Portuguese 
English 
Spanish 
4 min of reading 
0 comments 
The Government’s Proposal Seeks to Restrict the Anniversary Withdrawal of FGTS to a Maximum Limit of Two Years of Anticipation, After Detecting Offers from Banks That Advanced Up to 12 Installments and Compromised the Future Balance of Workers
The Anniversary Withdrawal of FGTS is Set to Undergo a Significant Change. The Government Aims to Limit the Anticipation of Amounts to Only Two Years, Putting an End to Offers from Financial Institutions that Advance Up to 12 Future Installments with Interest Charges.
The Proposal, Drafted by the Ministry of Labor, Will be Voted on by the FGTS Curator Council and Aims to Protect the Balance of Workers and Preserve the Resources of the Fund, Following the Rise of Contracts that Compromise a Significant Portion of the Money That Should Serve as Emergency Reserves in Case of Dismissal.
What Changes in the Anticipation of Anniversary Withdrawals
According to G1, Currently, Banks and Financial Institutions Allow Workers to Advance Several Years of the Anniversary Withdrawal of FGTS, Converting the Benefit into a Kind of Secured Payroll Loan Based on the Fund.
-
Larger than entire cities in Brazil: BYD is building a 4.6 km² complex in Bahia with a capacity for 600,000 vehicles per year, but the discovery of 163 workers in conditions analogous to slavery has shaken the entire project.
-
With an investment of R$ 612 million, a capacity to process 1.2 million liters of milk per day, Piracanjuba inaugurates a mega cheese factory that increases national production, reduces dependence on imports, and repositions Brazil on the global dairy map.
-
Brazilian city gains industrial hub for 85 companies that is equivalent to 55 football fields.
-
Peugeot and Citroën factory in Argentina cuts production by half and opens a layoff program for more than 2,000 employees after Brazil drastically reduced purchases of Argentine vehicles.
In Some Cases, Anticipation Reaches 12 Years of Installments, Which, According to the Government, Reduces the Amount Available in the Long Term and Increases the Risk of Over-Indebtedness.
With the New Proposal, The Limit Would be Reduced to Two Years, and It Would be Prohibited to Enter into Multiple Anticipation Contracts with Different Institutions.
The Goal is to Restrict the Commitment of Future Balances and Provide More Predictability to Fund Management.
The Reason for the Change
Minister of Labor, Luiz Marinho, Has Been Advocating for Months for a Deep Review of the Anniversary Withdrawal, Arguing That the Model “Infringes the Social Function of FGTS,” Created to Support Workers in the Event of Unemployment.
According to Him, Many Brazilians Have Used the Benefit as Advanced Credit, Which Undermines the Original Protection of the Fund.
The Economic Team Acknowledges, However, That Ending the Anniversary Withdrawal Would Require a Change in the Law, Which Depends on Support in the National Congress.
Therefore, the Government Opted to Act Through the Curator Council, Which Has the Power to Adjust Operational Rules, Such as Limits of Anticipation and Conditions of Adherence.
The Impact on Workers and Banks
Currently, More Than 21.5 Million People Have Joined the Anniversary Withdrawal, Representing Half of the 42 Million Active Workers with a Balance in FGTS.
For Many, the Mechanism is a Way to Access Money Quickly Without Having to Face Banking Bureaucracy.
Financial Institutions, on the Other Hand, See the Model as A Low-Risk Line of Credit, Since the Payment is Deducted Directly from the FGTS Balance.
With the New Limit, Banks are Expected to Lose Part of This Market, and the Government Hopes to Reduce the Number of Long-Term Contracts with High Interest Rates.
Industry Experts Say the Measure May Reduce Workers’ Liquidity in the Short Term, but Brings More Security to Prevent Them from Compromising Their Reserves for Many Years.
“It’s a Way to Restore the FGTS’s Role of Protection Rather Than Indebtedness,” Analysts Evaluate.
The Future of the Anniversary Withdrawal
The Proposal Will be Voted on This Tuesday by the FGTS Curator Council, Which is Composed of Representatives of the Government, Workers, and Employers.
The Expectation is That the New Limit Will Come into Effect This Year if Approved.
Although the Government Has Not Yet Sent the Project to Congress That Foresees the End of the Anniversary Withdrawal, the Strategy to Gradually Restrict the Use of Anticipation Reflects the Progress of Luiz Marinho’s Agenda to Reformulate the Functions of FGTS.
Sources from the Economic Team Indicate That the Goal is to Reduce the Use of the Fund as a Credit Instrument and Return to Its Nature of Workers’ Savings, Focused on Housing, Infrastructure, and Job Protection.
The Change in the Anniversary Withdrawal of FGTS Reignites the Debate Between Financial Freedom and Job Security.
On One Side, the Government Wants to Prevent the Fund from Being Compromised; on the Other, Millions of Brazilians Depend on This Anticipation to Alleviate Their Budget.
And You, Do You Think That the Two-Year Limit is a Fair Measure to Protect Workers or a Setback That Restricts Access to Their Own Money? Leave Your Opinion in the Comments — We Want to Hear from Those Who Have Used or Plan to Use the Anniversary Withdrawal.
-
Uma pessoa reagiu a isso.