The End of FGTS Withdrawals See Who Can Withdraw.

In a joint hearing of the Labor and Participatory Legislation Committees of the Chamber of Deputies, the future of the anniversary withdrawal from the Severance Indemnity Fund (FGTS) will be under discussion. The debate, scheduled for next Tuesday (3), will take place in plenary 3 from 10 am and was requested by deputies Evair Vieira de Melo (PP-ES) and Leonardo Monteiro (PT-MG). In this article, we will explore in detail what birthday loot is, the positions involved and the potential changes in play.

What is the Birthday Loot?

The FGTS birthday withdrawal was created by Law 13,932/19 and allows workers to withdraw part of the balance from their FGTS accounts annually, in the month of their birthdays. This modality offers workers the option of accessing a portion of their resources, providing greater financial flexibility. However, it is important to highlight that, when joining the birthday withdrawal, the worker is prevented from withdrawing the fund for two years, even in cases of unfair dismissal or property purchase.

Since its implementation in April 2020, approximately 28 million workers have opted for the birthday withdrawal, withdrawing a total of R$ 34 billion from the FGTS. This demonstrates that many Brazilians saw value in this modality, but it also generated a debate about its convenience.

The Positions Involved

The Minister of Labor, Luiz Marinho, has expressed his opposition to the anniversary looting. In January, he even announced the end of this modality, but retreated the following day, stating that the issue would be widely debated with the FGTS Board of Trustees and the trade unions.

On the one hand, defenders of the birthday withdrawal, such as deputy Evair Vieira de Melo, argue that this modality is an advantageous option for credit borrowers. They claim that it is voluntary, safe and offers competitive rates compared to those available on the market. For them, the extinction of the birthday withdrawal would not be beneficial either for workers or for the credit market.

On the other hand, critics, such as deputy Leonardo Monteiro, claim that the birthday loot has become a problem for workers. They argue that many are turning this withdrawal into a kind of 14th salary, which can result in lower balances when they really need it. Furthermore, if they are fired without just cause, they would have to wait a waiting period of 25 months to access that company's FGTS resources.

Potential Changes to Birthday Withdrawal

The Ministry of Labor forwarded a project to the Civil House that could significantly impact workers who joined the FGTS anniversary withdrawal. This measure aims to allow workers who used the birthday withdrawal as a guarantee to take out payroll loans to redeem the remaining amount in their FGTS accounts.

The justification behind this measure is to correct what is considered a distortion and injustice. Currently, those who opt for the birthday withdrawal can only withdraw the amount of the termination fine in case of dismissal, not the total amount of the FGTS account.

This proposal, if approved, could have a financial impact of up to R$ 14 billion, according to Ministry of Labor estimates. However, it is worth highlighting that this proposal still needs to be analyzed by President Lula before being forwarded to the National Congress.

The Context of the Birthday Loot

It is important to understand the context in which the FGTS anniversary withdrawal was created. In 2019, during the first year of former president Jair Bolsonaro's government, this modality was established with the aim of offering workers greater flexibility in accessing their FGTS resources. The idea was to allow workers to annually withdraw a percentage of their FGTS account balances in the month of their birthdays.

This percentage varies from 5% to 50% of the total balances in the FGTS accounts, plus an additional portion linked to the worker's balance. However, as mentioned previously, in the event of dismissal, the worker is only entitled to the termination fine, not the full amount of the FGTS account.

Conclusion

The future of the FGTS anniversary withdrawal remains under debate, with defenders and critics presenting convincing arguments. The Ministry of Labor's proposal to allow workers who used the birthday withdrawal as collateral for payroll loans to withdraw the remaining amount in their FGTS accounts adds a new layer of complexity to the discussion.

The final decision on the fate of the anniversary loot will depend on political negotiations and President Lula's analysis. Meanwhile, workers who have opted for this modality should closely monitor the proposed changes and consider how they may affect their personal finances.

In short, the debate surrounding the anniversary looting of the FGTS highlights the importance of balancing workers' financial flexibility with the need to protect their long-term resources, maintaining a system that promotes both access and financial security.

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