FGTS: how it works, values and step by step
Not sure what FGTS is and how it works? So, discover all this and other information about the benefit here.
Has your budget tightened? So, the good news is that the FGTS is a benefit granted to workers in times of difficulty or even to make dreams come true. And it is possible that the withdrawal will be available to you!
Want to know the best part? Benefit consultation and withdrawal can be carried out 100% online in a few simple steps.
Interested in understanding more about this benefit? So, keep reading this article until the end to find out how it works, its value, how to withdraw and much more!
What is the FGTS?
The Service Time Guarantee Fund (FGTS) is a benefit created by the Brazilian government in 1966 to protect workers.
Therefore, it is made up of monthly deposits made by the employer into an account opened at Caixa Econômica Federal, in the worker's name.
Furthermore, these deposits correspond to a percentage of the employee's salary and function as a type of emergency reserve, which the worker can withdraw in specific situations provided for by law.
How does FGTS work?
The FGTS works as a type of forced savings that can be accessed in times of need. Furthermore, the fund contributes to the employee's financial stability in specific cases.
Want to better understand how this benefit works? So, check out more details about it below.
What is the value of the benefit?
Each worker has an account in which their FGTS is deposited. More specifically, the amount deposited monthly is 8% of the worker's salary or 2% in the case of a Young Apprentice.
Furthermore, deposits are monetarily adjusted and account balances receive an annual interest update.
In other words, the money saved will earn interest, just like savings accounts and other investment options.
It is also important to remember that the deposit is made every month. This continues to apply to those who are away from work for some reasons, such as:
- During your vacation period;
- When you take maternity or paternity leave;
- On leave due to mandatory military service;
- Work accidents;
- In the first 30 days of sick leave;
- In addition to other cases of paid absence.
Situations in which the benefit can be withdrawn
As mentioned above, the FGTS works as a type of emergency reserve which, therefore, aims to financially support the worker at certain times.
Be it, for example, in difficult times, such as dismissal or a serious illness, or even in important ones, such as acquiring your own home.
Therefore, this means that it cannot be withdrawn at any time, but only in specific situations. See some of them below:
- Dismissal without just cause;
- Buying your own home;
- Retirement;
- Serious diseases;
- Death of the worker (in this case, dependents are entitled to withdrawal);
- Termination of the contract for a fixed period;
- Natural disasters in areas recognized by the government;
- When you have been unemployed for 3 years or more;
- Among other cases provided for by law.
However, it is important to highlight that each of these situations has specific criteria that need to be met in order for you to have access to the FGTS balance.
How to check and withdraw the FGTS?
As seen throughout the content, the FGTS is a benefit granted to Brazilian workers. It can be used however, wherever and whenever the beneficiary wants.
But after all, how to consult and withdraw? The process can be done online, through the FGTS application itself. If there is a balance available, the amount can be withdrawn within 5 business days!
