Complete Guide to FGTS Calculation and Withdrawal

The Service Time Guarantee Fund (FGTS) is a mandatory savings fund created by the government to protect workers dismissed without just cause. Every month, the company deposits 8% of your gross salary into an account linked to Caixa Econômica Federal.

The great frustration of Brazilian workers is knowing that this money is there, being eroded by inflation, and not being able to touch it whenever they want. In this guide, we explain how to calculate how much you have, how much you are earning, and how to get the money out of there.

How much does FGTS yield?

By law, money held in the FGTS account yields a fixed rate of 3% per year + Reference Rate (TR). Recently, the courts have discussed changing this index, but historically the FGTS yields less than a savings account, drastically losing purchasing power in the face of real inflation.

Therefore, using FGTS money to reduce financing or investing in Fixed Income products is usually mathematically the best decision.

When can I withdraw?

There are strict modalities for accessing the money:

1. Dismissal without Just Cause: Allows full withdrawal from the account, plus a 40% fine (paid by the company on the entire amount deposited during the contract).
2. Housing Financing: You can use the balance to make a down payment on your first property financed by SFH, or every 2 years to repay installments of your current financing.
3. Birthday Withdrawal: Allows you to withdraw annually, in the month of your birthday, a percentage of the fund (which varies from 5% to 50% depending on the balance). The disadvantage: if you are fired without just cause while opting for this option, you will only withdraw the 40% fine, not the account balance.
4. Retirement and Serious Illnesses: Full release.
5. Inactivity: Inactive accounts (no deposits) for 3 uninterrupted years.

Use the Tool to your Advantage

To find out if HR is correctly depositing your fund, or to simulate how much of a 40% fine you would receive tomorrow, use our FGTS Calculator. Simply enter your salary and seniority to get an exact estimate of the blocked balance.