How Brazilian severance (rescisão) works
When an employment contract under Brazil's CLT ends, the employer must pay a set of termination items called verbas rescisórias. What the worker receives depends mainly on who ended the contract and why. This calculator applies the 2026 rules and shows every item with its formula, so employees, HR teams and foreign companies hiring in Brazil can check the numbers.
What is paid in each type of termination
| Item | Without cause | Resignation | Agreement (484-A) | For cause |
|---|---|---|---|---|
| Salary balance | Yes | Yes | Yes | Yes |
| Notice paid in lieu | Yes (30–90 days) | No | Half | No |
| Pro-rata 13th salary | Yes | Yes | Yes | No |
| Accrued vacation + 1/3 | Yes | Yes | Yes | Yes |
| Pro-rata vacation + 1/3 | Yes | Yes | Yes | No |
| FGTS withdrawal | 100% | No | 80% | No |
| FGTS penalty | 40% | No | 20% | No |
| Unemployment insurance | Yes | No | No | No |
How each item is calculated
- Salary balance: salary ÷ 30 × days worked in the last month.
- Notice (aviso prévio): 30 days + 3 per full year, up to 90. When paid in lieu, the notice days are added to the contract for 13th salary and vacation purposes.
- 13th salary: 1/12 of pay per month of the year with 15 or more days worked.
- Vacation: accrued periods plus 1/12 per month of the current period, each with a constitutional bonus of one third. Overdue vacation is paid double.
- FGTS: the employer deposits 8% of pay every month. On dismissal without cause it adds a 40% penalty on the total deposited.
Averages of overtime, commissions and night premium count toward notice, 13th salary and vacation. Most simple calculators ignore this.
Deductions in 2026
INSS (social security) is charged progressively from 7.5% to 14%, with a ceiling of R$ 8,475.55. Income tax follows the monthly table, but Law 15,270/2025 reduces the tax to zero for taxable income up to R$ 5,000 and partially up to R$ 7,350. Notice paid in lieu and indemnified vacation are exempt from both.
Worked example
An employee hired on 01/03/2023 and dismissed without cause on 15/09/2026, with notice paid in lieu and a salary of R$ 3,000:
- Notice: 3 full years → 39 days = R$ 3,900.00
- Salary balance: 15 days = R$ 1,500.00
- 13th salary: 9/12 + 1/12 from the notice projection = R$ 2,500.00
- Pro-rata vacation 8/12 + 1/3 = R$ 2,666.67
- INSS: R$ 313.18. Income tax: zero.
- Net severance: R$ 10,253.49, plus the FGTS balance with the 40% penalty and 5 unemployment insurance installments of R$ 2,166.65.
Frequently asked questions
How long does a Brazilian employer have to pay severance?
What does an employee get when dismissed without cause in Brazil?
How is the Brazilian notice period calculated?
Is severance in Brazil taxed?
What is the 40% FGTS penalty?
What is a mutual agreement termination (484-A)?
Legal basis: CLT (arts. 130, 137, 477, 479, 480, 483, 484-A, 487), Law 12,506/2011, Law 8,036/1990, Law 13,932/2019, LC 150/2015, Law 15,270/2025, TST Precedent 14. Dates use the Brazilian day/month/year format.