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The Lula government is about to end the FGTS anniversary withdrawal, promising to make it easier to access payroll loans. The decision is facing resistance in Congress, which fears an increase in interest rates. What will become of Brazilians in this new financial era?
Lula's government is about to end FGTS anniversary withdrawals, promising to facilitate access to payroll loans. The decision finds resistance in Congress, who fears rising interest rates. What will become of Brazilians in this new financial era?
Behind the scenes of economic policy, a decision could change the relationship between Brazilians and the Severance Pay Guarantee Fund (FGTS).
Without fanfare, the government of Luiz Inácio Lula da Silva (PT) is about to put an end to a method that, for years, has allowed workers to withdraw part of their funds annually.
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The decision to end the anniversary withdrawal, as revealed by the Minister of Labor, Luiz Marinho, is part of a larger plan to expand workers' access to lines of credit.
In an interview with the G1 portal this Friday (13), Marinho confirmed that President Lula has already authorized the measure, aiming to offer new financial alternatives for those who depend on the FGTS as collateral.
According to the minister, Lula has been pushing for the project to be implemented quickly, saying: “Where is the loan? We are going to offer a right to people who currently have no coverage anywhere.”
The anniversary withdrawal, which allows the worker to withdraw part of the FGTS balance annually, in the month of his/her birthday, is in the crosshairs of change.
Currently, It is possible to anticipate up to five years of withdrawals, through loans with interest, which has become an option for many Brazilians facing financial difficulties.
However, the rule has a drawback: in case of dismissal, the worker only has the right to withdraw the 40% fine on the FGTS balance, without being able to access the total amount deposited.
More credit for workers, but with risks
The government's proposal aims to facilitate access to payroll loans without the need for authorization from the employing company.
According to the new model, the The banking institution responsible for the loan would inform the company directly, which would only transfer the portion of the salary to pay off the contracted credit.
This could increase workers' adherence to the payroll model., especially those who are unable to fully benefit from the anniversary withdrawal.
The project also considers that withdrawal periods already open can be closed or automatically converted to the payroll loan modality. This movement, however, has encountered resistance in Congress.
Parliamentarians express concern about interest rates on loans, which may be higher than those currently practiced in the anniversary withdrawal. For many, the proposal needs biggest debate and an assurance that the change will be well received by the National Congress.
The political and economic battle
Despite internal support from the government and the Civil House, the proposal faces opposition among parliamentarians, mainly due to the possible rise in interest rates.
As Marinho revealed, dialogue with political leaders, including Arthur Lira (PP), president of the Chamber of Deputies, has already begun. However, he admits that the project's guidelines still need to be “internally agreed” with Congress.
Parliamentary resistance is directly linked to the fear that workers, when migrating to the consigned loan, end up paying more for the credit, which could result in even greater debt.
Leaders in Congress are waiting for the government to present a solution that allows “changing the modality and maintaining the current interest rate standard”, ensuring that workers are not financially harmed.
Economic impact of anniversary withdrawal from FGTS
The numbers are impressive. In 2023, the anniversary withdrawal moved R$ 38,1 billion. Of this total, R$14,7 billion went directly into workers' pockets, while R$23,4 billion went to financial institutions, as a guarantee for credit operations. These data make clear the significant economic impact of the modality, both for workers and for the financial system.
The expectation is that the new model can bring more security and advantages to workers., without them losing their current benefits. However, the discussion is far from over. and will still undergo many adjustments before its final implementation.
what is at stake?
With the end of the anniversary withdrawal, the worker will, in theory, more encouraged to opt for payroll loans, which uses the FGTS balance as collateral.
However, this transition needs to be carefully planned so as not to financially harm the most vulnerable workers.
The government is betting that the change will bring more security and accessibility to credit, but viability depends on political consensus and guarantees that interest rates do not skyrocket.
Is Brazil prepared for this change in the FGTS? Will the payroll loan really be a more advantageous alternative for Brazilian workers? Tell us your opinion on the subject in the comments, reader!
