13th salary: deadlines for both installments and prorated calculation

The 13th salary (a Brazilian year-end bonus equal to one month's pay) is paid in two installments with deadlines fixed by law. With the end of the year coming, it's worth checking the dates and the calculation for people who didn't work the whole year.

The deadlines

• 1st installment (advance): between February and November 30, worth half of the previous month's salary (Law 4,749/1965, art. 2). The person can ask to receive it with their vacation, if they ask in January.
• 2nd installment: by December 20 (Law 4,749/1965, art. 1), minus the advance.

How to calculate the amount

The 13th salary is 1/12 of December's remuneration per month worked in the year (Law 4,090/1962, art. 1, § 1). A month with 15 days or more of work counts in full (§ 2).

Example: hired mid-year

A person hired on May 10, with a salary of R$3,600.00:

1. May counts in full (22 days worked), so it's 8 months: May to December.
2. Prorated 13th salary: R$3,600.00 × 8 ÷ 12 = R$2,400.00
3. 1st installment: half, R$1,200.00, with no deductions.
4. 2nd installment: R$2,400.00 − R$1,200.00 − INSS − IRRF.

Averages of habitual overtime, commissions and premiums go into the base. It's the kind of calculation that goes wrong when the spreadsheet only keeps the fixed salary.

Deductions in each installment

• 1st installment: no INSS and no income tax. FGTS is deposited in the month of payment.
• 2nd installment: INSS and income tax calculated on the full 13th salary, separately from December's salary; FGTS on the difference.

November checklist

• Check who was hired or went on leave during the year.
• Include the averages of habitual variables.
• Schedule payment before the weekends of the deadlines.
• Tell people the date of each installment.