Recently, Caixa Econômica Federal announced the opening of the birthday withdrawal for citizens born in the month of May. This modality of the Service Time Guarantee Fund (FGTS) allows workers to access part of their account balance annually, during their birthday month. However, choosing this option significantly changes the rules for other forms of withdrawals.
How do I join the FGTS Birthday Withdrawal?
Adhering to the birthday withdrawal is voluntary and can be done through the FGTS application or directly at Caixa Econômica Federal branches. Workers who opt for this modality and are born in May can make the withdrawal in the same year, as long as they join by the end of May. Otherwise, the withdrawal can only be made in the following year.
What are the deadlines for making a withdrawal?
The withdrawal period is limited to three months, starting on the first business day of the beneficiary’s birthday month. For those born in May, for example, the last day to withdraw is July 31st. It is important to pay attention to these deadlines so as not to lose access to the funds allocated for this interval.
Understand the FGTS withdrawal limits and percentages
The amounts available for withdrawal vary depending on the total balance in the worker’s FGTS accounts. There are balance ranges that determine the percentage that can be withdrawn, in addition to additional installments. For example, a balance of up to R$500 allows a withdrawal of 50% of that amount. Balance greater than R$1,000 and up to R$5,000 provides a 30% withdrawal plus an additional installment of R$150.
Impact of the Birthday Cash on termination of employment contracts
A crucial point to understand is that when opting for the birthday withdrawal, the worker loses the right to withdraw the full FGTS balance in the event of unfair dismissal, and can only withdraw the 40% termination fine. The remaining balance remains in the fund until the worker decides to change their withdrawal method or in other situations such as retirement or serious illness, as provided for by law.
How to return to withdrawal-termination?
For those who opted for the anniversary withdrawal but wish to return to the conventional withdrawal-termination model, it is necessary to wait a grace period of 25 months after requesting the change. This time must be considered in the worker’s financial planning, since during this period, the birthday withdrawal conditions remain valid.
Although the birthday withdrawal offers the advantage of an extra resource annually, it is essential to carry out a careful and personalized analysis to check whether this option is the most advantageous in the long term, considering the restrictions imposed mainly in employment termination scenarios.
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