The Severance Pay Guarantee Fund (FGTS) is a right that anyone with a formal contract has. Therefore, the contracting party, be it the company or the employer, must deposit 8% of the worker's salary into a Fund account. Although the best-known justification for redemption is withdrawal-termination, there are a number of other possibilities.

However, a doubt that may be common to many workers is related to default: after all, whoever has a bad name retains the right to withdraw the FGTS? This is a relevant question since surveys demonstrate the fragile financial situation of millions of Brazilian families, as shown by Hibou research, in which 4 out of every 10 Brazilians would enter 2023 with debt. See more below.

Birthday withdrawal available

Before moving on to the question, it is important to highlight that the birthday withdrawal is now available for those born in March to request. This modality is an alternative to withdrawal-termination and, by adhering to it, workers can withdraw a percentage of the FGTS amount.

The amount available to withdraw is not the same for all workers, as it varies according to the amount in the FGTS account. For example, anyone with a balance of up to R$ 500 reais will be able to redeem 40% of the amount, without being entitled to an additional installment.

On the other hand, for those who have more than R$ 20,000.01, the right to redemption is 5% of the amount, plus an additional installment of R$ 2.9 thousand. It is worth remembering that the redemption is made in the worker's month of birth.

However, when joining, employees must be aware that if they are dismissed without just cause, they will not be able to redeem the full amount. Furthermore, if you regret it, you can return to withdrawal-rescission only 2 years after the date of joining.

See also: Monetary correction in the FGTS can increase the balance by up to R$ 50 THOUSAND: learn how to consult

Will anyone with a bad name be prevented from withdrawing the FGTS?

Having a bad name can bring a series of negative effects to the citizen. Therefore, many people may have doubts as to whether one of these consequences is related to social benefits. This occurs since, in 2021, there were reports that many were unable to redeem their Emergency Aid deposits for this reason.

However, after verification, the amount was made available. The reason for this is that having debts is not a justification for blocking the transfer of social benefits, and the same applies to the FGTS, as it is a right guaranteed by the formal contract.

Therefore, workers do not need to worry if they have a bad name, as this will not cause them to lose their right to withdraw FGTS. However, it is necessary to pay attention to the criteria for withdrawing, as there are a series of situations that guarantee the right to withdraw and to be able to redeem the amounts it is necessary to meet at least one of them.