The government can indeed bring forward the FGTS anniversary withdrawal. But before celebrating or making any decision, it's essential to understand how it works, what the rules are, and whether this is a good option for your finances.

What is the FGTS anniversary withdrawal?

The birthday withdrawal is a modality that allows workers to withdraw part of their FGTS balance every year, in the month of their birthday. Unlike the termination withdrawal, this option prevents the worker from withdrawing the total balance of the account in case of dismissal without just cause, leaving only the severance penalty of 40%.

Created in 2019, this option emerged as a way to give workers more financial freedom, allowing them to use part of their FGTS balance without needing an emergency situation. However, enrollment is not automatic, and the worker must request this option.

How does the early withdrawal of the birthday benefit work?

The early withdrawal of the anniversary benefit works like a loan. The worker can advance the amounts they would receive in the coming years, using their FGTS balance as collateral. This type of operation is offered by banks and has lower interest rates than other loans, since the payment is guaranteed by the FGTS balance.

This option is gaining popularity because it allows quick access to money held in the FGTS (Brazilian employee severance fund). Banks release the amount according to the available balance, and payment occurs automatically, reducing the risk of default.

Will the government bring it forward?

In recent months, rumors have surfaced about a possible government measure to facilitate early withdrawal of birthday benefits. This could mean better conditions for workers to access the money or even a relaxation of current rules. However, at the moment, any change depends on official measures that are still under discussion.

If the measure is approved, it is expected that more workers will be able to access their FGTS (Brazilian severance pay fund) balance in advance, with less bureaucracy. This move is part of an effort to stimulate the economy and ensure that more people can cope with their financial difficulties without resorting to loans with abusive interest rates.

Is it worth planning ahead?

That depends on your financial situation. If you have high-interest debts, such as credit card debt, it may be advantageous to use the advance payment to pay them off. However, if you are financially stable, it may be better to keep the balance in your FGTS (Brazilian employee severance fund), which earns interest and can be used in emergencies.

Another point to consider is that, by anticipating the withdrawal, the worker gives up part of the balance that could be available in the future. It is important to assess whether the amount released now will truly bring benefits or if it will only be a momentary relief without proper planning.

Experts recommend that early withdrawal of birthday benefits be done cautiously and, if possible, used for investments or paying off urgent debts. Otherwise, it may not be worth giving up that balance.

How do I request an advance?

If you decide to withdraw the funds early, the process is simple. Just check if your bank offers this option, review the interest rates, and authorize the transaction through the FGTS app or directly with your chosen financial institution.

Each bank has its own terms and conditions, such as minimum installment amounts and applicable fees. It's essential to compare the available options to ensure you make the best choice.

Alternatives to the birthday withdrawal

If withdrawing your birthday benefits early doesn't seem like a good option for you, there are other ways to access financial resources without compromising your FGTS balance. Some alternatives include:

  • Payroll loansOption with lower interest rates, deducted directly from payroll.
  • Debt renegotiationIf the goal is to settle outstanding debts, negotiating directly with creditors may be more advantageous.
  • Emergency fundBuilding up savings for unexpected events avoids the need to pay money upfront.

Evaluating all available options helps in making a more informed and beneficial decision in the long run.

The government may announce new developments regarding the early withdrawal of FGTS (Brazilian severance fund) anniversary payments, but it's essential to pay attention to the rules and carefully evaluate them before making any decision. If you need the money and the conditions are advantageous, it could be a good option. 

The most important thing is to ensure that any financial decision is made with planning and awareness. Keep an eye on updates and always evaluate what makes the most sense for your financial future!

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February 9, 2025