The Fund for Guarantee Time in Service (FGTS) for 2024 will undergo major changes, thanks to the draft law (PL) that is being prepared. There is much debate about the Christmas draw, which is a method that allows workers to withdraw part of their FGTS once a year.
Luiz Marinho, the current Minister of Labor and Employment, proposed reframing the Christmas withdrawal. The changes could significantly increase the flexibility of the 2024 FGTS, especially for those who have chosen to opt out of the birth date. One of the key changes is the possibility of full withdrawal in the event of unfair dismissal, similar to what happens when you withdraw upon termination.
What are the possible changes to FGTS 2024?
The bill proposes important changes. Currently, workers who choose to walk away due to Christmas can only withdraw the 40% termination penalty in the case of unfair dismissal. With the new law, releasing the full balance could inject about R$14 billion into the economy, according to estimates by the Ministry of Labor and Employment. This proposal still needs to be analyzed and approved by President Luiz Inacio Lula da Silva before being sent to the National Congress.
In addition to the changes to withdrawals in the event of a dismissal, the Department of Labor is also considering allowing retroactive withdrawals for those who have elected to withdraw annually since the law went into effect in 2019. On the other hand, there is concern that these retroactive withdrawals and payments could lead to… Eliminate FGTS 2024 capital, a fund also used to finance housing and sanitation.
What does the Christmas loot represent?
Created in 2019, the Birthday Draw is a withdrawal method that allows workers to withdraw part of their FGTS balance once a year, in the month of their birthday. However, in the event of dismissal, the worker loses the right to recover the full amount from the FGTS account. In this case, only 40% termination penalty can be withdrawn.
How do I request a birthday withdrawal?
To benefit from the Christmas draw, the worker must:
- Download the FGTS application.
- Log in with the account associated with Caixa;
- Select the “Birthday Draw” option.
After choosing to opt out of the birth date, the worker must remain in this method for a minimum of 24 months.
Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.