Labor Termination 2026: How to Calculate All Funds and Your Rights

Labour termination is one of the most sensitive moments in the professional life of any formal worker. Whether due to dismissal, resignation or agreement, it is essential to know what funds you are entitled to receive — and to know if the calculated values ​​are correct.

Errors in the severance calculation are more common than one might imagine: FGTS values ​​calculated on the wrong basis, incorrectly calculated indemnified notice, proportional vacations with an understated third, and many other distortions that harm the worker.

This guide details the complete calculation of each severance pay, with examples for the most common scenarios. Use our Employment Termination Calculator to simulate any situation.

Types of Termination and Funds for Each

The way the contract ends defines what funds are owed:

Termination Components: How to Calculate Each One

1. Salary Balance

The salary balance is the remuneration for the days worked in the month of dismissal (or in the month of paid notice).

Salary Balance = (Gross Salary ÷ 30) × Days Worked in the Month

Example: Dismissal on October 22nd, salary of $ 5.000,00:

• Saldo = ($ 5,000 ÷ 30) × 22 = $ 166,67 × 22 = $ 3,666.67

Included in the salary balance are: overtime, night shift pay, commissions and other additional payments for the period.

2. Prior Notice

Prior notice is the period of advance notice that either party must give to the other before ending the contract. Could it be:

• Previous Notice Worked: The worker continues with the company during the notice period. You normally receive your salary.
• Indemnified Prior Notice: The company waives compliance with the notice and pays the equivalent in cash.

Duration of Prior Notice

For the Labor Reform (Law 12,506/2011):

• Minimum: 30 days (for up to 1 year of company)
• • 3 days per year worked beyond the first (up to a maximum of 90 days)

Total Prior Notice = 30 + (3 × Additional Years)

Calculation of Indemnified Prior Notice

Prior Notice Compensation = (Gross Salary ÷ 30) × Days of Notice

Example: 3 years with the company, salary of $ 5.000,00:

• Aviso Prévio = 30 + (3 × 2 anos adicionais) = 36 dias
• Valor = ($ 5,000 ÷ 30) × 36 = $ 6,000.00

3. Proportional Vacation + 1/3

The worker is entitled to holidays proportional to the time worked in the current acquisitive period, plus the constitutional third:

Proportional Vacation = (Salary + Salary/3) × Months in the Acquisition Period ÷ 12

Example: 8 months in the acquisition period, salary of $ 5.000,00:

• Férias Proporcionais = ($ 5,000 + $ 1.666,67) × 8/12
• = $ 6,666.67 × 0.667 = $ 4,444.45

Attention: If the worker had expired vacations (previous acquisitive period completed but not taken), they are paid in double + 1/3.

4. 13th Proportional Salary

The 13th proportional is calculated on the months worked in the year of termination:

13th Proportional = Gross Salary × Months Worked in the Year ÷ 12

Rule: Months with 15 or more days worked count as a full month.

Example: Dismissal in August (8 months worked per year), salary $ 5.000,00:

• 13º Proporcional = $ 5,000 × 8/12 = $ 3,333.33

5. FGTS for the Period + 40% Fine

In unfair dismissal:

• FGTS to be withdrawn = Total balance accumulated in the FGTS account
• FGTS fine (40%) = 40% of the total FGTS balance deposited throughout the contract (paid by the employer)

FGTS Fine = Total FGTS Deposits in the Contract × 40%

In addition, the employer must deposit the FGTS for the months and termination funds (salary balance, indemnified notice, 13th and proportional vacations) into the FGTS account before withdrawal.

