Service Time Guarantee Fund, commonly known as FGTSIt is a right enjoyed by all public employees. It has long been believed that the benefit can only be withdrawn in the event of dismissal, but this is nothing more than a myth. In the current scenario of economic fluctuations and adaptation to Brazilian labor laws, many questions arise about FGTS. To remove all these doubts, here we will explain how this feature works.
The FGTS is an emergency fund created from a monthly deposit made by the employer into a Caixa Econômica Federal account in the employee’s name. This deposit is equivalent to 8% of the worker’s salary and cannot be deducted directly from his salary. Created more than 50 years ago, FGTS has undergone several changes during this time, but continues to maintain its main goal: to be a safeguard for workers in certain situations.
How does FGTS work?
The FGTS is one of the oldest benefits afforded by the CLT, having been around since September 1966. It was created with the aim of replacing “ten-year stability,” which only guaranteed compensation to workers who had been with the same company longer. From 10 years. With the establishment of the FGTS, an amount is deposited each month by the company to the worker, making this a common benefit for all CLT workers, and yes, you are also entitled to it, unless you are a trainee, self-employed or freelancer.
How do I know that the FGTS has been deposited?
All companies must deposit an amount equivalent to 8% of a worker’s gross salary per month into an account linked to their FGTS. This amount must not be deducted directly from the employee’s salary. Workers can monitor deposits through an FGTS statement mailed to the employee’s home every two months. But now, in the digital age, workers can check their FGTS statement online, via SMS, via phone calls and even via FGTS apps.
When is it possible to withdraw FGTS?
There are currently 10 possibilities for withdrawal of the FGTS: dismissal without just cause, purchase of your home, retirement, if the employee or dependent suffers from a disease considered serious under Article 20 of Law 8.036/90, in the case of certain types of cancer and in the case of a terminal illness due to a terminal illness. Dangerous, 3 years without an official contract, age greater than or equal to 70 years, workers who are entitled to withdraw FGTS due to an account that has been inactive for 3 years, withdrawal due to having a heart attack, among other reasons that allow withdrawal.
New FGTS law
With the advent of the new FGTS law in 2019, a new withdrawal method was provided, the Birthday Draw, which allows workers to withdraw part of the FGTS balance annually. This withdrawal can range between 5% and 50% of the balance, depending on the amount in the worker’s account. However, when choosing this withdrawal method, the worker loses the right to withdraw the entire FGTS balance in the event of unfair dismissal, and is limited to a 40% termination penalty only.
Final considerations
The FGTS is a benefit that every CLT worker is entitled to, and it is important to know and understand all withdrawal alternatives to make the best choice given the circumstances. Remember, it is always necessary to consult official channels for accurate and up-to-date information.
