Is it worth cashing out the FGTS? Understand how the benefit works

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on reddit
Share on stumbleupon
Is it worth cashing out the FGTS?  Understand how the benefit works

Table of Contents

Have you ever been in a situation of doubt about whether it's worth it to cash out the FGTS or not?

Like Severance Indemnity Fund (FGTS), the worker rights under the CLT regime they are more stable, as the monthly deposit is made based on the professional's salary.

However, with the possibility of having the money for themselves, from some changes in corporate benefits, many people wonder if it is worth withdrawing the FGTS.

And that's exactly what we're going to answer throughout this article, based on the following topics covered:

  • What is the FGTS?;
  • But is it worth withdrawing the FGTS?;
  • Where to start evaluating the possibility?

Let's find out then, if it's worth cashing out the FGTS? Follow this reading with us!

What is FGTS?


Created in the year of 1966, the FGTS was an optional benefit until 1988, when it became mandatory for all workers in CLT regime.

It was created with the purpose of protecting professionals in cases of unfair dismissal, since the benefit is deposited in a Caixa Econômica Federal bank account by the employer.

The following types of professionals are entitled to the FGTS:

  • workers with a formal contract;
  • rural workers;
  • intermittent;
  • temporary;
  • loose;
  • sapphires;
  • professional athletes;
  • domestic servants;
  • non-employed directors.

See too: FGTS: definitive manual – what it means, rules and understand the statement

Let's see how the benefit works in practice before we understand if it's worth withdrawing the FGTS?

How does FGTS work?

As highlighted, the employer has the obligation to deposit a monthly amount in the Caixa bank account linked to the worker.

This value corresponds to 8% of salary of each professional and is accumulated gradually during the period in which the individual is registered in the portfolio.

Over time, this amount can earn interest that gradually improves income. But many people question whether it is worth withdrawing the FGTS just to have access to this money and use it as you prefer.

It was because of some recent changes that this question arose in people's minds. The federal government has allowed withdrawals from the FGTS since the second half of 2021 in the amount of up to BRL 500.

There is also the possibility of making annual withdrawals based on this provisional measure. The withdrawal can only be made on the worker's month of birth, being a kind of birthday bonus — and optional, not being mandatory the withdrawal of funds during this period.

It is also important to note that this “birthday withdrawal” is not restricted to the R$500 mentioned above. The amount varies according to the available balance of your FGTS, hence the importance of contacting Caixa Econômica Federal to find out how much you are entitled to.

With this, the worker is now entitled to obtain his benefit under the following circumstances:

And this can also happen according to extraordinary releases authorized by the government, as occurred with the aforementioned provisional measure.

But is it worth taking out the FGTS?

The decision, although individual, can happen so that the worker resolves any immediate pending issue or wishes to reallocate their funds in a personalized manner and according to their objectives and needs.

There are, therefore, situations that can be of great help to the worker and, then yes, it is worth withdrawing the FGTS. Some of them we'll check below!

pay off debts

Can I redeem my FGTS to pay debts? Yes.

If there are financial disputes and the monthly income does not cover these debts, it is worth withdrawing the FGTS (either the R$ 500 or the amount allowed in the withdrawal of the month of your birthday) to get rid of debts.

Thus, the benefit is used punctually to solve a problem and add more financial well-being to your life.

Investing in financial products

Who is interested in invest your money in fixed or variable income modalities, it may consider the withdrawal of the FGTS.

After all, some products have high yields and are protected by institutions, allowing you a higher yield in the medium and long term, to use the money as you prefer there in the future.

Creation of emergency financial reserve

THE emergency financial reserve it is a great alternative to avoid problems due to unforeseen events. For example: to repair the vehicle, in the face of unemployment or even to pay for treatments and medicines for diseases.

Then, it's worth withdrawing the FGTS because you can invest in modalities that allow you to quickly redeem the desired amount, in case of need.

And if you don't use the money, even better: it pays monthly according to the product you used to invest your money.

Where to start evaluating the possibility?

We recommend, now that you've read the entire article, to assess your financial situation. Start by identifying any debts and delinquent accounts to get rid of them, or maybe start designing long-term plans.

Based on this, you will better understand if it is worth taking out the FGTS or keeping it where it is at the moment.

It is important to highlight that people with little financial discipline and no real need to withdraw their FGTS can leave it there.

After all, even if it is little, the money earns monthly there and the accumulated interest will allow you not to spend something that, in the future, can be of great help.

So our answer to the question in the title of this post is: yes, it's worth it to withdraw the FGTS — as long as you have a use for that amount and it's not just to spend it without any discipline.

Salary on demand: savings for the company, well-being for the employee

The FGTS is a benefit that helps many workers in critical moments in their professional life. Therefore, instead of tampering with this reserve, other corporate benefits can help employees such as salary on demand.

Get to know the tool HR Consultant UKy and learn how the system that implements the payment on demand, that is, the employees of a company can advance part of their salaries when they need it.

This tool is changing the way employees handle their salary and generating more satisfaction and motivation at work.

HR Consultant UKy can be one of the benefits most valued by those who work in your company. Talk to an expert and learn more!

And do you know what else you can do, now that you know if it's worth cashing out the FGTS? How about sharing this post on your social networks?

This way, more people can analyze the possibility and put the plan into practice to have a healthier and less conflictual relationship with money!


HR Consultant UK can help if you have any questions about Is it worth cashing out the FGTS? Understand how the benefit works
. Our HR consultant in London can assist you if you live in London. Suppose you live further afield thats not an issue! Visit our HR Consultants Near Me page to find the best consultancy nearest to you.
See you next time!



Leave a Replay

Why HR Consultants UK!

HR Consultant UK Offers HR advice for local businesses in the UK. Our HR Consultants Near Me Page will help you get in contact with local HR Consultancy.

Alternatively, view our list of cities covered by HR experts.  Its time to get all your HR issues solved! 

Enjoy the Blog!

Recent Posts

Follow Us

Sign up for our Newsletter

Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit

Where do you need an HR Consultant?

United Kingdom or

Get local HR advice in the UK and USA?

So that we can get you through to the right HR Consultant, please let us know what your location is.

Book HR Consultants
Get Quotes From Local HR Consultants

Talk with a Local HR Consultant in the United Kingdom Or United States.