Workers will be able to withdraw up to R$ 1 thousand from FGTS accounts

Until December 15, each worker will be able to withdraw up to R$1,000 from their Severance Indemnity Fund (FGTS) accounts. The measure will benefit 42 million people and should inject BRL 30 billion into the economy if all workers withdraw the money.

The authorization for the new round of FGTS withdrawals is contained in a provisional measure signed recently by President Jair Bolsonaro. According to the Ministry of Labor and Welfare, the looting aims to reduce the income commitment and indebtedness of families because of the health crisis caused by covid-19.

According to the president of Caixa Econômica Federal, Pedro Guimarães, the withdrawal calendar starts on April 20 and runs until June 15. The money will be available until December 15, when it will return to the linked FGTS account.

Pedro Guimarães also informed that the payment will take place through the Caixa Tem app, used for the payment of social and labor benefits in recent years. The money will be deposited in a digital savings account, and can later be transferred to a current account through the cell phone.

The Ministry of Labor and Welfare informs that the other legal possibilities for moving FGTS resources remain valid. The fund can be withdrawn in the following cases: dismissal without just cause, extinction of the company, retirement, death of the worker, payment of installments of housing financing granted by the Housing Finance System (SFH) to people aged seventy years or older, in addition to serious diseases defined by law.

Patrimony

According to the ministry, the value of the withdrawal will not compromise the financial health of the FGTS nor will it reduce support for investments in housing, sanitation and infrastructure carried out with funds from the fund. The government presented figures to justify the measure.

In November last year, according to the most recent balance sheet, the fund had R$105 billion in equity (difference between assets and all obligations). Of this total, R$ 29 billion are available and can be withdrawn. When considering the monthly inflows and outflows of funds, BRL 6.4 billion would be left over if all workers withdraw.

According to the government, the projected flow of withdrawals does not affect the maintenance of the required technical reserve. This mechanism determines that the total amount of investments in medium and long-term federal public securities remains at a higher value than the withdrawals made in the three immediately preceding months.

Limit

Each worker can withdraw up to R$ 1 thousand, regardless of the number of accounts they have. Caixa clarified that those who anticipated the FGTS anniversary loot and had the amount blocked in the account will not be able to withdraw the amount. This is because the new round of withdrawals can only be made for accounts with released resources.

As in the last rounds, the pay schedule was set based on the worker’s month of birth. From the date of release in the digital savings account, funds can be withdrawn until December 15th.

Check the calendar:

* Article updated at 6:16 pm for additional information.