Prior notice
Prior notice can be worked or compensated. In dismissal without just cause, the minimum value is 30 days, plus 3 days per year worked.
Prior notice calculation:
- Base: 30 days of salary
- Additional: 3 days per year of service
- Maximum: 90 days
Example: 5 years at company, salary R$ 3,000 Prior notice = 30 + (3 × 5) = 45 days Value = (R$ 3,000 ÷ 30) × 45 = R$ 4,500
FGTS penalty
The 40% penalty on FGTS is only due in dismissal without just cause. It applies to the entire account balance, including deposits from other jobs.
The penalty is calculated on the total accumulated FGTS balance, not just from the current job.
Termination by type
Each type of termination generates specific rights. Knowing the differences is essential to correctly calculate the amount due.
Dismissal without just cause
In dismissal without just cause, the worker is entitled to all severance benefits:
- Salary balance
- Prior notice (worked or compensated)
- Accrued and proportional vacation + 1/3
- Proportional 13th salary
- 40% penalty on FGTS
- Release of FGTS balance
- Unemployment insurance
Resignation
In resignation, the worker waives some rights:
- Salary balance
- Accrued and proportional vacation + 1/3
- Proportional 13th salary
- No right to: FGTS penalty, full withdrawal, and unemployment insurance
The employee must serve 30 days’ notice or compensate the company for the unworked period.
Dismissal for just cause
Dismissal for just cause is the type with fewest rights for the worker:
- Salary balance
- Accrued vacation (only already acquired periods)
- No right to: prior notice, proportional 13th, proportional vacation, FGTS penalty
FGTS remains blocked and there’s no right to unemployment insurance.
Practical calculation examples
Let’s simulate a complete termination to demonstrate the calculation of severance benefits in practice.
Worker data:
- Salary: R$ 4,000
- Time at company: 3 years and 4 months
- Situation: dismissal without just cause
- Worked 20 days in termination month
- 10 months in current vacation accrual period
- FGTS balance: R$ 15,000
Benefit calculation
| Benefit | Calculation | Value |
|---|---|---|
| Salary balance | (4,000 ÷ 30) × 20 | R$ 2,666.67 |
| Prior notice | (4,000 ÷ 30) × 39 days* | R$ 5,200.00 |
| Proportional vacation | (4,000 ÷ 12) × 10 × 1.3333 | R$ 4,444.40 |
| Proportional 13th | (4,000 ÷ 12) × 10 | R$ 3,333.33 |
| FGTS penalty | 15,000 × 40% | R$ 6,000.00 |
| Gross total | R$ 21,644.40 |
*39 days = 30 base days + 9 additional days (3 × 3 years)
To calculate your termination accurately, use our termination calculator which automatically considers all deductions and rights.
Deductions from benefits
Not all benefits are subject to INSS (social security) and IRPF (income tax) deductions. The incidence follows specific rules:
With deductions:
- Salary balance
- Worked prior notice
- Proportional 13th salary
Without deductions:
- Compensated prior notice
- Vacation + 1/3 constitutional bonus
- FGTS penalty
Termination approval
Termination approval is mandatory for contracts over 1 year. It can be done at the category union or at the company (with union assistance).
Required documents
- Employment Contract Termination Term (TRCT)
- Work card
- Social connectivity keys
- Dismissal examination
- Dismissal notice (CD)
Payment deadline
Severance benefits must be paid by:
- 10 days after contract termination (worked prior notice)
- 1st business day after termination (compensated prior notice)
Late payment generates a penalty equivalent to the employee’s salary.
Frequently Asked Questions
How to calculate complete labor termination?
To calculate termination, add: salary balance + prior notice + vacation (accrued and proportional) + 1/3 constitutional bonus + proportional 13th + FGTS penalty (if dismissal without just cause). Apply INSS and IRPF deductions according to each benefit’s incidence.
When am I entitled to the 40% FGTS penalty?
The 40% FGTS penalty is only due in dismissal without just cause, indirect termination, or fixed-term contract expiration. In resignation and dismissal for just cause, there’s no right to the penalty.
Are proportional vacation days paid in all types of termination?
Proportional vacation is paid in dismissal without just cause and resignation (provided more than 14 days worked in the accrual period). In dismissal for just cause, there’s no right to proportional vacation.
How does the 30 + 3 days prior notice work?
Prior notice is 30 base days + 3 days per year worked at the company, limited to 90 days total. Example: 4 years at company = 30 + (3×4) = 42 days of prior notice. It can be worked or compensated according to the type of termination.
What’s the deadline to receive severance benefits?
The employer has up to 10 calendar days to pay benefits when there’s worked prior notice, or until the 1st business day when notice is compensated. Delay generates a penalty equivalent to the employee’s monthly salary.
Can I withdraw FGTS in any type of termination?
Full FGTS withdrawal is only released in dismissal without just cause, indirect termination, and some other specific situations. In resignation and dismissal for just cause, FGTS remains blocked in the account.
How to calculate proportional 13th salary in termination?
Proportional 13th is calculated by dividing salary by 12 and multiplying by months worked in the termination year. Periods over 15 days count as a complete month. Example: 7 months and 20 days = 8 months for calculation.