Complete Example of Termination without Just Cause

Situation:

• Worker hired on: 03/01/2022
• Date of dismissal: 08/22/2026
• Gross Salary: $5,000.00
• Time with the company: 4 years and 5 months
• Unjustified absences during the acquisition period: 0
• Holidays for the period 2022/2023 already taken ✅
• Vacations from the period 2024/2025 not taken ❌ (expired vacation)
• Holidays for the period 2025/2026: 5 months in the new period

Calculation:

FGTS fine: Over ~4 years and 5 months of FGTS (estimated: $ 25.000 de saldo) → 40% = $ 10,000.00 (paid by the company, not taken from salary)

Discounts (INSS + IR on taxable funds): Calculated separately on each amount.

Termination Payment Deadlines

Payment of severance pay must be made within the following deadlines after the contract termination date:

Failure to comply with the deadline generates a fine for the employer equivalent to the worker's salary.

The TRCT: Term of Termination of the Employment Contract

The TRCT is the formal document that records and details all severance pay. It must be:

1. Filled in by the employer with the values of each amount
2. Signed by the employee (but not before checking all values)
3. Approved (for contracts longer than 1 year, approval was mandatory — but was eliminated by the 2017 Labor Reform)

Right to check before signing: The worker has the right to analyze the TRCT before signing. Signing the TRCT without checking the values ​​does not mean that the worker gives up the opportunity to challenge them in court — but it makes the process more difficult.

Frequently Asked Questions (FAQ)

1. If the company fires me without just cause, how much notice am I entitled to? The minimum notice is 30 days for up to 1 year of employment. For each year beyond the first, 3 days are added, up to a maximum of 90 days (for 20 or more years of business). For example, 5 years with the company = 30 + (4 × 3) = 42 days of notice.

2. What is the "mutual agreement" of termination (art. 484-A of the CLT)? Mutual agreement is a type of termination in which the employer and employee agree to the end of the contract. In this case, the advance notice is 15 days (half), the FGTS fine is 20% (half), the worker can withdraw 80% of the FGTS and can request unemployment insurance (depends on specific regulations in force).

3. How is the termination calculation for workers with regular overtime? Overtime paid for more than 3 months is part of the remuneration for termination purposes. The average HE of the last 12 months must be added to the base salary to calculate: salary balance, notice, proportional vacation, proportional 13th and FGTS calculation base.

4. Can I challenge the TRCT values if I think they are wrong? Yes, even after signing the TRCT, the worker can question the values in the Labor Court. The statute of limitations for labor claims is 2 years after the end of the contract (or up to 5 years for older funds still within the contract). Keep all payslips, FGTS statements and a copy of the TRCT.

5. Does the notice period counted during the company's time affect other calculations? Yes. The paid notice is included in the length of service for the purposes of calculating proportional and 13th proportional vacations. This means that if you are fired in August with 42 days' notice, the months of September and part of October are included in the calculation of proportional vacation and the 13th.

6. What are the termination funds subject to IRRF? Salary balance and indemnified notice are normally taxable by IRRF. Holidays (including proportional and double holidays) are taxable. The 13th proportional has IRRF calculated separately. The 40% FGTS fine and the FGTS balance itself are exempt from IR.

7. Can the company deduct lack of prior notice from severance pay? Yes. If the worker resigns and does not comply with the notice period (30+ days), the employer can deduct the amount equivalent to the notice from the severance pay. However, the discount cannot make the worker "owe" the company — there is a discount limit.

8. Termination due to resignation has a discount on prior notice — how does it work? If the worker resigns but the company waives the notice, the worker does not receive compensation. If the company demands compliance and the worker fails to comply, they may have the equivalent of notice deducted from severance pay. If the worker serves the notice normally, he or she receives the salary for the period worked during the notice.

Simulate Your Termination Now

Our calculator faithfully replicates all labor calculations for different termination scenarios.

Access the Labor Termination Calculator — enter the type of termination, salary, time with the company and vacation status to receive the complete simulated TRCT.

Related calculators:

• Unemployment Insurance Calculator — calculate the installments after dismissal
• FGTS Calculator — see the accumulated balance and the 40% fine
• Prior Notice Calculator — simulate proportional notice
• CLT Vacation Calculator — calculate accrued and proportional vacations