07/16/2024 – 6:00
The Board of Trustees of the FGTS (Service Time Guarantee Fund) meets this Tuesday, the 16th, with the agenda, among other topics, approving the Fund’s accounts for the year 2023, for subsequent presentation to the Federal Court of Auditors (TCU).
The board members will then decide what percentage of the profits recorded by the FGTS will be distributed among the workers. There is no date set yet for the board to define this percentage, but according to the law, the amounts must be distributed by August 31.
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In 2023, the Council decided to distribute 99% of the profit, an amount of R$12.7 billion, to workers who had accounts linked to the FGTS (active or inactive). There were 217.6 million accounts eligible to receive the amount last year.
Mario Avelino, president of the Workers’ Guarantee Fund Institute (IFGT), points out that the law that created the distribution of FGTS profits requires a minimum of 50% of the profit distribution percentage. According to Avelino, the percentage to be decided by the board this year should be between 99% and 100%.
The FGTS Board of Trustees meetings are broadcast live on Youtube channel of the Ministry of Labor and Employment (Labor and Employment) and in the FGTS website.
See the values distributed in recent years
- 2023: R$ 12.7 billion
- 2022: R$ 13.2 billion
- 2021: R$8.12 billion
- 2020: R$ 7.5 billion
STF decision on FGTS profitability
In June, the STF (Supreme Federal Court) ruled that the FGTS balance must be adjusted by the Broad National Consumer Price Index (IPCA), an index used to measure the country’s official inflation. In other words, the return on the balance must be at least the percentage of inflation recorded by the IPCA.
The decision has no retroactive effect, therefore, it does not affect the balance deposited, only the corrections from the effective date of the law. In 2023, the IPCA recorded was 4.62%.
In practice, the Supreme Court’s decision ensures that the balance follows inflation, without the worker losing purchasing power on this account.
If we consider the years 2020, 2021 and 2022, for example, the FGTS account balance would have yielded more for the worker in 2021 and 2022.
What money is this?
The Distribution of FGTS Results is a legal measure that aims to increase the profitability of the worker’s linked accounts, through the distribution of results from the Service Time Guarantee Fund.
Caixa Econômica Federal informs that it is up to the FGTS Board of Trustees to authorize the Distribution of FGTS Results, and for Caixa to operationalize the credit in the FGTS accounts of workers who have this right.
How much will be paid?
The amount corresponding to the distribution of results is proportional to the account balance on December 31 of the base year in question, and the credit occurs by August 31 of the following year.
This value is obtained by multiplying the balance in your account by the distribution index approved by the FGTS Board of Trustees.
In 2023, the multiplier index was 0.02461511. Therefore, an account with a balance of R$10,000 on December 31, 2022, received an amount of R$246.15 (10 x 0.02461511) in August 2023.
How to check your balance
The FGTS account balance can be checked:
- through the FGTS application
- through the Caixa website for those who have an account at the bank
What is FGTS?
The FGTS – Fundo de Garantia do Tempo de Serviço (Employment Severance Fund) was created in 1966 and came into effect in January 1967. The idea was to create a type of security “savings” for workers, whether in the event of unfair dismissal, to guarantee resources in the event of unemployment, retirement or to be used by dependents in the event of death. It can also be used in the event of housing financing or serious illness.
In the case of dismissal without just cause, the employee receives the FGTS balance plus a 40% fine on the amount.
The total amount of the Fund is also a source of resources for the financing of housing, basic sanitation and urban infrastructure programs.
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