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Discover how to advance FGTS funds and decide how to use the money.
Brazilian employees with formal employment contracts accumulate an amount throughout their professional careers. Specifically, we are referring to the Severance Indemnity Fund (FGTS). However, certain rules determine access to these funds.
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For example, in cases of dismissal without just cause or serious health conditions, the employee is not allowed to access these resources. Even so, there are methods for advancing FGTS funds. Keep reading for more details.
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How can you advance FGTS funds and make use of the money?
As highlighted earlier, FGTS offers several withdrawal options. One notable option is the termination withdrawal, which grants workers the right to withdraw the total amount in cases of dismissal without just cause. However, if the individual wants to access FGTS and remains employed, they can opt for the birthday withdrawal.
In addition, this FGTS option makes it possible to advance the withdrawal of installments that would normally only be released on the employee’s birthday. Therefore, advancing up to 12 installments at once becomes possible.
Thus, as this transaction is equivalent to a type of loan, it is subject to interest. However, given the low risk involved, it emerges as an attractive alternative for those seeking additional funds.
How to activate the birthday withdrawal?
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To access this benefit and withdraw the funds in advance, you must first enable this withdrawal option. This is done through the FGTS app (Android, iOS). See the procedure below:
- Open the app;
- Register or log in with your credentials;
- In the app's main menu, tap “FGTS Birthday Withdrawal”;
- After reading, select “I agree to the terms and conditions” and then click “Adopt Birthday Withdrawal”.
Once this step is complete, you can request the birthday withdrawal, as the option will be active in your profile. It is worth noting that the annual amount available for withdrawal varies from 5% to 50% of the total accumulated in the worker's FGTS accounts, supplemented by an additional amount.
