Cash bonus: what it is, how it works and how to calculate

The cash bonus is a practice that can be very interesting for both companies and employees. It is nothing more than the right that the professional has (provided for in the CLT), to sell part of his vacation period to the organization he works for. 

‍

According to the Consolidation of Labor Laws, every employee can trade up to ⅓ (one third), or up to ten days, of the total period. The idea is to receive an "extra" amount in the payroll, a remuneration for the exchange. 

‍

Want to know more details about the practice and learn how to calculate it? Check out what we have prepared below:

‍

How does the cash bonus work?

The cash bonus is a completely optional practice for both parties involved. It is optional, since neither the company nor the employee is obliged to accept this sale of vacation time. 

‍

If either party is interested in proposing the bonus to the other, the request must be made at least 15 days before the end of the employee's vacation period. Proposals that contemplate collective vacation periods are not valid here either, unless an agreement is reached with the union in question.

‍

In addition, only those professionals who work at least 25 hours a week can apply for the allowance.

‍

It is important for the HR of the companies to provide clarity to employees on the subject, since it is common that most are unaware of their own rights and therefore do not even know about this possibility. Forwarding a communication or creating a consultative manual for the teams in your company can be an excellent way to get everyone on the same page and can even be considered a strategy for reducing turnover.

‍

How is the cash bonus calculated?

Every employee is entitled to 30 calendar days of vacation for every 12 months worked. If they opt for the cash bonus, ten of these 30 days can be sold to the organization, resulting in 20 days of rest + ten days of remuneration received.

‍

To calculate the amount that the employee will receive is simple:

‍

Cash bonus amount = Amount of monthly remuneration + 1/3 of vacation

‍

In practice, if an employee receives R$3000 of salary and counts on the 30 days of vacation to take, he receives R$1000 of bonus (equivalent to ⅓).

‍

The most interesting thing about the cash bonus is that it is not discounted from the payroll, unlike the other 2/3.

‍

And do you offer the bonus option for your company's employees? We invite you to follow the HR news in Alymente's blog.

‍