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The 13th salary and the vacation bonus: 13.33 salaries a year

Last verified: 2026-10-27 · Status: Stable

Abroad, an annual salary is usually paid in 12 installments and a holiday bonus is a matter of contract; in Brazil the law adds a 13th salary each December and a vacation bonus of one third of a monthly salary. The 13th salary is paid in two installments, half between February and November and the balance by 20 December, and is part of the FGTS base. Every employee earns 30 calendar days of paid vacation after 12 months, which must be granted within the next 12 months or paid double.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.3346 per US dollar for 27 October 2026. Conversions are for orientation only.

Key facts

Statutory 13th salary	1 monthly salaryLei nº 4.090 art. 1, as of 2026-10-27 · in force
Deadline for the 13th salary	20 December dateLei nº 4.749 art. 1, as of 2026-10-27 · in force
Annual paid vacation	30 calendar daysCLT art. 130, as of 2026-10-27 · in force
Vacation bonus over normal salary	33.33 %Constitution art. 7 item XVII, as of 2026-10-27 · in force
Pay for vacation granted after the 12 month window	Double CLT art. 137, as of 2026-10-27 · in force
Statutory salaries per year (12 plus 13th plus vacation third)	13.33 monthly salariesLei nº 4.090 art. 1; Constitution art. 7 item XVII, as of 2026-10-27 · in force

The rule

1. Every employee receives a Christmas bonus (13th salary) in December equal to 1/12 of December pay for each month of service in the year; 15 days or more of work in a month count as a full month. It is also due pro rata on dismissal without cause, at the end of a fixed term contract and on retirement.
Cost to do it: One extra month of pay per year of service.
Example: Salary of R$10,000 a month: 13th salary of R$10,000. / About US$1,875.Lei nº 4.090 of 13 July 1962; Constituição Federal art. 7 item VIII, Lei nº 4.090 arts. 1 §§ 1 to 3 and 3, 1962-07-13 official text · verified 2026-10-27

2. The 13th salary is paid by 20 December. Between February and November the employer pays, in one installment, an advance of half of the previous month's salary; it need not pay all employees in the same month, and must pay it with vacation if the employee asked in January.
Cost to do it: Cash flow: two payments in the second half of the year for most employers.
Example: Advance of R$5,000 by 30 November and balance by 20 December, less the employee's own withholdings. / About US$937 per installment before withholdings.Lei nº 4.749 of 12 August 1965, Arts. 1 and 2 §§ 1 and 2, 1965-08-12 official text · verified 2026-10-27

3. The employer's 8 percent monthly FGTS deposit is calculated on pay including the 13th salary.
Cost to do it: 8 percent of the 13th salary.
Example: FGTS of R$800 on a 13th salary of R$10,000. / About US$150.Lei nº 8.036 of 11 May 1990, art. 15 as worded by Lei nº 14.438 of 24 August 2022, Art. 15 caput, 2022-08-24 official text · verified 2026-10-27

4. After each 12 months of the contract, the employee is entitled to 30 calendar days of paid vacation (fewer only with more than 5 unjustified absences: 24, 18 or 12 days), paid with at least one third more than normal salary.
Cost to do it: One third of a monthly salary on top of normal pay for the vacation month.
Example: Vacation pay of R$10,000 plus a one third bonus of R$3,333.33. / About US$1,875 plus US$625.Consolidação das Leis do Trabalho (CLT), arts. 129 and 130 as worded by Decreto-Lei nº 1.535 of 13 April 1977; Constituição Federal art. 7 item XVII, CLT arts. 129 and 130; Constitution art. 7 item XVII, 1977-04-13 official text · verified 2026-10-27

5. The employer sets the vacation dates within the 12 months after the right is acquired; with the employee's consent it may be split into up to three periods, one of at least 14 days and the others at least 5 days, and may not start in the two days before a holiday or weekly rest day. Vacation granted late is paid double.
Cost to do it: Double vacation pay if the 12 month window is missed.
Example: Vacation granted late: R$26,666.67 instead of R$13,333.33. / About US$4,999 instead of US$2,499.CLT, art. 134 § 1 as worded by Lei nº 13.467 of 13 July 2017; art. 137, Art. 134 caput and §§ 1 and 3; art. 137, 2017-07-13 official text · verified 2026-10-27

6. The employee may convert one third of the vacation into cash (abono), requested up to 15 days before the end of the accrual period. Vacation pay and any abono are paid at least 2 days before the vacation starts.
Cost to do it: Payment 2 days before the vacation starts, a cash flow point for payroll.
Example: Selling 10 days of a R$10,000 salary: about R$3,333.33 more cash, with 20 days of rest. / About US$625.CLT, arts. 143 and 145 as worded by Decreto-Lei nº 1.535 of 13 April 1977, Art. 143 caput and § 1; art. 145, 1977-04-13 official text · verified 2026-10-27

Item	Amount (BRL)	Amount (USD)	Basis
12 monthly salaries	R$120,000	US$22,495	Contract
13th salary	R$10,000	US$1,875	Lei nº 4.090 art. 1
Vacation one third bonus	R$3,333.33	US$625	Constitution art. 7 item XVII
FGTS 8 percent on all of the above	R$10,666.67	US$2,000	Lei nº 8.036 art. 15
Total	R$144,000	US$26,994

Statutory annual pay for a R$10,000 monthly salary, before payroll charges.

Worked example

A foreign company offers a Brazilian hire what it thinks is an annual package of R$120,000 (about US$22,495), R$10,000 a month. By law it will actually pay R$133,333.33 (about US$24,994): 12 salaries, the 13th salary and the one third vacation bonus, plus FGTS of 8 percent on those amounts, before social security contributions. Offers abroad quoted as an annual figure should be divided by 13.33, not 12, to keep the same total cost.

Step by step

1. Quote Brazilian salaries monthly and budget 13.33 salaries a year plus charges.
2. Pay the first 13th installment between February and November and the balance by 20 December.
3. Track each employee's accrual period and schedule vacation within the following 12 months.
4. Pay vacation and the one third bonus at least 2 days before the vacation starts.
5. Include the pro rata 13th salary and accrued vacation with its one third in final pay on termination.

Common traps

An annual salary agreed abroad and divided by 12 underpays the statutory 13th salary and vacation bonus.
Vacation not granted within 12 months of being earned is paid double (CLT art. 137).
Starting vacation on a Thursday before a Saturday rest day or holiday is not allowed (CLT art. 134 § 3).
The 13th salary is part of the FGTS base (Lei nº 8.036 art. 15).

Sources

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