vacation pay with sell back brazil
Selling vacation days looks like a simple trade of rest for cash, but it also changes what enters the INSS and IRRF base, because the sell-back leaves that calculation while vacation pay itself does not, reshaping the whole deduction picture.
INSS already hits the R$ 8,475.55 ceiling because the base adds vacation pay plus the constitutional one-third, not just the monthly salary.
The sell-back uses daily rate × days × 4/3, which already bakes the one-third bonus into only the sold days; that is why the exempt amount exceeds the plain daily rate times 10.
The gain does not come from paying less tax on the same amount: it comes from one slice of the payment, the sell-back, leaving the INSS and IRRF base entirely.
It is an additional payment guaranteed by Article 7, item XVII, of the Constitution, equal to one third of the vacation pay. It is added to the value of the days taken and forms part of the base on which INSS and IRRF apply. Because it is a constitutional right, it applies to every CLT employee, without exception.
No. Art. 144, §6 of RIR/1999 and IN RFB 1,500/2014 exempt the sell-back from both deductions; only the vacation days actually taken and the constitutional one-third enter the taxable base.
No. Art. 143 of the CLT caps the sell-back at one-third of the period, and the simulation requires at least 20 effective rest days whenever any days are sold.
Because days sold as a bonus leave the calculation base tax-exempt, while dependents, INSS and IRRF still apply to the taken portion, materially changing the final net amount received.
⚠️ Educational simulation. Acquisition and grant periods follow the CLT. Consult your HR for special cases.
2026 tables: INSS, Portaria MPS/MF 2/2025. IRRF, Law 15.191/2025 and Law 15.270/2025 (exemption up to BRL 5,000 gross). CLT art. 143 (sell-back).
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