Minister Paulo Guedes (Economy) said this Tuesday (22) that the government can make the use of FGTS resources (Fundo de Garantia do Tempo de Serviço) more flexible until the end of the year. He said that there are people experiencing difficulties while they have money available in the fund.
“There are several initiatives that we can have until the end of the year that should help the economy to grow. We can also mobilize FGTS resources, because they are private funds”, he said at an event held by the BTG Pactual bank.
“These are people who have resources there and who are experiencing difficulties. Sometimes the guy owes money in the bank and is a creditor in the FGTS. Why can’t he withdraw this account and settle his debt on the other side?”, he asked.
On the eve of the electoral calendar, the government has sought to use public coffers or unlock other resources that have popular appeal. At the same event, Guedes said that the government is preparing a 25% cut in the IPI (Tax on Industrialized Products) — which can reduce the costs of home appliances and automobiles, for example.
The FGTS, a kind of worker’s savings, can only be withdrawn in certain situations – such as unfair dismissal, cases of serious illness and purchase of property.
The government had already made the use of resources more flexible in July 2019, when it instituted the so-called birthday loot. The measure started to allow the worker to withdraw annually, in the month of his/her birthday, a part of the accumulated balance.
Whoever joins the birthday loot, however, loses the right to withdraw the funds in case of dismissal without just cause (the 40% fine is still valid).
It also became possible to use the FGTS as collateral in certain credit operations. In the government’s assessment, the measure provided a cheaper and more accessible loan and could also have structural impacts on the labor market, with an increase in productivity and the potential to reduce worker turnover.
Analysis carried out by the Ministry of Economy six months ago concluded that, in 2019, there were 1.1 million adhesions to the FGTS anniversary withdrawal. In 2020 (until August), there were over 6.5 million workers.
There were 7.1 million withdrawal operations in 2020 and BRL 8.4 billion were handled, which is equivalent to an average withdrawal of BRL 1,178 per worker.
In terms of credit contracting that became possible using the FGTS, there were almost 1.6 million operations in 2020 – with a contracted value of R$3.8 billion, which is equivalent to an average of R$2,439 per operation. In 2021, there were 5.8 million operations until August, with a total contracted value of R$7.9 billion – an average of R$1,369 per contract.
Every Brazilian worker with a formal employment contract, governed by the CLT (Consolidation of Labor Laws), is entitled to the FGTS. Also included are domestic, rural, temporary, intermittent, independent workers, safreiros (rural workers who work only during the harvest period) and professional athletes.
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