Benefit paid by the company to workers, the FGTS is a reserve fund created by the federal government that can be redeemed in some adverse situations.
The FGTS is collected monthly by the employer or service provider, and corresponds to 8% of the employee’s gross salary. For domestic workers, the percentage rises to 11.2% – 8% monthly deposit and 3.2% as an advance payment for termination payments. In apprenticeship contracts it is reduced to 2%.
Discover the step-by-step guide to living on income and receiving your first rent in your account in the next few weeks, without needing to own a property
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Who is entitled to FGTS?
- Workers governed by the CLT
- Rural workers and harvesters (the latter are professionals who work only during the harvest period)
- Intermittent workers
- Temporary employment contracts
- Professional athletes
- Domestic workers
- Casual workers (hired by unions, but without an employment relationship with a company).
When to withdraw the FGTS?
– Dismissal without just cause – the worker can withdraw the balance corresponding to the deposits made by the company during the term of the employment contract. The employee dismissed without just cause also receives a termination fine corresponding to 40% of the FGTS balance calculated.
– Retirement – full withdrawal of the balance from linked accounts is permitted in the case of retirement, including those of independent workers. If the person chooses to continue working, the amounts relating to new FGTS deposits can only be withdrawn when the new employment contract is terminated, upon request, without or for just cause.
– Death of the worker – the full balance of the deceased employee’s FGTS account is divided into equal parts, among the dependents informed on the INSS Certificate of Dependents or in the document provided by the Public Body or Company to which he was linked. When there are no dependents registered with Social Security or an equivalent body, the payment of the FGTS balance will be made through a court order.
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– HIV – The worker (or dependents) with the HIV virus will be able to withdraw the FGTS balance in full, including the amount related to the current employment contract.
– Cancer – The worker (or dependents) with malignant neoplasia is authorized to withdraw the FGTS balance in full, including the amount relating to the current employment contract.
– Terminal illness – The worker (or dependents) with a terminal illness is authorized to withdraw the FGTS balance in full, including the amount relating to the current employment contract.
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– Death of the individual or domestic employer – the employee can withdraw the FGTS balance when the individual or domestic employer dies.
– Termination due to mutual fault or force majeure – The withdrawal of the FGTS balance may occur when the termination of the employment contract is motivated by a breach of duties and obligations or contracts, both on the part of the employee and the employer, after a decision by the Labor Court.
Withdrawal is also permitted due to force majeure when the termination of the employment contract occurs as a result of the company closing in whole or in part for reasons beyond the employer’s control, such as in the case of fires or floods, for example.
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– Early termination or termination of contract – withdrawals relating to FGTS deposits are also permitted upon the termination or anticipation, by the employer, of the termination of the fixed-term employment contract.
– Termination of the company – the employee is allowed to withdraw the FGTS balance as a result of a breach of the employment contract when the company is dissolved, even without the respective deletion from the employment record.
– Inactive account – The worker can withdraw the FGTS balance from the linked account without deposit for three uninterrupted years, the holder of which took place until July 13, 1990.
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Withdrawal is also permitted when the worker remains outside the FGTS regime for three uninterrupted years, as long as the withdrawal took place on or after July 14, 1990. The withdrawal, in this case, must be made in the month of the holder’s birthday. account.
– Suspension of casual work – The freelance worker may request the withdrawal of the FGTS when there is a total suspension of work for a period equal to or greater than 90 days. The amount refers to the balance of the account opened by the Union/OGMO (Local Labor Management Body).
– Over 70 years old – When the holder of the linked account reaches the age of 70 or over, he or she can withdraw the balance in full from all FGTS accounts, including deposits relating to the last employment contract.
– Own home – The FGTS can be used in the purchase, amortization, settlement of outstanding balances and payment of part of the installments of property acquired in real estate and consortium systems. The balance of FGTS accounts can be used to settle up to six late housing loan installments.
– Orthoses and/or prosthetics – Workers with long-term physical or sensory disabilities can use the balance of their FGTS account to purchase orthoses and/or prostheses not related to surgery, as long as they are included in the OPM Table of the Unified Health System (SUS)
– Natural disasters – Withdrawal is also possible in case of urgent and serious personal need, resulting from a natural disaster, which has reached the worker’s area of residence. Provided for in Decree No. 5,113/2004, the emergency situation or state of public calamity must be recognized by means of a Federal Government decree.
– Birthday loot – the worker can annually withdraw part of the balance from their FGTS account, in the month of their birthday.
Adhering or not to the “Birthday Withdrawal” format is optional, but it is a decision that needs to be evaluated carefully. In this model, if the worker is fired without just cause, he will not be able to withdraw the full amount from the account. He will only withdraw in full the amount relating to the termination fine. fine This model will prevent the full amount from being withdrawn in the event of unfair dismissal. The worker will only be able to return to the standard modality (withdrawal of the full amount upon dismissal without just cause) two years later after the request.
Discover the step-by-step guide to living on income and receiving your first rent in your account in the next few weeks, without needing to own a property
How to withdraw FGTS?
For those who meet any of the conditions that allow you to use your FGTS balance, you can access the FGTS Application and check the amounts available for withdrawal. Then, indicate any banking institution to receive the amounts, which will be available in the account after five business days.
