# Learn how to calculate termination payments!

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It is completely common for employees to be laid off in companies, regardless of their segment. The dismissal can be motivated by different factors, however, it will always involve **calculating the termination** .

Ensuring that this calculation was carried out correctly is essential to guarantee mutual rights. It is made up of rules and some criteria, after all, not all terminations require this to be carried out.

## **How is the termination calculation done?**

The dismissal of an employee is a bureaucratic process for all parties, among the bureaucracy that must be carried out is the calculation of the termination.

In order for this to be verified, firstly, it is necessary to know the type of dismissal in question, this factor directly influences the calculation and its mandatory nature.

Once the type of dismissal has been identified, it is important to know the employee's labor rights at that time, in order to ensure that they are respected, including the discount amounts that will be applied to the calculation.

What can help during this process is the use of technology. Currently, some software is available to reduce the time spent on the bureaucracy of a termination and make it easier.

Despite the possibility of automating the calculation, it can be done with some formulas and in some steps, which make up the total value of the termination.

### **How to calculate salary balance?**

The salary balance is made up of the amount equivalent to the monthly salary and the number of days worked during the month in which the dismissal occurred.

To find the balance value, you need to divide your monthly salary by the number thirty, and then multiply this result by the number of days worked in that month.

### **How are vacations calculated?**

In the case of accrued vacations, the constitutional thirteenth must be included, therefore, multiplying the monthly salary by the thirteenth, added to the value of the monthly salary, results in accrued vacations.

The thirteenth must be proportional to the months worked by the employee and has its own calculation, where the number of months worked in the year is multiplied by dividing the monthly salary value by the number twelve.

While proportional vacations should only be calculated when the employee has not completed the acquisition period of the contract , and therefore will receive proportional vacations.

Its calculation consists of adding the value equivalent to the vacation, with the result of dividing the number of months worked by the employee by the number twelve.

### **How does the compensated notice period work?**

The total amount of the advance notice will depend on the number of years the employee has worked at the company, therefore, the calculation varies depending on this information ; for each year worked, three days are added to the calculation.

Therefore, to calculate the compensated notice period, it is necessary to multiply the number of years worked by three and then add the result to the number thirty, the result of the sum will be multiplied by the value equivalent to one day's work.

### **How is FGTS calculated?**

The FGTS is discounted monthly, where the contribution is equivalent to eight percent of that employee's monthly salary. After finding this value, it is multiplied by the number of months worked, in order to find the total value of the contribution.

The calculation of the forty percent fine is summarized by multiplying the total value of the contribution by forty percent.

### **What is the total value of the termination?**

Finally, to find out the total value of the contract termination, simply add up all the values found in the previous calculations, that is, the salary balance, accrued and proportional vacations, the thirteenth salary, the compensated notice period, the FGTS and its forty percent fine.

All of these amounts have deadlines for payment by the company, which are usually ten calendar days from the end of the contract.

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