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Caixa FGTS: the FGTS is a guarantee fund that guarantees a financial reserve to the worker when he is dismissed without just cause, but which can be withdrawn in other situations provided for by LAW.
The Severance Pay Guarantee Fund (FGTS) is an important and mandatory benefit for Brazilian workers, which makes a difference in certain situations.
Managed by Caixa Econômica Federal, the FGTS aims to protect workers in specific situations, such as unfair dismissal, serious illnesses, among others.
In this article, we will explore what the FGTS is, how it works, who is entitled to receive it and what are the main ways to use this resource.
What is FGTS?
THE Severance Pay Guarantee Fund (FGTS) is a benefit created by the Federal Government in 1966, with the objective of protecting Brazilian workers in times of financial difficulty, thus guaranteeing a type of “savings” that can be withdrawn in specific situations.
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How does Caixa FGTS work?
1. Contributions
The FGTS is made up of monthly contributions made by the employer on behalf of the employee, corresponding to 8% of the gross salary amount.
These resources are deposited in an account linked to the worker at Caixa Econômica Federal, which is the fund's operating agent.
2. Withdrawal in Specific Situations
The worker has the right to withdraw the FGTS amount in some specific situations, such as unfair dismissal, retirement, purchase of a home, serious illness, among others.
In some cases, it is possible to withdraw a portion of the FGTS annually, in accordance with rules established by the government.
Who is entitled to the FGTS Fund?
All workers governed by the Consolidation of Labor Laws (CLT) have the right to FGTS.
In addition, some rural, temporary, casual and seasonal workers, among others, are also entitled to the benefit, in accordance with current legislation.
Main Ways to Use FGTS
1. Acquisition of your own home
One of the main ways to use FGTS is to purchase a home. Workers can use the FGTS balance as part of the payment or to reduce the value of mortgage payments.
2. FGTS Fund: Dismissal without Just Cause
In the event of unfair dismissal, the worker has the right to withdraw the total balance of the FGTS, which can be an important help in overcoming the unemployment situation.
3. Serious Illnesses
In cases of serious illness, workers can withdraw their FGTS to pay for medical treatments or surgeries, thus ensuring financial support in difficult times.
The Severance Pay Guarantee Fund (FGTS) is, in fact, a fundamental benefit for Brazilian workers, providing financial security in specific situations.
Managed by Caixa Econômica Federal, the FGTS is an important tool for acquiring your own home, dealing with unemployment and paying for health treatments.
