Understanding Brazil's 13th Salary: Eligibility Requirements

Brazil's 13th salary, known as "décimo terceiro salário," is a mandatory year-end bonus for eligible workers. This benefit serves as additional compensation for employees who have maintained consistent employment throughout the year.

Employees under CLT contracts (Consolidação das Leis do Trabalho) qualify for this benefit after completing at least 15 days of work during the calendar year. However, workers terminated for cause lose their entitlement to the 13th salary payment.

Eligible Worker Categories

Private sector employees and civil servants governed by CLT regulations
Retirees and pensioners registered with the National Social Security Institute (INSS)
Rural workers, domestic employees, and temporary workers under union-mediated agreements

Interns and self-employed professionals typically don't qualify for this benefit since their working relationships fall outside CLT jurisdiction.

CLT Contract Requirements

To establish a valid CLT relationship, these fundamental conditions must be met:

Individual Identity: Worker must be a natural person, not a legal entity
Personal Nature: Work must be performed personally without substitution
Continuity: Employment must be regular and ongoing
Economic Dependency: Worker receives stable compensation indicating financial reliance
Subordination: Employee follows employer's rules and directives

13th Salary Payment Regulations and Calculations

Payment Schedule

Employers must distribute the 13th salary in two installments:

First Installment: Between February 1st and November 30th
Second Installment: By December 20th

When payment deadlines fall on weekends or holidays, employers must advance payments accordingly. Late payments incur legal penalties, including substantial fines. Employees taking extended leave may request early disbursement of the first installment.

Calculation Methodology

The 13th salary calculation incorporates the employee's total monthly earnings throughout the year, including bonuses, overtime compensation, and commissions. Employers deduct applicable taxes from the second installment, covering social security (INSS) and income tax (IR) obligations.

Key Calculation Considerations

Authorized absences and justified leave don't affect 13th salary eligibility. However, excessive unexcused absences (17 days in 31-day months, 16 days in 30-day months, or 14 days in 28-day months) disqualify employees from that month's proportional benefit
Additional compensation elements like overtime premiums, night shift differentials, and hazardous duty allowances factor proportionally into the calculation
For extended medical leaves exceeding 15 days, INSS assumes responsibility for the 13th salary payment from the 16th day onward
Employers can deduct maternity leave-related 13th salary portions from social security contributions, with specific exceptions
Employees hired by January 17th receive the full second installment equivalent to December's salary, minus the first installment and applicable deductions

Tax and Contribution Implications

INSS contributions apply to the total 13th salary amount
FGTS (Service Time Guarantee Fund) calculations use the gross December payment minus any advanced amounts
Income tax withholding follows progressive monthly tables applied to the combined first and second installments

Non-compliance with 13th salary regulations results in significant penalties, starting at 160 Ufir per affected employee, with doubled fines for repeat violations.

International HR Perspective: Best Practices

For global companies like SailGlobal operating in Brazil, understanding these regulations is crucial for compliance and employee satisfaction. Many multinational corporations implement additional year-end bonuses beyond statutory requirements to enhance retention and motivation.

Case studies show that companies providing transparent communication about bonus calculations and timelines experience higher employee trust and reduced compliance issues. Regular audits and updated payroll systems help ensure accurate compliance with Brazil's complex labor regulations.

Brazil 13th Salary Guide: Eligibility, Calculation & Payment Rules 2024