FGTS 2024: withdrawal anniversary with changes on the way; know more

The 2024 Guarantee Time in Service (FGTS) Fund promises big changes, particularly in relation to the Christmas drawdown method. The Minister of Labor and Employment, Luiz Marinho, has taken an important step in this direction, by proposing a bill (PL) aimed at reforming this form of plunder.

The proposal was made to provide greater worker diversity. In practice, you want to allow those who choose the Christmas withdrawal method to make a full withdrawal of the amounts applicable in the event of unfair dismissal. Furthermore, there are studies to allow retroactive withdrawal, since the issuance of this law, which occurred in 2019.

Currently, workers who choose to withdraw the FGTS on the occasion of their birthday can only withdraw the amount corresponding to the 40% termination penalty if they are dismissed without just cause. If the proposal is approved, this method would allow complete withdrawal in these cases. This could generate about R$14 billion into the economy, according to an estimate by the Ministry of Labor and Employment.

Why might the 2024 FGTS birthday draw be subject to change?

It was Minister Luiz Marinho’s idea, when he took office, to end the FGTS withdrawal on the anniversary. According to him, the fund should be a support for the worker in financially difficult times, and the impossibility of withdrawing this money in the event of dismissal contradicts this purpose. However, due to resistance to ending this method, the Ministry of Labor is developing an alternative project. A full withdrawal of the fund is proposed in the event of dismissal, but on the condition that the employee cannot choose to withdraw on the occasion of a future birthday.

Understand what Christmas withdrawal is

Birthday Withdrawal is a redemption tier introduced in 2019 that allows a worker to withdraw a portion of their FGTS balance once a year, in their birthday month. However, if dismissed, the worker loses the right to recover the full amount from the FGTS account. He will only be able to withdraw the amount corresponding to the 40% termination penalty.

In order for an employee to receive the funds for their birthday draw, they must follow the program regulations and make the draw in the month of their birthday. It is also necessary to know the available balance in the account. This method restricts the worker to withdraw from the FGTS for two years, even if he or she is dismissed without just cause.

However, even with this method chosen, the worker is entitled to a termination penalty of 40% of the amount deposited in the fund, if he is dismissed from work without just cause. The worker can request the Christmas withdrawal option through the FGTS application. After choosing this method, he must remain connected to it for a period of no less than 24 months.