How we calculate
Vacation pay is proportional to days taken, plus one-third bonus; taxed like a normal salary. Cashed-out days are tax-exempt.
Formula used
Vacation pay = (salary ÷ 30) × days taken. One-third bonus = vacation pay ÷ 3.
Férias = (salário/30 × dias gozados) + 1/3 constitucional, com INSS/IRRF sobre o total
Practical example
An employee earning R$ 3,000 who takes 20 days and cashes out 10 receives taxed vacation pay plus a tax-free cash-out.
How to interpret the result
Compare cashing out days versus taking all 30 — cashing out is tax-free but means less rest time.
Limitations
Uses the same progressive INSS/IRRF tables as regular salary, a common simplification.