O FGTS 2023 is a Brazilian government program that guarantees labor rights to Brazilian workers.
The objective is to ensure that the employer, that is, the boss, has to pay the equivalent of 8% of monthly wages to the employee's FGTS account, destined to protect the labor rights of workers with a formal contract in Brazil.
The Fundo de Garantia do Tempo de Serviço (FGTS) is a Brazilian benefit created in 1966 to ensure that workers comply with their labor rights.
As part of this benefit, each month, workers with a formal contract can collect a remuneration corresponding to 8% from the wages received.
What is the FGTS
In the year 2023, the FGTS completes 57 years of existence and promises to offer Brazilian workers various labor rights, giving them access to social security and labor rights.
In addition, all workers with a formal contract are entitled to FGTS, which means that the amount of 8% from their wages is deposited in their FGTS account. In this way, Brazilian workers have the guarantee that their labor rights are always safe.
How will FGTS 2023 work
The Severance Indemnity Fund (FGTS) is one of the most important methods for protecting the rights of Brazilian workers.
The FGTS was created in 1967, with the aim of guaranteeing Brazilian workers a guarantee of remuneration in the event of job loss without just cause or retirement.
The FGTS is fed with installments deducted monthly from the salary, that is, the discount is applied to each payroll.
In the case of FGTS 2023, the legislation provides that the accounts will be opened from January 1 of the same year, regardless of the beginning of the worker's workday.
This means that every worker who is active on that date will be entitled to open a FGTS 2023 account.
The monthly contribution to the fund will be equivalent to 8% of the worker's salary, as it has been since July 2020.
It is worth noting that FGTS accounts are, as a rule, valid for 8 years, in accordance with current legislation. After that, the amount contained in these accounts is transferred to new FGTS accounts, with automatic opening.
In addition, in FGTS 2023, the so-called “annual allowance” or “13th FGTS” will also be granted annually.
This is an extra amount that must be paid to workers and is equivalent to one month of payroll plus an addition of 40%.
From the FGTS Digital Account, this allowance will be automatically credited to the worker's payment account.
Who will be entitled to FGTS in 2023
All workers with a formal contract on January 1, 2023 will be entitled to contributions to the FGTS, in accordance with current legislation.
The monthly contribution to the FGTS is the percentage of 8% of the gross salary received by the worker, and the employer is obliged to transfer the amount due to the Fund by the seventh working day of each month.
In January 2023, the employer must deposit into the FGTS account the amount corresponding to the contributions deducted from workers' salaries in the previous month, that is, December 2022.
Some workers are also entitled to withdraw the FGTS, using the anniversary withdrawal. In this case, the withdrawal corresponds to the total of 8% of December 2022 gross salary, which was deposited in January 2023.
Thus, all workers with a formal contract on January 1, 2023 will be entitled to FGTS.
Conclusion
The Fundo de Garantia do Tempo de Serviço (FGTS) is a Brazilian social security program, administered by the federal government, which aims to protect the rights of formal salaried workers.
Through the FGTS, companies obliged to contribute are required to collect 8% from their employee's net salary, which is allocated to a specific fund.
This fund is formed from the social values that cover specific situations, and that can be employment, stability, health or retirement.
In addition, the FGTS also offers benefits to the worker, such as the birthday withdrawal and the employee withdrawal.
The anniversary withdrawal entitles the worker to withdraw all deposits made during the year within the FGTS that has just completed one year of existence, while the employee withdrawal gives the worker the right to withdraw all deposits made during his contract period.
Other benefits that the FGTS offers include the possibility of salary advances for emergency bills, housing subsidy for workers and some other concessions for those who accumulate more than 520 days of work.
In short, the FGTS is an important protection mechanism for formal workers, guaranteeing them job security and stability, in addition to other benefits.
