How the Working Time Guarantee Fund Works


Some measures of worker protection are so essential that they are part of labor contracts by CLT (Consolidation of Labor Laws). This is the case of the FGTS (Working Time Guarantee Fund) .

The FGTS monthly payment corresponds to 8% of the gross salary as explained in our article ” Calculation of Net Salary ” and is deposited in an account with Caixa Econômica Federal. Keep reading to get all your doubts about how the FGTS works .

What is and what does mean?

The acronym, as mentioned above, means the Working Time Guarantee Fund and is a reserve of money belonging solely to the employee , designed to guarantee savings in cases of dismissal without just cause.

The Federal Constitution guarantees the FGTS as a right, so the value is not deducted from the salary but collected , since it is an obligation of the employer. All deposits, referring to all labor contracts, can be withdrawn by the worker in some cases that we will see later.

Who is entitled?

Every worker whose employment contract is governed by the CLT (Consolidation of Labor Laws) has the FGTS as a right. These are:

  • Employees of private companies;
  • Rural workers;
  • Temporary workers;
  • Individual workers;
  • Safreiros (temporary rural workers – work only at harvest time);
  • Professional athletes;
  • Non-employee director (at the discretion of the employer);
  • Domestic employee (at the discretion of the employer).

Who deposits the Time of Service Guarantee Fund?

Who deposits the Time of Service Guarantee Fund?

The employer, ie the contractor is responsible for filing the FGTS in the employee’s account.

What is the deposit amount?

The amount deposited corresponds to 8% of the worker’s salary , regardless of the total value of his monthly income and is collected from the gross salary. There is an exception in the case of a contract executed under Law 11,180 / 2005 (Learning Contract), making the payment to be 2%, and in case of domestic employee, increasing to 11.2%. In the latter case, 8% refers to the monthly deposit and 3.2% is an advance of the termination payment.

Remembering that the deposit must be made until the 7th day of each month (subsequent to the one worked). If deposited after the date (after expiration) must be added interest and monetary correction.

When can I use?

Now that you know what the FGTS is, you should be asking yourself when it is possible to make a withdrawal of the amount you have saved. There are some rules and you need to be able to withdraw money. See in which situations:

  • Dismissal without just cause;
  • At the end of the temporary employment contract;
  • Retirement;
  • Age equal or superior to 70 years;
  • Closing of the activities of the contracting company;
  • Absence of deposits for three years. The withdrawal is allowed as of the anniversary month of the account holder;
  • Worker outside the CLT regime for three years;
  • Property financing;
  • Natural disasters that have harmed the worker;
  • HIV carrier, malignant neoplasm or terminal illness (worker or dependent).

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How does the payment of the Guarantee Fund work?

It will depend on the condition in which the worker is able to withdraw the value of his account from the guarantee fund. In general it will be necessary to present an identification document with photo, Work Portfolio and PIS / PASEP number, in addition to specific documents.

The verification of the documentation has a period of 15 days and, if released, the worker will receive the money directly into his bank account.

How to consult the balance?

The payment is made monthly by the employer and the employee can consult this value whenever he wishes . The CPF can help in monitoring the balance of the FGTS, which is why through the number it is possible to consult the PIS (Social Integration Program), necessary to access the FGTS information.

In the upper right corner are the user data: name, CPF and NIT / PIS. With the PIS obtained with the help of the CPF, the CAIXA website can be accessed to consult the balance and statement of the FGTS. Another option, now with the PIS number in hand, is to access through the free FGTS application for your cell phone.

The application is a facility to have the extract always at hand. If you prefer or do not have access to a smartphone, there is the option to register the SMS (message via cell phone), an issue that we have explored in an article about receiving the balance of FGTS by cell phone. By SMS it is possible to receive in addition to the balance of the FGTS and movements in the account, the notice of release of service.

As an option, there is still the receipt by letter. The delivery is bimonthly and it is necessary to register at a CAIXA branch office or by calling 0800 726 01 01.

How to get?

The employee may withdraw the guarantee fund at any branch of the Federal Savings Bank. As stated in “When can I use FGTS?” Both the documents and the rules will vary depending on the reason for requesting the withdrawal.

In case of termination of employment contract, the employer must inform CAIXA. If you are able to receive, in only 5 working days the employee will be able to make the withdrawal.

The withdrawal can be made in two ways , depending on the amount:

  • Up to R $ 1,500.00: it is done at the ATM, using the password of the Citizen’s Card, lotéricas or stores with the “Caixa Aqui” brand, with an official document with photo, Citizen’s Card and respective password.
  • Between R $ 1,500.00 and R $ 3,000.00: follow the same rule above.
  • Starting at R $ 3,000.00: cash at ATMs located within the Caixa Econômica Federal branches, carrying an official document with a photo.

