Government restricts FGTS birthday bonus advance withdrawals

agenciabrasil.ebc.com.br (Portuguese)

New rules will restrict advance withdrawals of FGTS birthday bonuses starting November 1st. The government aims to prevent worker exploitation through high-interest loans. The changes limit loan amounts to R$500 per installment, with a maximum of five installments annually. Borrowing frequency will be reduced to one operation per year, and a 90-day waiting period after opting in will be enforced. These measures are intended to protect workers from excessive debt and ensure FGTS funds remain available for housing and infrastructure, rather than benefiting financial institutions.


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