The FGTS is an old benefit that guarantees a reserve for every Brazilian worker who has a formal contract. In general, companies deposit an amount into an account each month for each employee for this benefit. Upon receiving unfair dismissal, the worker has the right to receive the balance in the account of their preference.

However, what many people don't know is that there are several ways to anticipate receiving the FGTS. Furthermore, depending on the form of advance payment, the beneficiary still has the option of requesting it via cell phone through the app. On the other hand, before anticipating the FGTS, it is important to understand that this amount serves to protect the worker.

This means that the FGTS balance serves to support the person who has just lost their job. Therefore, in some cases it may not be a good idea to ask for advance payments. It is also worth mentioning that in some moments of economic crisis, the government itself releases looting with the aim of improving the economy.

All workers who are part of the CLT regime must receive the FGTS, this is part of a series of legal obligations of the employer. The amount always depends on the person's salary, because there is a government determination that stipulates a payment percentage. Another point that deserves to be highlighted on this subject is that the amount is paid by the company and not by the employee. Next, learn more about this benefit.

How the guarantee fund came about

Most of the labor rights that people know today emerged a few decades ago. Such as, for example, the work card, known as CTPS and unemployment insurance. All of these benefits serve to protect and support workers. After all, if there is unfair dismissal, that person needs to survive until they get a new job.

The Service Time Guarantee Fund, or simply FGTS, emerged in the mid-1960s. The president at the time was Castello Branco and the creation of this right had several economic objectives behind it. Workers' financial security is very important, as it prevents them from needing even more government social benefits.

Another interesting fact about the origin of the FGTS is that this benefit arrived to give way to what people considered “ten-year stability” at the time. Well, until then there was a law that guaranteed stability for people who had worked for more than 10 years in the same company. And this made dismissals much easier without workers leaving without any support.

In the beginning, people could choose whether they preferred stability or receiving the FGTS, but today that option no longer exists. Furthermore, the FGTS is the largest fund in Latin America, in 2016 the total balance exceeded R$ 490 billion. The mandatory contribution is 8%, and since its creation there have been no adjustments. Finally, in the event of unfair dismissal, the company must also pay a fine of 40% on the amount available in the account.

FGTS – To finance your own home

Over time, the guarantee fund underwent some changes, and the main one was the possibility of anticipating receipt. But it is necessary to understand that the worker cannot withdraw the resource at any time and the anticipation has rules. One of the most interesting ways to anticipate the FGTS withdrawal is when financing your own home.

In practice, workers can repay their financing with part of the balance in the account. This way the value of the installments may decrease, and consequently your total debt on the property. It is also very common to use the amount in the guarantee fund account as a down payment on the property. But, to use this resource with your own home, there are some rules.

The first rule that workers need to understand is that using the FGTS is about the value. After all, when buying a property you need at least 3 years of work record. Furthermore, it is only possible to purchase properties using the benefit that cost up to R$ 1.5 million. Not to mention that if he has another housing loan, it is also not possible to use the resource.

Ideally, the worker should confirm all this information and check the value of their FGTS before requesting its use. After requesting the amount, Caixa has a period of a few days to approve it or not. Finally, it is also not possible to invest FGTS in commercial or rural properties, nor to renovate or expand the property you already own.

FGTS – Other forms of anticipation

Millions of workers advance their FGTS for some reason, whether to buy a product, or during times of financial difficulty. Today there are some ways to access the FGTS without having to be fired from your job. One of these ways is through the Birthday Withdrawal, or when the government releases the withdrawal through some MP.

Workers who receive the Birthday Withdrawal can access part of the value of their guarantee fund always in the month of their birthday. Some experts suggest being careful before requesting this option, as it reduces the value of your support in the event of dismissal.  

Some important tips

• Before requesting the FGTS to finance the property, check the documentation;
• See the value and rules for use;
• Choose the property carefully, as it is long-term financing;
• If you have any questions, contact a Caixa branch or download the app;

Final considerations

To find out more access the session benefits. The dream of owning your own home can come closer with the possibility of using the guarantee fund for financing. In addition to serving as a contribution to the value of the property, every two years the worker can also reduce the value of the installments. This way, he ends up paying less interest and paying off the debt more quickly.