The Severance Indemnity Fund (FGTS) is one of the most important benefits for workers in Brazil. Created to ensure the employee's financial stability, the FGTS consists of monthly deposits made by the employer into an account linked to the employee. But the question arises: can the FGTS be deducted from wages? Let's explore this question in detail.
What is FGTS and How Does It Work?
The Severance Indemnity Fund (Fundo de Garantia do Tempo de Serviço), popularly known as the FGTS, is a fundamental instrument of the Brazilian labor system. Established in 1966, the FGTS's main objective is to provide workers with a financial reserve for specific situations throughout their professional lives.
The FGTS (Fund for Severance Indemnity Fund) system is quite simple. Each month, the employer is required to deposit the equivalent of 8% of the employee's salary into a linked account at Caixa Econômica Federal. This amount is intended to create a financial reserve, which can be accessed in circumstances provided for by law, such as unfair dismissal, housing acquisition, retirement, or serious illness.
The amount deposited into the worker's linked account is adjusted periodically, usually according to government-set indexes. Furthermore, the FGTS can be used in a variety of ways, such as financing a home through the Minha Casa, Minha Vida program, amortizing or paying off outstanding mortgages, and even as part of the tuition for higher education.
This multifunctional feature of the FGTS makes it a versatile tool for workers, providing benefits that go beyond simply providing a reserve for emergencies. The possibility of using it in different areas, especially in housing, contributes to the realization of personal and family projects.
FGTS Discount on Salary: Understand the Limitations
Brazilian labor law is clear about the compensatory nature of the FGTS. It is an employee's right, and its value cannot be deducted directly from the employee's salary. In other words, the employer is not permitted to subtract the 8% allocated to the FGTS from the employee's monthly salary.
Any such practice constitutes a violation of labor law, subject to legal sanctions and penalties. The FGTS's nature as a guarantee of workers' fundamental rights prevents it from being used as a tool for compensation or deductions from other obligations.
Legal Discounts and Exceptions
Although the FGTS is protected from direct deductions, it's important to note that other legal deductions may be applied to a worker's salary. Taxes, social security contributions, alimony payments, and other legal deductions may be applied monthly.
However, these deductions differ from the FGTS (Unemployment Guarantee Fund) because they do not affect the total amount of the Guarantee Fund deposited in the worker's linked account. Each legal deduction has its own rules, and the FGTS remains unaffected by these deductions.
The Importance of FGTS in the Life of a Worker
The FGTS (Fund for Severance Indemnity Fund) plays a crucial role in the financial lives of Brazilian workers. Besides providing a financial cushion in times of need, such as job loss, it also contributes to housing financing through the Minha Casa, Minha Vida (My House, My Life) program and can be used to pay part of the tuition fees for higher education.
Its main function, however, is to serve as a guarantee for workers, providing a safety net in times of economic instability. It's a benefit that aims to protect employees and ensure they have resources available in critical situations.
FGTS as a Non-Negotiable Right
In short, the FGTS is a non-negotiable worker's right, protected by specific laws that prohibit its direct deduction from wages. Any attempt to deviate from this rule constitutes a labor violation, subject to legal action.
It's essential that workers understand their rights and are aware of legal practices in the workplace. If irregularities occur, it's recommended to seek legal advice to take appropriate action and ensure the preservation of labor rights.
Therefore, it is clear that the FGTS cannot be deducted from wages, being a sacred right of the Brazilian worker, based on the search for justice and equity in labor relations.
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January 14, 2024
Graduated in Literature – Portuguese/English, and creator of the website Successful Writer, seeks to expand everyone's knowledge with relevant information on a variety of topics, as a writer. At Vaga de Emprego RJ, she provides opportunities and tips on the job market.