Withdrawal from the Guarantee Fund abroad – How does it work?

The worker residing outside the country can make the withdrawal with the help of the consulates of Brazil qualified and must, necessarily, follow one of the conditions mentioned below:

  • Termination without just cause by the employer;
  • Completion of the fixed-term contract;
  • Retirement;
  • Three uninterrupted years outside the CLT regime (hence the FGTS);

The amount will be deposited in up to 15 days in a bank account located in a bank in Brazil. If there is no account of the holder, it will be possible to indicate another person that is the trust of the applicant. See the list of documents required by reason on the CAIXA website.

What is the income?

The current yield of the guarantee fund is 3% interest per year + TR (Referential Rate).

Explaining better: according to Law no. 8,036, dated 05/11/1990, the employee receives monthly monetary adjustments (which vary according to inflation) according to the deposits made. This correction occurs every 10 days of the month following the deposit and is based on interest capitalization of 3% per year (pa).

What are the inactive accounts of the Guarantee Fund?

What are the inactive accounts of the Guarantee Fund?

With each contract concluded, the employee begins to receive his FGTS in a certain account of the CAIXA. The sum of all accounts is the result of the total available guarantee fund for withdrawal.

When an account is terminated by termination of a contract, it is considered inactive as it no longer receives the amounts deposited monthly even though it continues to yield interest and monetary corrections.

How is the account inactive?

As noted in the previous item, an FGTS account becomes inactive when it fails to receive the monthly amounts that are collected by the employer from the gross salary of the worker.

Who can withdraw the Guarantee Fund from inactive accounts?

Law 13466/17 permitted the drawing of inactive accounts within certain rules during the period from July 10 to 31, 2017. The employee whose contract had been terminated until December 31, 2015 was eligible to withdraw.

However, the deadline for requesting the withdrawal of inactive accounts is gone . Some specific cases may request until December 31, 2018:

  • The worker who during the withdrawal period was proven to be ill with an impediment disease;
  • The worker who was evidently serving a penalty during the period of service.

Documents needed to remove inactive FGTS

In the case of patients who were disabled to remove the FGTS from inactive accounts in 2017, it was necessary to present a medical report proving their absence, along with the documents presented in the item “How to withdraw the FGTS?”.

People who were detained at the time should present a certificate issued by the prison unit, Criminal Court or Criminal Enforcement, or by the judge who ordered the detention. In this case they should also bring the documents presented in the item “How to get FGTS?” From our article.

Ways to Use

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In an earlier article of our blog we mentioned some tips to use money from inactive FGTS accounts. Although this is no longer the case, there is still common draw, through the cases mentioned in the item “When can I use the FGTS?”.

The cash reserve is intended to momentarily assist the worker, supplying basic needs after dispensing from work, but may have a wiser end if the worker knows how to use.

We recommend two uses for FGTS money: debt settlement , goodwill and better access to credit or the application of money if there are no debts.

In the latter case, the application may be in the short term to form an emergency reserve (to assist with medical treatments, reforms or unexpected debts) or long term for the realization of dreams, such as the purchase of a property or the payment of studies.

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Changes and Labor Reform

Changes and Labor Reform

On November 10, 2017 came into force Law No. 13,467 / 2017, which regulates the labor reform. Prior to this reform, the worker with a CLT contract could withdraw his FGTS balance if he had been dismissed without just cause , as mentioned earlier in this article, which excluded dismissals with just cause and dismissal required by the worker himself.

Both that benefit, as well as unemployment insurance and a 40% fine on FGTS deposits were “lost.”

With the reform, the employer and the employee can rescind the agreement in common agreement (consensual termination) , bringing some guarantees for the worker such as the receipt of a 20% fine on FGTS deposits and the withdrawal of up to 80% of their balance. Unemployment insurance is still not valid.

The purpose of this measure is to prevent the employee from being forced to remain in a job because he fears loss of benefits and, on the employer’s side, to keep an employee whose performance is unsatisfactory because he can not afford to pay all the severance pay.

Citizen Card for the Guarantee Fund

Every citizen who owns FGTS (that is, is hired under the CLT scheme), PIS income, salary bonus or is receiving installments of unemployment insurance is entitled to the Citizen’s Card.

Citizen Card Benefits

Although not mandatory, it is useful to facilitate the withdrawal of amounts referring to social and labor benefits , since it can be used in all payment channels authorized by CAIXA. In these cases, it replaces the card referring to the Caixa Econômica Federal bank account.

It can be requested when there is a benefit to be received, at any bank branch of Caixa Econômica Federal or by phone 0800 726 0207. It is necessary to have the NIS number (found in the Work Portfolio) at hand.


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