The Brazilian federal government is set to introduce a significant measure allowing 12.1 million workers access to their previously inaccessible Fundo de Garantia do Tempo de Serviço (FGTS) funds, particularly those who opted for the anniversary withdrawal option since its inception.
During a press conference on Wednesday, February 26, Minister of Labor Luiz Marinho announced the forthcoming provisional measure, scheduled for publication on Friday, February 28. With this measure, employees who were dismissed between January 2020 and the publication date and had chosen the anniversary withdrawal will be able to reclaim their funds, which became inaccessible following their decision to withdraw early.
According to Minister Marinho, approximately 53% of workers with balances in FGTS accounts have not opted for this system, acknowledging the lack of clarity provided to those who did. He stated, "A significant portion was not adequately informed about the consequences of losing their jobs, which would prevent them from accessing their funds if they made this choice." Marinho emphasized, "This release is the workers' right; if they made this decision without full knowledge of the repercussions, it’s unjust to punish them."
The payments will occur over two phases: the first payment, capped at R$ 3,000, will be made between March 6 and March 10, 2025, with specific dates depending on the worker's birth month. Workers with accounts at Caixa, the largest public bank, will see funds deposited on the first day, March 6. Others with accounts across different banks will have staggered payments based on their birth months.
For those with balances under R$ 3,000, they will receive their total amount as one lump sum within the same timeframe. Remarkably, the minister pointed out, about 93.5% of active accounts (approximately 11.4 million workers) fall within this category, meaning they will receive their full allowance quickly.
The anniversary withdrawal system, which began during the administration of former President Jair Bolsonaro, allows formal workers to access part of their FGTS annually during their birthday month. This presents some risks, as opting for this method prohibits individuals from withdrawing their total FGTS balance for two years upon termination. Participation is optional, allowing workers to choose the standard model, where they can withdraw all funds upon resignation.
Further emphasizing the behind-the-scenes rationale for the new measure, Marinho indicated, “This step acknowledges the systemic issue and addresses it. While the government will implement clarifications on how the system works, it won't abolish the existing withdrawal model.” The minister noted the government had considered ending the anniversary withdrawal entirely but concluded such action lacked support from lawmakers, dubbing it unnecessary interference.
Nevertheless, Marinho underscored the importance of privatization. He reaffirmed, “This measure isn't motivated by any shift in popularity for President Luiz Ignacio Lula da Silva; our focus has always been on justice for workers.” He provided reassurance to the public, stating, “This release of R$ 12 billion will not jeopardize the fundamental integrity of the FGTS as a resource pool.”
By implementing these adjustments and demanding clearer communication, Marinho aims to rectify the past confusion surrounding workers' rights relating to FGTS withdrawals. Moving forward, adherence to the altered structure, where individuals opting for the anniversary withdrawal must be fully informed of the associated restrictions, is expected. Future opt-ins will require workers to be cognizant of the potential risks they undertake.
All indicators suggest this moment marks both economic and moral progress for the current administration, as they work to remedy the injustices perceived to be caused by prior regulations.