FGTS review: change can yield more BRL 1,400 in 10 years – 04/21/2023 – Market

Under current rules, a worker who receives a minimum wage, currently at R$ 1,302, and has 8% of earnings, or R$ 104.16, collected for the FGTS (Fundo de Garantia do Tempo de Serviço), would have over 10 years, an accumulated amount of R$ 15,031.

The calculation considered the return of 3% plus the TR (Referential Rate) of the investment and was made by investment advisor Michael Viriato, author of the blog De Grain in Grain, from Sheet.

If the same index of correction of the new savings account of 6.17% per year were adopted, as defended by Minister Luís Roberto Barroso, rapporteur of the action that discusses the revision of the fund in the STF (Federal Supreme Court), the accumulated balance would reach R$ 16,413. That’s R$ 1,400 more, or 9.2% above the current result of the guarantee fund.

In both cases, however, the value would lose to the inflation measured by the IPCA (National Index of Consumer Prices Ample) in the last 120 months. If the money in the fund had been corrected by the official inflation index, its accumulated value would have been R$16,928, R$1,900 higher, or 12.6% more than the guarantee fund’s yield.

“The amount applied to the FGTS, which would be a savings for when the worker goes through an unfavorable moment of unemployment, ends up being a punishment, because the longer he spends employed, the more his money loses value, since the application in the FGTS loses up to even inflation”, says Viriato.

The advisor recalls that the government finances itself by paying a remuneration around the IPCA plus 6% per year, through Treasury IPCA public bonds for those who have resources to invest. “Nothing could be fairer than the same remuneration being given to workers who have no choice but to invest compulsorily in the FGTS”, says the expert.

Check below simulations comparing the income from FGTS, savings and IPCA considering monthly contributions of 8% on top of the minimum wage and amounts of R$ 3,000, R$ 4,000, R$ 5,000 and R$ 10,000.

The trial of the revision of the FGTS in the STF was suspended by Minister Rosa Weber after the presentation of the votes of Barroso and Minister André Mendonça, who reinforced the thesis of the rapporteur and stated that the TR is unconstitutional. The analysis of the theme should be resumed by the ministers on Thursday (27).

For Barroso, there is no constitutional right to monetary correction to restore inflation, but the current FGTS remuneration model “is not reasonable”. “The FGTS remuneration cannot be lower than the booklet”, he said.

What is the FGTS review?

It is a lawsuit in which the constitutionality of the correction of the money deposited in the Guarantee Fund is questioned. Today, the FGTS return is 3% per year plus the TR, which yields close to zero. With this, the update of the money is below inflation, failing to replace the worker’s losses.

Since 1999, when there was a change in the calculation of the TR, workers accumulate losses.

Why is the correctness of money questioned?

The TR, used to correct the fund’s money, has a very low yield, close to zero, meaning that workers are unable to replenish their purchasing power with the FGTS money balance. Several calculations point to losses ranging from 24% in the last ten years to up to 194% for those who have values ​​in the fund since 1999.

In 2014, when the action started, a study by Força Sindical showed that a worker who had R$ 1,000 in 1999 in the Guarantee Fund had, in 2013, R$ 1,340.47. If inflation measured by the INPC, used in wage correction, were considered, the value should be R$ 2,586.44, a difference of R$ 1,245.97.

In defense of the greater correction, experts claim that the FGTS money is income from the salary and cannot bring losses, as it is not an investment.

What are the next steps in the FGTS review?

Now, the workers must wait for new ministerial votes and the end of the trial, which still does not have a date to happen. In addition, after the decision, if the revision is actually approved, there may be a motion for clarification, which is a request to clarify some point of the decision, and also, the so-called modulation of effects, so that the Supreme Court determines who can receive the amounts late. If only those who went to court or everyone who had losses.

Who is entitled to the review?

All workers with money in the fund from 1999 onwards may be entitled to correction. According to Caixa, there are 117 million Guarantee Fund accounts between active and inactive.

Experts estimate that at least 70 million workers could benefit. It is possible for a worker to have more than one account, opened with each new job with a formal contract.

The expectation is that everyone will have new deposits corrected by the new rule from then on. To define issues such as the payment of amounts from previous years, for example, the STF will have to modulate the theme.

In modulation, it can be decided that Caixa should pay only those who filed a lawsuit until 2014 or until the date on which the judgment was scheduled or even only for those who are part of collective actions. It is necessary, however, to wait for what the Supreme Court will decide and how it will modulate the issue.

What is FGTS and how does it work?

The FGTS works as a savings account for the worker. The fund was created in 1966, with the end of job stability, and came into effect in 1967. Every month the employer deposits 8% of the employee’s salary into an account opened for that job.

There is also a fine of 40% on the FGTS if the worker is fired without just cause. Since the 2017 labor reform, there is also the possibility of withdrawing 20% ​​of the fine after agreement with the employer upon dismissal.

Who is entitled to FGTS?

Every worker with a formal contract must have the FGTS deposited, which currently includes maids. Until 2015, domestic workers were not entitled to FGTS. The PEC das Domésticas, however, brought this possibility in 2013, but the law that regulated the measure and made it possible for employers to deposit amounts came into effect only two years later.

How do I know my FGTS balance?

The value can be consulted in the FGTS application, through the fund statement. It is also possible to obtain a copy of the statement at Caixa branches. For each company where the worker was hired, there is an open linked account. You need to observe the value in each account and add up how much you have, in all.

• Open or download the FGTS application (for the first access, you need to create an access password)
• Click “Enter Application”
• The phrase “FGTS would like to use Caixa.gov.br to log in” will appear; go to “Continue”
• Enter your CPF and click “Next”
• Enter your password and go to “Login”; If you don’t remember, click on “Recover password”
• On the home screen, information regarding the companies you have worked for will appear.
• The balance of values ​​for the current company or the last company you worked for appears at the top of the screen; click on it to see the movements
• To save the data, click on “Generate PDF extract” and save it on your cell phone
• To see all the companies you’ve worked for, go to “View all your accounts”
• Click on each of the companies to open the statement; on each screen, the total balance will appear

How to withdraw my FGTS?

The FGTS can only be withdrawn in specific situations, according to the law, such as retirement, home purchase, dismissal without just cause or serious illness. In 2019, one more situation was added, which is the anniversary loot. However, those who opt for this modality cannot make the withdrawal-termination when leaving the job. Here are 16 situations:

1. Dismissal without just cause
2. End of temporary contract
3. Buying or building your own home
4. Amortization of home equity
5. In the birthday month for those who opted for the birthday withdrawal
6. Termination of contract due to bankruptcy or death of individual employer, domestic employer or nullity of contract
7. Termination of the contract due to reciprocal fault or force majeure
8. Retirement
9. Natural disaster, floods and emergencies
10. Suspension of part-time work
11. worker’s death
12. Age equal to or greater than 70 years
13. Worker or dependent with HIV
14. Worker or dependent with cancer
15. Worker or dependent with serious illness or in the terminal stage due to serious illness
16. If you stay outside the FGTS regime for three consecutive years