Ministry of Labor proposes change in FGTS anniversary withdrawal
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The Ministry of Labor sent a bill to the Civil House that changes the anniversary withdrawal from the Service Time Guarantee Fund (FGTS). The measure, which still needs to be sent to Congress, provides for the withdrawal of the remaining balance of those who were fired from 2020 onwards. According to “O Globo”, this could inject up to R$14 billion into the economy.
The withdrawal modality was created by former president Jair Bolsonaro in 2020. Workers who opt for this modality redeem part of the money deposited in the Fund in the month of their birthday. The amount is proportional to what is deposited in the fund and ranges from half, for those who have up to R$500 saved, to 5% plus an additional installment of R$2,900, for those who have more than R$20,000.
By adhering to the birthday withdrawal, the worker gives up the termination withdrawal. When fired without just cause, he can only withdraw a fine of 40% of the FGTS balance. And if he wants to return to the withdrawal-termination modality, he has to serve a two-year grace period.
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