The controversial FGTS birthday withdrawal, implemented by the Bolsonaro government in 2020, which allows workers to annually access part of the FGTS Guarantee Fund in the month of their birth, will continue in 2024, contrary to the goal of the Minister of Labor and Employment, Luiz Marinho. . Marineho was completely against the way it divides opinions, and proposed changes that would provide a powerful injection of R$14 billion into the Brazilian economy. The proposal, which aims to change the dynamics of the guarantee fund, is scheduled to be voted on in March 2024.
How does FGTS work?
The FGTS birthday withdrawal option, issued in 2020, allows workers to access part of their security fund each year, rather than the severance withdrawal, which releases the entire accumulated amount only in the event of unfair dismissal. This means that those who have chosen to withdraw the FGTS Birthday are not entitled to withdraw the termination, as the unjustifiably dismissed worker will access the entire accumulated balance of their service.
In addition, they benefit from a fine of 40% of the total amount. In his proposal, Marinho proposes ending the two-year grace period, allowing the full withdrawal of the FGTS account in the event of dismissal. However, it imposes a restriction: workers who opt out completely will not be able to return to the FGTS Birthday Draw in the future.
Changes to FGTS birthday withdrawal in 2024
The new FGTS Birthday Withdrawal Policy includes some important changes. Among them we highlight:
- Full Balance Withdrawal: For those who opt for a Christmas withdrawal, it is suggested that they can also withdraw the full FGTS balance whenever they wish.
- Retroactive validity: The new rules will be valid for workers who have already joined the method. Therefore, those who chose to withdraw at Christmas and who have part of their balances now blocked, can choose to withdraw completely from the security fund.
- Barrier to return: After full withdrawal of the FGTS, the worker will not be able to return to the Christmas withdrawal option. This is an attempt to avoid fluctuations between the two withdrawal methods.
Therefore, through his proposal, Marinho seeks to balance the advantages and disadvantages between withdrawal anniversary and withdrawal termination methods, generating a final decision that can reduce, in the long run, the number of workers in the possibility of withdrawal anniversary.
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