The calculation of employees' vacation is an essential obligation for any company that wants to comply with labor legislation and ensure team satisfaction. However, many managers still have doubts about how to carry out this process correctly.

If you want to understand how to calculate vacation clearly and without errors, this guide is for you. We will explore what the legislation says about the subject, the main components of the calculation, and best practices to avoid future problems.

What does the legislation say about vacation?

According to the Consolidation of Labor Laws (CLT), every employee with at least 12 months of work in the company is entitled to 30 days of paid vacation. This period can be divided into up to three parts, provided that one of the fractions has at least 14 consecutive days and the other two are no shorter than five days.

In addition, the employer has a period of up to 12 months after the acquisition period to grant vacation to the worker. If this does not happen, the company will be subject to a double payment of the corresponding amount.

Components of the vacation calculation

The calculation of vacation takes into account the following factors:

1. Gross salary: The basis for the calculation of vacation is the gross salary of the employee.

2. One-third additional: The Federal Constitution guarantees the worker an additional 1/3 on the value of the vacation.

3. Discounts: INSS and Income Tax Withheld at Source (IRRF), when applicable.

4. Overtime and commissions: If the employee receives additional for overtime or commission, the average values of the last 12 months must be considered in the calculation.

5. Unjustified absences: The employee may lose part of the vacation days if there are unjustified absences in the acquisition period.

Step-by-step to calculate vacation

1. Calculate the base amount

   • Take the gross salary of the employee.

2. Add the constitutional 1/3

   • Example: For a salary of R$3,000, the vacation additional is R$1,000 (3,000 / 3).

   • Gross salary + additional: R$3,000 + R$1,000 = R$4,000.

3. Discounts

   • INSS: Applies as per the current table.

   • IRRF: Depending on the salary range, Income Tax will also be deducted.

4. Final vacation amount

   • Amount after discounts = Salary + 1/3 - INSS - IRRF.

5. Payment of the vacation additional

   • If the employee opts to sell up to 10 days of vacation (pecuniary bonus), the company must pay the proportional amount for those days, plus the constitutional 1/3.

Practical example of calculation

Let’s consider an employee with a gross salary of R$3,000 and no discounts for INSS or IRRF.

1. Salary: R$3,000

2. One-third additional: R$1,000

3. Total amount: R$4,000

If he sells 10 days of vacation:

1. Calculation of the pecuniary bonus: (3,000 / 30) x 10 = R$1,000

2. One-third additional on the bonus: R$1,000 / 3 = R$333.33

3. Total to receive: R$4,000 + R$1,333.33 = R$5,333.33

Common mistakes in vacation calculation

1. Not considering overtime and commissions: These amounts need to be included in the salary average.

2. Incorrect discounts: Wrong calculations of INSS and IRRF can lead to problems with the Federal Revenue Service.

3. Late payment: Vacation must be paid up to two days before the start of the rest period.

4. Error in calculating the pecuniary bonus: Some companies forget to add the additional 1/3.

How to avoid problems and optimize vacation management?

1. Automate the process: Use payroll software that already performs calculations automatically.

2. Plan ahead: Avoid the accumulation of expired vacation and ensure an adequate distribution of days off.

3. Count on specialists: If you need support for the labor management of your company, count on Beorange. Our specialists help you maintain legal compliance and avoid unnecessary fines.

Need help calculating your employees' vacations?

Correctly managing the vacation calculation is essential for maintaining the regularity of your company and ensuring the satisfaction of your employees.

If you want to avoid mistakes and have a professional solution for payroll management, talk to Beorange right now and have peace of mind in your administration!