Which option is best for workers with CPF 1, 3, 5 and 7?

Compare the options and find out if FGTS withdrawals have more advantages than the government-proposed salary loan.

The Service Time Guarantee Fund (FGTS) has always been an important resource for Brazilian workers, serving as a financial reserve in times of need, such as unfair dismissal.

In recent years, with the creation of the Christmas draw, workers have been able to access a portion of the balance annually.

However, the government is proposing unique changes, including ending this method and creating a new payroll credit model using FGTS credit as collateral. Such changes have sparked debate about what is best for workers.

The Birthday Withdrawal, created in 2020, allows workers to withdraw a portion of their FGTS annually, in the month of their birthday. For many, this option represents a way to access resources in times of need, without having to wait for a layoff or other situation.

However, this method also comes with an important limitation: when choosing a Christmas withdrawal, the worker loses the right to withdraw the entire FGTS amount in the event of unfair dismissal, which raises concerns among some beneficiaries.

In 2023, the Christmas draw was responsible for a large portion of FGTS draws, generating around R$38 billion, of which R$15 billion was allocated directly to workers.

However, a large part, about R$23 billion, was used as collateral for loans.

Thus, with the new government proposal, the looting will end on the anniversary. Therefore, workers will have the possibility to use their FGTS balance as collateral for salary loans at lower interest rates.

See also: If I stop my loan interest, will I still need to make payments that were made early?

How will the new FGTS payroll loan work?

The government’s proposal aims to provide workers with a new alternative to accessing credit, using their FGTS balance as collateral. It is already known that salary loans have lower interest rates than other types, such as personal loans.

By adding these “savings” as collateral, the risks to financial institutions will be reduced. This will allow for more attractive terms to be offered, both in terms of interest and payment terms.

This alternative, according to the government, would strike a balance between workers’ need for credit and keeping the guarantee fund able to carry out its main functions.

However, there are still doubts about the change, especially for workers who prefer direct access to the fund balance rather than borrowing. This way, the worker would only be at risk in the FGTS balance in the event of a default with credit protection agencies.

Therefore, attention to changes in the Christmas draw should pave the way for workers who are not yet accustomed to the idea of ​​the proposal.

Find out more: Bolsa Família loan: beneficiaries discover a trick to avoid paying more loan installments