Types of Labor Calculation in Brazil

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When it comes to labor law often lack of knowledge makes the employer take the wrong business decisions and run the risk of receiving processes of its employees for poor performance of their duties.

That is why it is essential to know the main labor laws and know how to make the most essential labor calculations:

1. Termination of Employment Contract - CLT

This is the most important labor calculation for the financial health of your company. I say this because when calculating the termination of the employment contract, depending on the modality, the company will have to make payments that can be quite high.

With regard to the types of termination, it is worthwhile to understand the following:

  • Resignation
  • Resignation for just cause
  • Resignation without cause
  • Indemnified / worked prior notice

Depending on the type of termination, the payment of monthly salaries, expired and proportional vacations, the thirteenth proportional amount, the prior notice, the FGTS and the fine will be included in this labor calculation, so stay tuned.

2. Additional Night

Although it may seem a little more practical and may not have much influence on your financial calculation of the additional night shift of employees is very important as well. I say this because there are some rules that not everyone knows:

  • Overnight surcharge is required by law
  • The night time considered goes from 22h to 5h
  • The remuneration of the night worker shall receive an increase of at least 20% in relation to the daytime
  • For work purposes, the night time is 52 minutes 30 seconds

All these items make the employee who works within the stipulated period have a better pay and work a little less. If an employer does not know or practice these rules, it can be easily processed in labor court. Here in LUZ we have the Excess Hours Calculation Worksheet which assists in this activity.

Labor Calculation - Night Extra

3. Extra Time Calculation

It is undeniable that on a day to day basis it is necessary to work outside the stipulated working hours at one time or another. This is normal and will always happen. The problem is when these hours of work are not counted or paid to the worker.

Although mandatory, it is not every company that gives attention to this labor calculation and understands all the main points that influence the calculation of the overtime. So, know that:

  • The CLT foresees a maximum of 220 hours worked monthly
  • Extra time on a normal day has 50% added (if the normal paid hour value is $ 10, the extra hour will be $ 15)
  • Extra time on days that the employee would not normally work (Saturdays, Sundays and holidays) is 100%
  • The payment of overtime must be paid monthly (except in cases where the company adopts hour bank)

To know everything about it, see the post How to Calculate Overtime in Excel, which is more detailed and shows calculation examples.

4. Holidays Calculation of Employees

This is one of the most labor-intensive calculations in employers and employees. To begin with, although it is obvious, it is important to mention that paid leave is an employee right, and because it is a matter of public safety standards, it can not be waived.

See our post Employee vacations: what can and can not to understand more about the main items (which are very complex and require a good explanation). To summarize this part of the vacation labor calculation, I will list some important items:

  • The worker can "sell" up to 10 days of his vacation, this is called vacation allowance
  • The employee is entitled to 30 holiday days if 5 is missing or less times in the period (even without justification for these absences)
  • Holidays must be taken in a single time on a rolling day or be split in 2 periods with at least 10 days in one of them and the rest in the other
  • The holiday pay is the employee's salary plus 1 / 3 plus, thus receiving 4 / 3 of the salary in that period

In the case of vacation pay, it is worth extra care from the employer, because even if the employee wants to sell more than 10 days of his vacation, by law the employer can not carry out such a procedure, being subject to legal proceedings in the future.

Labor Calculation - Employee Vacations

5. Types of Labor Calculation of a Payroll

In addition to the most important 4 types of labor calculation I have just shown, there are a number of other calculations that will be present in a good payroll tool:

  • FGTS Calculation
  • IRRF calculation
  • INSS calculation
  • Calculation Net Salary
  • Thirteenth Calculation
  • Calculation of Annual Salary

In spite of this list with the most important types of calculations that appear on the payroll, it is necessary to say that the calculations of labor are not limited to those listed.

Important Tips

Keep a record of all these items. The proof obligation is always the employer, so do not neglect and have a file with them against checks (payslips) signed its employees, as well as a record of all kinds of labor calculation you might need to do.

If 100 is not safe for one information or another, make sure you check with your accountant. It is your duty to understand the labor calculations and to assist you in this process.

To get more questions about payroll, talk to more entrepreneurs who already master the subject better.

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Administrator and turismologist, passionate about the possibilities that Excel gives to managers, entrepreneurs and students. He is the managing partner of the spreadsheet department at LUZ - Spreadsheets (luz.vc) and is responsible for the development of spreadsheets with business and personal focus commercialized in its website. He also teaches online Excel courses (cursos.luz.vc) and likes to help thousands of planners through the LUZ Forum and Blog.


  1. Hi James,

    you commented in a post that does not say anything about the additional unhealthiness. I imagine you got confused at the time of putting your doubt, but you're correct, the additional unhealthiness is on the minimum wage. I will correct the post that is in this wrong calculation

  2. Good evening, very well explained text, however I have a question, in the second example of calculation of hazard pay, you used as a basis for calculating the basic salary should not be the least ??


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