The FGTS (Fundo de Garantia do Tempo de Serviço) is subject to a monetary correction, so that the deposited balance that is the worker’s right is not lost as inflation progresses.
The reason is that while the money is in your FGTS account, the government will use it to carry out public works, as if it borrowed this amount from the worker with an official contract. The profit is actually that the government pays you to adjust the interest rate.
The Termination Compensation Fund (FGTS) was created with the aim of protecting a worker who was fired without a valid reason, by opening an account linked to an employment contract.
The FGTS consists of the total of these monthly deposits and amounts belonging to employees who, in some cases, may be the total amount deposited in their names.
Who has the right?
A worker who has a formal contract governed by the Unification of Labor Laws Act (CLT), as well as domestic, rural, temporary, casual, single, and safreiros (rural workers who work only during the harvest period) and professional athletes are entitled to a guarantee fund.
This benefit may also be directed to the non-working director, at the employer’s discretion.
Situations in which you can withdraw the FGTS
Looting Guarantee Fund It can be done under the following conditions:
dismissal without just cause;
Ordinary termination of a fixed-term employment contract;
retirement granted by social security;
In the event of a serious illness
Buying a home
However, the FGTS may be withdrawn in other situations permitted by Caixa Econômica Federal:
The method allows to withdraw part of the balance from the FGTS account, annually, in the month of the worker’s birthday. Amounts are available for withdrawal up to the last business day of the second month following the date of issue.
Who is entitled to FGTS earnings?
Employees with a formal contract who have available balance in the accounts of the guarantee fund on December 31, 2021 are entitled to FGTS earnings.
Even if there is only 1 BRL in your account on that date, the interest rate will be corrected. Of course, the higher the value, the higher your profit.
The amount will be available in your FGTS account until August 31, 2022 for the 2021 corrections.
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