How to Calculate Severance Pay in Brazil (Rescisão) in 2026: Step by Step

September 29, 2026

"Rescisão" is the final settlement when a Brazilian employment contract (CLT) ends. The amount depends on three things: why the contract ended, how long you worked there and your salary. This guide shows what is due in each case, how each item is calculated and a complete example with 2026 figures.

What is due for each kind of termination

Item	Dismissal without cause	Resignation	Mutual agreement (art. 484-A)	Dismissal for cause
Balance of salary	Yes	Yes	Yes	Yes
Notice paid in lieu	Yes	No	Half	No
Proportional 13th salary	Yes	Yes	Yes	No
Overdue vacation + 1/3	Yes	Yes	Yes	Yes
Proportional vacation + 1/3	Yes	Yes	Yes	No
FGTS fine	40%	No	20%	No
FGTS withdrawal	100%	No	80%	No
Unemployment insurance	Yes*	No	No	No

* If the worker meets the programme's minimum working-time requirements.

Step by step

1. Balance of salary

The days worked in the last month: salary ÷ 30 × days worked. Someone earning R$ 3,000 who leaves on the 15th gets R$ 1,500.

2. Notice

Under Law 12,506/2011, notice is 30 days plus 3 days for each full year worked, up to 90 days. When it is paid in lieu (the employer lets you go without working it), it is worth salary ÷ 30 × notice days. Notice paid in lieu also extends the contract on paper: those days count towards the 13th salary and proportional vacation.

3. Proportional 13th salary

You earn 1/12 of the salary for each month worked in the year – a month counts when you worked 15 days or more in it, including the notice extension.

4. Vacation

Overdue vacation (a full 12-month period not yet taken) and proportional vacation (1/12 for each month of the current period, with 15 days or more counting as a full month) are both paid, each with the constitutional one-third bonus.

5. FGTS and the fine

The employer deposits 8% of the salary every month. On dismissal without cause it pays a fine of 40% of everything deposited during the contract (with interest), and you can withdraw the whole balance. In a mutual agreement the fine is 20% and you withdraw 80%.

6. Deductions

Social security (INSS) is charged on the balance of salary and, separately, on the 13th salary, using the progressive table; income tax follows the same logic. Notice paid in lieu and vacation paid out (with the one-third) carry neither INSS nor income tax.

Worked example

Salary of R$ 3,000, hired on 1 March 2023, dismissed without cause on 15 September 2026, notice paid in lieu, no overdue vacation. With 3 full years the notice is 39 days, which moves the end of the contract to 24 October 2026.

Item	Amount
Balance of salary (15 days)	R$ 1,500.00
Notice paid in lieu (39 days)	R$ 3,900.00
Proportional 13th salary (10/12)	R$ 2,500.00
Proportional vacation (8/12)	R$ 2,000.00
One-third vacation bonus	R$ 666.67
(−) INSS (balance and 13th)	R$ 313.19
Net total	R$ 10,253.48

On top of that comes the FGTS: with about R$ 12,330.97 deposited during the contract, the 40% fine is roughly R$ 4,932.39 and the total withdrawal about R$ 17,263.36. Your real balance is in the FGTS app – use it for an exact figure.

Payment deadline

The employer has up to 10 calendar days after the contract ends to pay and hand over the documents, whatever the kind of notice (art. 477 of the CLT). Late payment costs it a fine equal to one salary.

Common mistakes

Forgetting the notice extension – it often adds 1/12 or 2/12 to the 13th salary and vacation.
Leaving out averages – regular overtime, commissions and allowances are part of the base for every item.
Working out the fine on today's balance – the fine is on everything deposited, even if you have already made withdrawals.
Forgetting overdue vacation – a full period not taken is paid with its one-third.

Run your own numbers

The severance calculator applies all of these rules – kind of termination, notice worked or paid, overdue vacation, averages, INSS, income tax and the FGTS fine. To see the fund's balance month by month, use the FGTS calculator.

This guide is for information only. Collective agreements may add rights; check the termination form (TRCT) and, if in doubt, ask the union or a labour lawyer.

More guides

How to Organise a Secret Santa Online: Rules, Budget and a Fair Draw