In Brazil, the concept of the ‘décimo terceiro salário’ or ’13th salary’ is a well-established labor right, eagerly awaited by millions of workers at the end of each year. It is an additional salary paid annually, usually divided into two installments, and plays a crucial role in the financial planning of employees. Understanding when the 13th salary is paid and how it is calculated is important not only for workers but also for employers, HR professionals, and anyone dealing with payroll processing in Brazil. The schedule of payment, common deadlines, and implications for taxes and budgeting make this topic both relevant and necessary.
What Is the Décimo Terceiro Salário?
Definition and Purpose
The décimo terceiro salário is an annual bonus payment equivalent to one month’s salary, guaranteed to all formally employed workers in Brazil. Established by law in 1962, it serves as an end-of-year financial boost and is typically used to pay off debts, buy gifts for the holidays, or support year-end expenses like travel and taxes.
Who Is Eligible?
All employees working under Brazil’s Consolidation of Labor Laws (CLT) are entitled to receive the 13th salary, including domestic workers, public servants, and those on temporary or part-time contracts. Even employees who have not worked the full year will receive a proportional amount based on the months worked.
When Does the Décimo Terceiro Fall Due?
Key Deadlines for Payment
The payment of the décimo terceiro salário is made in two installments:
- First installment: Must be paid between February 1 and November 30 of the current year.
- Second installment: Must be paid by December 20 at the latest.
Employers who fail to comply with these dates may face penalties and complaints filed with the Ministry of Labor. It is important to note that many companies choose to pay the first part in November and the second part closer to Christmas, which is why many workers often ask, Décimo terceiro, quando cai? meaning When does the 13th salary drop?
Common Company Practices
Although the law provides a wide window for the first installment, most employers follow a traditional schedule:
- First half paid along with November’s monthly salary or earlier
- Second half paid during the first or second week of December
Some employees also request the first installment earlier, such as during their annual vacation period. In that case, it’s added to their vacation pay and must be requested in advance.
How Is the 13th Salary Calculated?
Basic Calculation
The full 13th salary equals one twelfth (1/12) of the employee’s monthly salary for each month worked. If a worker has worked the entire year, they receive the full salary as a bonus. If they worked only part of the year, the payment is proportional. To qualify for a month, the employee must have worked at least 15 days during that month.
Example:
- Monthly salary: R$3,000
- Months worked: 8
- 13th salary = (3,000 ÷ 12) à 8 = R$2,000
Deductions and Taxes
The first installment is paid without any deductions. The second installment, however, is subject to income tax and social security (INSS) contributions. These deductions are calculated on the total amount of the bonus and applied only during the second payment.
Importance of the Décimo Terceiro
For Employees
The 13th salary serves as a significant financial cushion for most Brazilian workers. It helps them cover increased holiday expenses, settle debts, or save for upcoming obligations such as school fees and annual taxes. In economic terms, it also boosts consumer spending at year-end, which stimulates the economy.
For Employers
Businesses must plan carefully to ensure they meet their legal obligations without jeopardizing cash flow. Many companies establish internal funds or make monthly provisions to avoid a financial crunch in November and December. Payroll departments often begin preparations several months in advance.
What Happens If an Employer Misses the Deadline?
Legal Consequences
If an employer fails to pay the décimo terceiro within the legal deadlines, they may be reported to Brazil’s Ministry of Labor. Penalties include fines and legal actions, and the employee may be compensated for damages. Additionally, failure to pay on time can damage a company’s reputation and lead to employee dissatisfaction or turnover.
Employee Rights
Employees have the right to report non-payment or delayed payment to labor authorities. The law ensures protection for the worker, and in many cases, courts rule in favor of the employee. Companies are advised to document payments and maintain transparency with their workforce.
Can the 13th Salary Be Paid in Advance?
Vacation Pay Option
Brazilian labor law allows employees to request the first installment of the 13th salary to be paid along with their vacation. This request must be made in January of the same year and agreed upon by the employer. This arrangement helps employees plan ahead and can ease financial burdens during holidays or school breaks.
Full Payment Option
In some cases, companies choose to pay the entire 13th salary in a single installment before December 20. While not mandatory, this practice is legal and often appreciated by employees. It simplifies payroll and can reduce administrative work for smaller companies.
Planning and Budgeting with the 13th Salary
For Workers
Because the 13th salary is an extra source of income, many workers use it for:
- Holiday shopping and family gifts
- Debt repayment or loan installments
- Emergency savings or investments
- School supplies and tuition fees for the next year
For Companies
Employers should maintain a payroll reserve account to ensure the smooth handling of the 13th salary. Budgeting software or financial forecasting can help estimate year-end obligations and avoid surprises.
Understanding décimo terceiro quando cai is crucial for both employees and employers in Brazil. The 13th salary is more than a financial benefit it’s a legal obligation and a tool for economic stimulation during the holiday season. Whether you are an employee expecting your bonus or a business preparing for end-of-year expenses, knowing the deadlines, calculations, and planning methods ensures smooth operations and financial stability. As the calendar approaches the final quarter, it’s always wise to ask not just when the décimo terceiro will fall, but how best to use it or manage it.