Brazil’s government has relaxed FGTS withdrawal rules, potentially releasing 12 billion reais to 12 million workers. Recent changes allow dismissed workers access to their FGTS balance, regardless of prior withdrawal choices. Payments are set to begin in March 2025.

Brazil’s government has announced an executive order that temporarily relaxes the rules regarding disbursement from the Workers’ Severance Fund (FGTS). This measure is anticipated to release approximately 12 billion reais (equivalent to $2.04 billion) to around 12 million workers. Under a law initiated in 2019, formal workers were allowed to withdraw a portion of their FGTS balance during their birthday month; however, they subsequently lost the ability to withdraw their remaining balance if dismissed until a 24-month waiting period was completed.

With the new announcement from President Luiz Inacio Lula da Silva’s administration, workers who were dismissed from January 2020 up to the date of this announcement will now have access to their remaining FGTS balance, even if they previously opted for the annual withdrawal program. This significant change aims to enhance financial support for workers in need. Payments from this fund are scheduled to commence in March 2025, providing immediate relief to eligible individuals.

In summary, Brazil’s government has implemented a temporary easing of rules surrounding the Workers’ Severance Fund, significantly benefiting millions of workers. The executive order allows dismissed employees access to their full FGTS balance, regardless of previous withdrawal choices. This change reflects the administration’s commitment to supporting the financial well-being of workers, with payments beginning in March 2025.

Original Source: money.usnews.com