THE Severance Pay Guarantee Fund, The FGTS, popularly known as FGTS, is a labor right guaranteed to all workers with a formal employment contract in Brazil. It functions as a kind of mandatory savings account, where the employer deposits a monthly amount corresponding to 81% of the employee's salary into an account linked to the worker. But, ultimately, is it possible to withdraw FGTS funds at a lottery outlet? In this article, we will clarify this question and explain how you can access your money.

What is FGTS?

Before we get into the details of how to withdraw FGTS funds at a lottery outlet, it's important to understand what FGTS is and why it exists.

The FGTS (Severance Indemnity Fund) was created in 1966 as a way to protect workers in cases of dismissal without just cause, serious illnesses, retirement, purchase of a home, and other specific situations. The goal was to guarantee a financial reserve for the worker, providing them with financial security during critical times.

How does the FGTS work?

The FGTS (Brazilian Severance Indemnity Fund) works simply: the employer deposits a monthly amount equivalent to 81% of the employee's salary into an account linked to the worker at Caixa Econômica Federal (Brazilian Federal Savings Bank). These deposits are made in the worker's name and cannot be deducted from their salary.

The money deposited in the FGTS account cannot be freely accessed by the worker. It accrues interest and inflation adjustments over time, and withdrawals are only permitted in specific situations, as previously mentioned.

The Guarantee Fund for Length of Service (FGTS) offers several advantages for Brazilian workers, contributing to financial security and access to specific benefits. Here are some of the main advantages of the FGTS:

  • Financial Reserve: The FGTS (Brazilian Severance Indemnity Fund) functions as a kind of compulsory savings, as the employer deposits a monthly amount equivalent to 81% of the worker's salary into a linked account. This reserve can be used in times of need, such as dismissal, retirement, serious illness, or the purchase of a home.
  • Financial Stability in Cases of Unjustified Dismissal: In the event of dismissal without just cause, the worker is entitled to receive the balance of the FGTS (Brazilian severance pay fund) accumulated during their employment with the company. This provides a financial safety net in situations of involuntary unemployment.
  • Possibility of Buying Your Own Home: The FGTS (Brazilian employee severance fund) can be used to finance the purchase of a home, either as a down payment or to pay off the outstanding balance. This advantage makes the dream of homeownership more accessible to many workers.
  • Amortization or Payment of Mortgage Installments: In addition to financing the purchase of a home, the FGTS (Brazilian employee severance fund) can be used to amortize the outstanding balance or pay part of the installments of an existing mortgage, reducing the value of the monthly payments.

Is it possible to withdraw FGTS (Brazilian severance pay fund) at a lottery outlet?

A common question among workers is whether it's possible to withdraw FGTS (Brazilian severance pay fund) at a lottery outlet. The answer is yes, but with some caveats.

You can withdraw your FGTS (Brazilian severance pay fund) at a lottery outlet, provided the amount to be withdrawn is up to R$1,500.00. Above this amount, the withdrawal must be made at a Caixa Econômica Federal branch. For amounts up to R$500.00, it is possible to use Caixa ATMs or the Caixa Tem app, if you have a savings account with the institution.

Furthermore, it's important to check if you meet any of the criteria for withdrawing FGTS funds, such as dismissal without just cause, retirement, purchase of a home, among others. If you meet the established conditions, you can withdraw your FGTS at a lottery outlet or at a Caixa Econômica Federal branch.

How to withdraw FGTS (Brazilian severance pay fund) at a lottery outlet?

To withdraw your FGTS (Brazilian severance pay fund) at a lottery outlet, follow these steps:

  • Check the Amount: Make sure the amount to be withdrawn is up to R$ 1,500.00. If it is higher, you will need to go to a Caixa branch.
  • Documentation: Bring a photo ID, such as a national identity card or driver's license, and your Citizen Card, if you have one. The Citizen Card facilitates withdrawals at lottery outlets and ATMs.
  • Balance Inquiry: Before going to the lottery outlet, it is recommended to check the available balance in your FGTS account. This can be done on the Caixa website or through the FGTS app.
  • Go to a lottery outlet: Go to a lottery outlet near your home and tell the attendant that you wish to withdraw your FGTS (Brazilian severance pay fund). They will ask for your documents and check if you are eligible for the withdrawal.
  • Receiving the Money: After confirmation, the attendant will process your withdrawal and hand over the cash.

Remember that FGTS withdrawals must be made within the timeframe stipulated by Caixa Econômica Federal, which is usually a few months from the date you meet one of the permitted withdrawal criteria.

Situations in which it is possible to withdraw FGTS (Brazilian employee severance fund).

As mentioned earlier, FGTS funds can only be withdrawn in specific situations. Here are some of them:

  • Dismissal without just cause: If you are dismissed without just cause, you have the right to withdraw the FGTS (Brazilian severance pay fund) deposited during the period you worked at the company.
  • Retirement: When you retire, you can withdraw your FGTS (Brazilian employee severance fund) as a way to supplement your income.
  • Buying a Home: The FGTS (Brazilian employee severance fund) can be used as part of the payment or to settle the outstanding balance of a mortgage.
  • Serious Illnesses: In cases of serious illness, you can withdraw funds from your FGTS (Brazilian employee severance fund) to cover medical treatment costs.
  • Death of the Worker: In the event of the worker's death, the dependents are entitled to withdraw the FGTS (Severance Indemnity Fund).
  • Advanced Age: Starting at age 70, workers can withdraw their FGTS (Brazilian severance pay fund) even if they are still working.

The FGTS (Brazilian Severance Indemnity Fund) is a right of Brazilian workers, and knowing how to withdraw it is fundamental to guaranteeing your financial security in times of need. If the amount to be withdrawn is up to R$ 1,500.00, it is possible to make the withdrawal at a lottery outlet, provided you meet one of the permitted conditions.

Make sure to check your balance, have the necessary documents on hand, and respect the deadlines established by Caixa Econômica Federal. With this information in mind, you will be ready to access your FGTS funds when needed, whether at a lottery outlet or a Caixa branch. Always remember to seek updated information, as rules and conditions may change over time.

See also: How can I get assistance through Brasil Sorridente? Learn more here.

September 28, 2023