Tax
Calculate your 13th salary (décimo terceiro) including INSS and IRRF deductions
Calculate both installments of your Brazilian 13th salary with proper tax deductions
The 13th salary, known as 'Décimo Terceiro Salário' in Portuguese, is an annual bonus paid to employees in Brazil in addition to their 12 regular monthly salaries. This mandatory benefit amounts to one full month's salary and is required by Brazilian labor law for all employees with a formal work contract. The 13th salary originated from a 1962 law and has become a fundamental part of the Brazilian compensation system. It is typically paid in two installments: the first between November and December, and the second by December 20th, ensuring workers have extra funds for holiday expenses and year-end celebrations.
The 13th salary is calculated based on an employee's average income over the year or their current salary, whichever is applicable. For employees who worked the entire year, it equals one full monthly salary. For those who joined mid-year, it's calculated proportionally—one-twelfth of the monthly salary for each month worked. Income tax is withheld from the 13th salary payment, and employers must deposit the amount into the employee's account. The calculation considers the employee's base salary but may exclude bonuses and commissions depending on the employment contract terms.
13th Salary = (Monthly Salary × Months Worked) ÷ 12. If annual payment: 13th Salary = Monthly Salary × 1. Income tax is then applied to the gross 13th salary amount before paying the net amount to the employee.
The 13th salary is usually paid in two installments. The first installment (50%) is typically paid between November 1st and November 30th, and the second installment (50%) must be paid by December 20th. However, some employers may pay it entirely in December if agreed upon in the employment contract.
Yes, income tax is withheld from the 13th salary based on the employee's total annual income and tax brackets. The withholding is calculated proportionally to the employee's salary. Additionally, INSS contributions (social security) are also deducted from the 13th salary.
If you leave your job mid-year, you're entitled to a proportional 13th salary. The calculation is based on the number of months you worked in that year, divided by 12, and multiplied by your monthly salary. This is paid along with your final paycheck.
The 13th salary is typically calculated based on your base salary. However, if you received bonuses or commissions throughout the year and they are considered part of your regular compensation, they may be included in the 13th salary calculation. This varies based on your employment contract terms.
