At the end of last month, the Minister of Labor and Social Security, Luiz Marinho, announced a decision that has generated a lot of controversy among Brazilian workers: the federal government intends to abolish the FGTS birthday withdrawal through a bill to be sent to the National Congress.
(Photo: reproduction/internet)
This new and important modality, created in 2019, allowed workers to withdraw part of the balance of the Severance Pay Fund annually, in the month of their birthday.
What is the FGTS birthday withdrawal?The FGTS birthday withdrawal was an option created to offer workers more financial flexibility, allowing them early access to a portion of the Fund’s balance each year.
This modality brought both advantages and disadvantages to workers.Advantages of the birthday withdrawal:Early access to the FGTS.Greater financial flexibility.Income tax anticipation.Disadvantages of the birthday withdrawal:Reduction of the FGTS balance.
Loss of profitability.Possibility of undue withdrawal.Implications of the end of the birthday withdrawalIf the bill is indeed approved by the National Congress, the birthday withdrawal will be abolished, and workers will return to the previous regime.
In the scenario where this happens, the withdrawal of the FGTS will only be allowed in certain situations, such as the purchase of own property, severe illnesses, and dismissal, just to name a few examples. This can have a significant impact on the financial lives of workers.
Impact for workers:Possible reduction in monthly income.Difficulty in accessing own housing.Increase in family indebtedness.In the face of this scenario, it is essential that workers evaluate their financial situation and carefully consider their options.
Furthermore, it is important to keep up with the latest news on the progress of the bill in the National Congress, as any changes could directly impact the financial lives of many Brazilians.
The end of the FGTS birthday withdrawal represents a significant change in access to the Fund’s resources, and understanding its implications is essential to make conscious financial decisions and plan the future securely.
