The formal worker is entitled to a series of benefits. FGTS birthday withdrawal and unemployment insurance are two good examples that are often claimed. But the question remains, does one income impede the other?

While the birthday withdrawal allows the worker to annually withdraw a portion of the balance deposited in the Severance Indemnity Fund (FGTS) account, unemployment insurance only releases amounts in the case of unfair dismissal.

Answering the main question, anyone who opts for the FGTS birthday withdrawal will not lose their unemployment insurance. They are different policies. The confusion arises because anyone who chooses to withdraw on birthdays loses the right to withdraw the full FGTS when dismissed without just cause.

This only happens because this person will continue to receive the amounts deposited in the FGTS by their former employer, normally in the month of their birthday, whether they have a new job or not.

Birthday withdrawal x unemployment insurance

What is the FGTS birthday withdrawal?

The FGTS Birthday Withdrawal is a modality that allows Brazilian workers to withdraw part of the balance available in their FGTS account each year, in the month of their birthday, according to the calendar established by Caixa Econômica Federal (CEF).

The amount to be withdrawn varies according to the balance available in the account according to the table that determines the percentage to be withdrawn. It is worth noting that this modality is optional, and that in compliance with it, the employee loses the right to full dismissal in the case of dismissal without just cause, maintaining the right to a termination fine of 40% of the balance.

What is unemployment insurance?

Unemployment insurance is a benefit provided by the government to provide financial assistance to workers who have been fired without cause. It is a form of social protection that aims to guarantee a minimum income for workers who have lost their jobs and are looking for a new position in the labor market.

The benefit is paid over a certain period of time, which varies from three to five installments, depending on the employee's working hours and the number of times they have requested unemployment insurance in the past.

To be entitled to unemployment insurance, the worker must meet certain requirements, such as having been fired without just cause, having worked for a minimum period of time and being enrolled in the PIS/PASEP program for at least five years.

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