You worked hard, fulfilled your obligations, and finally the long-awaited moment arrived: withdrawing your FGTS (Severance Pay Guarantee Fund). However, upon checking your account, you realized the money hadn't been deposited. What to do when your FGTS doesn't appear in your account? This blog post will explain what might be happening and how you can effectively resolve this situation.

Understanding the FGTS (Brazilian Severance Indemnity Fund)

Before we delve into the details of what to do when FGTS (Severance Pay Guarantee Fund) is not deposited, it's important to understand what the FGTS is. FGTS is a right of all Brazilian workers with a formal employment contract. The employer is obligated to deposit monthly an amount equivalent to 81% of the worker's salary into a linked account. This money is used in specific situations, such as buying a home, retirement, serious illnesses, or dismissal without just cause.

The Guarantee Fund for Length of Service (FGTS) is a system created by the Brazilian government to protect the rights of workers with formal employment contracts. It functions as a kind of forced savings account, where the employer is obligated to make monthly deposits into a linked account in the worker's name. Below, I will explain in detail how the FGTS works:

1. Who is entitled to FGTS (Brazilian severance pay fund)?

All Brazilian workers with formal employment contracts, whether they are employees of private companies, domestic workers, rural workers, temporary workers, casual workers, or professional athletes, are entitled to FGTS (Severance Indemnity Fund).

2. How much is deposited into the FGTS (Brazilian Severance Indemnity Fund)?

The employer is responsible for depositing monthly into a linked FGTS account an amount equivalent to 8% of the worker's gross salary. This amount is deducted from the salary, but is not directly transferred to the worker. It is deposited into a specific account in the employee's name at Caixa Econômica Federal.

3. FGTS Linked Account

Each worker has an account linked to the FGTS (Brazilian Severance Indemnity Fund), which is automatically opened when they are hired for formal employment. This account is individual and accompanies the worker throughout their professional life, even if they change jobs.

Checking the Status of the FGTS Account

The first thing to do when your FGTS (Brazilian severance pay fund) payment hasn't been deposited into your account is to check your FGTS account status. You can do this in several ways:

  • Caixa Econômica Federal website: Caixa Econômica Federal is the institution responsible for managing the FGTS (Brazilian Severance Indemnity Fund). Access the Caixa website and look for the FGTS consultation option. You will need to provide your NIS/PIS/PASEP number and a registered password.
  • FGTS App: You can also download the official FGTS app and check your balance and transactions there. Just log in with your credentials.
  • Caixa branches: If you prefer in-person service, go to a Caixa Econômica Federal branch and ask an employee for assistance. Bring your personal documents and your NIS/PIS/PASEP number.

Possible Reasons Why FGTS (Brazilian Severance Indemnity Fund) Not Being Deposited into the Account

If, after checking your account status, you find that your FGTS (Brazilian severance pay fund) has not been deposited, it's important to understand the possible reasons:

  • Late Deposit: In some cases, the employer may delay the FGTS (Brazilian severance fund) deposit. In this case, it is important to check if the delay is recurring and, if so, talk to the employer or the company's human resources department.
  • Registration Issues: Errors in the worker's registration, such as an incorrect NIS/PIS/PASEP number, can prevent the correct deposit of FGTS (Brazilian severance pay fund). Make sure your registration information is up to date.
  • Contract Termination: If you were dismissed without just cause, the employer has a deadline to deposit your FGTS (Brazilian severance fund). This deadline varies according to the current rules and it may be necessary to wait a while until the money is released.
  • Company Problems: In more serious situations, the company may be experiencing financial difficulties that prevent it from making FGTS (Brazilian employee severance fund) deposits. In this case, it is important to seek legal and union guidance to protect your rights.

What to do when your FGTS (Brazilian severance pay fund) doesn't deposit into your account.

Now that you've identified the reason why your FGTS (Brazilian severance pay fund) hasn't been deposited into your account, it's time to take steps to resolve the situation:

  • Talk to your employer: If late payments are a recurring problem, talk to your employer or the company's human resources department. Inform them about the situation and ask them to regularize the payments as soon as possible.
  • Update your registration information: If the problem is related to incorrect registration information, contact Caixa Econômica Federal to update it. This can be done online or at a branch.
  • Follow up on your contract termination: If you were dismissed without just cause, pay attention to the deadline for the FGTS (Brazilian severance fund) deposit. If it is not made within the deadline, contact the company and, if necessary, seek legal counsel from an employment lawyer.
  • Seek Legal Advice: If the company is facing financial difficulties and FGTS (Brazilian employee severance fund) deposits have not been made for an extended period, it is important to seek legal and union advice to protect your rights and take the necessary steps.

The Guarantee Fund for Length of Service (FGTS) is an important right for Brazilian workers, and it is essential to ensure that deposits are made correctly and in accordance with the law. If your FGTS has not been deposited into your account, follow the steps mentioned above to identify the cause and resolve the problem as quickly as possible. Remember that Caixa Econômica Federal is the institution responsible for managing the FGTS and can provide further guidance.

Be persistent in pursuing your rights and be aware that, in more complex cases, legal assistance may be necessary to ensure you receive what is owed to you. Do not hesitate to seek legal support when needed, as your FGTS (Brazilian severance pay fund) is an important resource for your financial future.

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

October 6, 2023