Can FGTS and unemployment insurance be terminated? understand why

a unemployment insurance it’s the FGTS (Fundo de Garantia do Tempo de Serviço) is within sight of the Graduate Employment Studies Group (GAET). In a recent study, experts suggested ending 40% termination fine on FGTS, among other changes.

While many workers fear the benefits may run out, this is just a study. So far, no progress has been made on the bill and there is no indication that it will actually be evaluated by Congress.

However, discussions on this topic lit yellow light for many workers and experts. The main concern is that the proposal, put forward by the group, created by Economy Minister Paolo Guedes, will gain traction among members of the government.

what is the suggestion?

The plan is to create a fund to be held through employer deposits, but not in the name of every worker. 40% fine on credit FGTS Because workers dismissed without just cause will become extinct.

The Workers’ Support Fund (FAT) will manage a single unemployment protection fund, with flexible access to the FGTS at any time, unlike today.

Odds of approval

As mentioned, the proposal encountered great resistance among workers and experts. In addition, Guedes took a stand against reducing the FGTS group.

For this reason, it is unlikely that it will be referred to the National Congress in the short term, especially in an election year. Without changes, classes should not start, and the 40% FGTS fine must be maintained, plus unemployment insurance.