Minister of Labor will ask for an end to new requests for birthday withdrawals

Minister of Labor will ask for an end to new requests for birthday withdrawals

The Minister of Labor, Luiz Marinho, will ask for an end to new requests for birthday withdrawals from the Severance Indemnity Fund (FGTS), confirmed today (24) the advisory of the folder. The suggestion will be presented at the meeting of the FGTS Board of Trustees on March 21st.Minister of Labor will ask for an end to new requests for birthday withdrawals

The request does not mean that the suggestion will be accepted. This is because the Board of Trustees brings together representatives of the government, companies and workers. Of the 12 seats, the government has six; employer entities, three; and employee entities, three. In the event of a tie vote, the representative with the longest tenure on the board will have the casting vote.

Currently, the FGTS Board of Trustees has five empty government seats, with only Minister Luiz Marinho occupying the Executive seats. As the definitive composition of the board still depends on names that are still to be indicated, the decision will be left for March.

During the inauguration speech, Marinho had indicated that he intended to extinguish the anniversary withdrawal to “correct distortions” in the FGTS. One day later, the minister backed down and he wrote, on social networks, that he only intends to discuss the measure with the Board of Trustees and the trade union centrals.

“Whether or not the FGTS anniversary withdrawal will be maintained will be the subject of wide debate with the FGTS Board of Trustees and with the trade union centrals. Our concern is with the protection of male and female workers in case of dismissal and with the preservation of their savings”, posted the minister on Twitter on the last 5th.

annual withdrawals

Through the birthday withdrawal, the worker can withdraw, each year, a part of the balance of any active or inactive account. Since the entry into force of the modality, in April 2020, 28 million workers have joined the model and withdrew BRL 34 billion from the FGTS. On average, R$ 12 billion are withdrawn per year.

The withdrawal period for those who opt for the birthday withdrawal begins on the first working day of the worker’s birthday month. Values ​​are available until the last business day of the second subsequent month. If the money is not withdrawn on time, it goes back to the FGTS accounts in the name of the worker.

Adherence to the anniversary withdrawal, however, requires care. Under current rules, when withdrawing a portion of the FGTS each year, the worker will no longer receive the amount deposited by the company if he is dismissed without just cause. The payment of the 40% fine in these situations is maintained.

At any time, the worker can give up the birthday withdrawal and return to the traditional modality, which only allows withdrawal in special cases, such as unfair dismissal, retirement, serious illness or the purchase of real estate. However, there is a shortcoming in modality reversal.

When returning to the traditional withdrawal, the worker will not be able to withdraw the balance from the FGTS account for two years, even in the event of dismissal. If he is dismissed, he will only receive the 40% fine.

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