Brazil FGTS Calculator (2026)
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FGTS is Brazil’s mandatory severance fund: every month the employer deposits 8% of the employee’s gross pay into a government-held account. Use this calculator to estimate the accumulated balance and the additional 40% penalty an employer must pay when it dismisses someone without cause.
What FGTS is and who pays for it
FGTS (Fundo de Garantia do Tempo de Serviço) is a compulsory savings scheme created to protect workers who lose their job. Under article 15 of Law 8,036/1990, an employer must deposit 8% of each employee’s monthly gross remuneration into an individual account held at Caixa Econômica Federal, by the 20th of the following month.
This is an employer cost on top of salary, not a payroll deduction. It never reduces take-home pay and does not appear as a deduction on the payslip — a common point of confusion for foreign HR teams budgeting Brazilian headcount. When you model the true cost of a Brazilian hire, add roughly 8% for FGTS on top of gross salary, plus employer social-security contributions.
The base is total remuneration, not just base salary: overtime, night-shift premiums, habitual bonuses and commissions all increase the deposit. The 13th salary and holiday pay also generate FGTS, so a full year of employment produces thirteen deposits rather than twelve.
The 40% severance penalty
If the employer terminates the contract without cause, it must pay a penalty equal to 40% of everything deposited into that employee’s FGTS account during the contract, adjusted for inflation. The employee then withdraws the full balance plus the penalty. This is the single largest variable in the cost of an involuntary termination in Brazil.
Two alternatives reduce it. A mutually agreed termination under article 484-A of the CLT cuts the penalty to 20% and lets the employee withdraw up to 80% of the balance. If the employee resigns, or is dismissed for cause, no penalty is due and the balance stays locked in the account until another legal withdrawal event occurs.
A frequent and expensive mistake: the 40% is calculated on the historical sum of all deposits made during the contract, not on the balance currently sitting in the account. Amounts the employee already withdrew — for a home purchase or under the optional birthday-withdrawal scheme — still count toward the base.
How the balance grows
FGTS accounts earn the Brazilian reference rate (TR) plus 3% per year. Since 2017 the fund’s board also distributes part of its annual profit to workers who held a balance on December 31 of the previous year, credited around the middle of the following year and proportional to each account. In March 2024 the Supreme Court ruled in ADI 5090 that total remuneration of these accounts cannot fall below IPCA inflation, so a top-up is applied when the standard formula falls short.
This calculator deliberately ignores all of that and sums only the nominal 8% deposits. Treat the result as a floor: the official statement in the FGTS app will normally show more, particularly for long contracts.
Quick reference: balance after 24 months
Nominal figures for a constant salary, 24 deposits and no withdrawals. The last column is the extra amount an employer would owe on a dismissal without cause at the end of those two years.
| Gross salary | Monthly deposit (8%) | Balance after 24 months | 40% penalty |
|---|---|---|---|
| R$1,621.00 (2026 minimum wage) | R$129.68 | R$3,112.32 | R$1,244.93 |
| R$2,000.00 | R$160.00 | R$3,840.00 | R$1,536.00 |
| R$3,000.00 | R$240.00 | R$5,760.00 | R$2,304.00 |
| R$5,000.00 | R$400.00 | R$9,600.00 | R$3,840.00 |
| R$8,000.00 | R$640.00 | R$15,360.00 | R$6,144.00 |
Frequently asked questions
Is FGTS deducted from the employee’s salary?
No. The 8% is an employer contribution paid on top of gross salary. Unlike INSS social security and income tax, it never reduces take-home pay. Budget it as an additional employment cost.
When can an employee withdraw FGTS?
Only in situations listed in the law: dismissal without cause, mutually agreed termination, end of a fixed-term contract, retirement, serious illness, buying or paying down a home under the national housing system, turning 70, three consecutive years outside the FGTS regime, or the optional annual birthday withdrawal.
Does the 40% penalty apply to every termination?
No. It applies to dismissal without cause. A mutually agreed termination under article 484-A of the CLT carries a 20% penalty, and resignation or dismissal for cause carries none.
Why is my real balance higher than this estimate?
Because the calculator sums nominal deposits only. Real accounts also earn TR plus 3% per year, receive a share of the fund’s profit distribution, and are protected by an IPCA inflation floor set by the Supreme Court. Deposits are also larger in months with overtime, commissions, the 13th salary or holiday pay.
Sources
Estimate based on the 8% deposit rate (Law 8,036/1990) and the 40% severance penalty in force in 2026. It excludes monetary correction, TR, the 3% annual interest, the fund’s profit distribution and the IPCA floor set by the Supreme Court, so real balances are typically higher. Not legal or accounting advice.
Related calculators
Also available in Portuguese: Calculadora de FGTS 2026