Severance Pay Calculator (Brazil)

What goes into the severance calculation?

• Salary balance: salary proportional to days worked in the last month
• Proportional vacation: (1/12 of salary per full month) + 1/3 constitutional bonus
• Proportional 13th salary: 1/12 of salary per full month of work
• Indemnified notice: 30 days + 3 days per year (max 90) — only for dismissal without just cause
• FGTS penalty: 40% of accumulated balance — only for dismissal without just cause

Brazilian CLT severance — how it works

Under the Brazilian Labour Code (CLT, arts. 477-485), the severance package depends on who terminated the contract and why. The same employee earning R$ 3,000/month with 2 years on the job can walk away with very different amounts:

• Dismissal without cause (employer initiative): salary balance + indemnified prior notice of 30 days + 3 extra days per year worked (Law 12,506/2011, capped at 90 days) + proportional 13th salary + proportional vacation + 1/3 constitutional bonus + full FGTS withdrawal + 40% FGTS penalty + unemployment insurance eligibility. Our example employee receives ~R$ 9,500.
• Resignation (employee initiative): salary balance + proportional 13th + proportional vacation + 1/3. No FGTS withdrawal, no 40% penalty, no unemployment insurance.
• Mutual agreement (Law 13,467/2017): half the prior notice and half the FGTS penalty (20%), 80% of FGTS may be withdrawn, no unemployment insurance.
• Dismissal for just cause (art. 482 CLT): only salary balance + vacation already accrued from prior period. No proportional vacation, no 13th, no FGTS access.

Brazilian context

The FGTS (Fundo de Garantia por Tempo de Serviço) is a monthly 8% deposit the employer makes into a worker's restricted account. It accumulates during employment and is released on dismissal without cause, retirement, serious illness or home purchase. The 40% penalty is paid by the employer on top of the accumulated FGTS balance, as an indemnity for unjustified dismissal.

FAQ

Is the prior notice always 30 days? No. Since Law 12,506/2011, the worker is entitled to 30 days plus 3 extra days per year of service, capped at 90 days total.

Are severance payments taxed? The salary balance, 13th and notice are subject to INSS and IRRF. Vacation pay + 1/3, FGTS and the 40% penalty are tax-exempt.

What is the homologation deadline? Payment must be made within 10 calendar days from the end of contract (art. 477 § 6º CLT). Late payment triggers a penalty of one month's salary in favour of the employee.

What if I'm fired during pregnancy or sick leave? Stability protections apply (gestante, CIPA member, accident leave) — dismissal without cause is void and reinstatement or indemnified stability is owed.