The FGTS birthday withdrawal is at risk of major changes

The FGTS birthday withdrawal is at risk of major changes

The Brazilian Congress is awaiting a proposal from the government to change the FGTS withdrawal rules. As stated by Labor Minister Luiz Marinho, this proposal will be sent next week. Although he did not reveal details about the procedure, Marineau had previously revealed his position opposing the current withdrawal policy.

In January this year, the minister announced that the subsidy would end. However, he ended up retracting his decision. The expectation now is what the proposed changes will be and how they will impact workers’ pockets.

Understanding FGTS Birthday Withdrawal

Birthday Withdrawal is a benefit given to those who decide to withdraw part of their FGTS (Guarantee Time in Service Fund) balance in their birthday month. However, adhering to this method prevents withdrawal of the total FGTS balance in cases of unfair dismissal. If the worker decides to suspend the Christmas draw, it is necessary to wait two years.

Why is the change to Christmas withdrawal controversial?

For some, the prospect of Christmas withdrawal changes is viewed with concern. The Ministry of Finance, for example, believes that the withdrawal option promotes economic growth in the country, thanks to increased money circulation.

It is a fact that many workers rely on their birthday draw as additional income to help with their family budget. In this sense, any changes in the FGTS rules could significantly impact the financial lives of these people.

What do we expect from the new proposal?

There are high expectations about what the new proposal will bring and how it will be received by Congress. Regardless of definitions, the important thing is that change is widely discussed, in order to protect workers’ rights.

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It is worth noting that any changes to the FGTS rules, such as opting out of date of birth, require congressional approval. Therefore, any change will be carefully analyzed by people’s representatives before it becomes law.

In the meantime, we await the next steps from the Department of Labor and the official publication of the new change proposal on the anniversary of the FGTS withdrawal.

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About the Author: Camelia Kirk

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