The 13º salário, meaning "13th salary" and also called décimo terceiro, is a mandatory year-end bonus in Brazil equal to one additional month's salary. Established by law in 1962, it applies to all formal employees (CLT workers), domestic workers, and retirees.
Payment Schedule
The 13th salary is paid in two installments. The first installment (adiantamento) must be paid between February 1 and November 30, and equals half of the employee's monthly salary without deductions. The second installment must be paid by December 20 and includes tax and social security deductions on the full amount. Many employers pay the first installment when the employee takes vacation.
Calculation for Partial Years
Employees who worked less than 12 months receive a proportional 13th salary: 1/12 of their December salary for each month worked (with 15+ days counting as a full month). The calculation uses the December salary, so any raises during the year benefit the employee's full 13th salary.
EOR Relevance
An EOR in Brazil manages the calculation, tax withholding, and timely payment of the 13th salary for both installments. Late payment results in fines per employee plus potential labor ministry penalties. The EOR also handles the proportional calculation for employees hired or terminated mid-year.