FGTS: The Complete Guide to Understanding, Checking and Withdrawing Your Balance

The FGTS (Severance Indemnity Fund) is one of the most important rights of anyone working under a formal contract in Brazil — and also one of the most misunderstood. Many people don’t know how much they have accumulated, mix up the withdrawal rules, or leave money sitting in accounts from old jobs. This guide brings together, clearly and without fluff, everything you need to know: what the Fund is, how to track your balance, the differences between the birthday withdrawal and the severance withdrawal, and in which situations the law allows you to take the money out.

What the FGTS is

The FGTS was created to protect workers in times of hardship, especially in cases of dismissal without cause. It works like this: every month, the employer deposits into a linked account at Caixa Econômica Federal the equivalent of 8% of the employee’s gross salary (2% in the case of apprentice contracts). This amount does not come out of the salary — it is an employer obligation, money that is kept in the worker’s name.

Each formal job generates its own linked account. Over a working life, it is common to accumulate several accounts — some active (from the current job) and others inactive (from previous jobs). The deposits earn adjustments plus a share of the Fund’s annual results, which makes the balance grow over time.

How to check your FGTS balance

The most practical way to track the Fund is through the FGTS app, official and free, available for Android and iPhone. There you can see the balance of all accounts (active and inactive), the month-by-month deposit history, the date and amount of each credit, and you can even choose your withdrawal option. To access it, just register with your CPF and create a password.

Besides the app, you can check on the Caixa website and receive SMS alerts when new deposits arrive, as long as you register your mobile number. It is worth checking the balance periodically to make sure your employer is making the deposits correctly — failure to deposit is an irregularity and can be pursued.

Birthday withdrawal vs. severance withdrawal: the choice that changes everything

This is the point that raises the most questions. Workers must choose one of the two options, and the decision has important consequences:

• Severance withdrawal (the default option): you do not touch the balance while employed, but if you are dismissed without cause, you withdraw the full amount in the account at once, plus the 40% penalty paid by the employer. This is the Fund’s classic protection.
• Birthday withdrawal: every year, in your birthday month, you can withdraw part of the balance (a percentage bracket plus a fixed installment — the larger the balance, the smaller the percentage). In exchange, you give up the full withdrawal in case of dismissal — if you are let go, you receive only the 40% penalty, and the rest of the balance stays locked.

In other words: the birthday withdrawal frees up yearly cash while you are employed, but weakens the safety net at dismissal time. It can be worth it for those with job stability who want liquidity; it can be bad for those at risk of losing their job who would need the full balance. Switching options is allowed, but there is a waiting period before the change takes effect — so the decision deserves careful thought.

Withdrawal at dismissal: the balance plus the 40% penalty

In a dismissal without cause, those under the severance withdrawal option are entitled to withdraw the full balance of the linked account from that job. In addition, the employer must deposit a 40% penalty on top of everything that was contributed during the contract. This extra amount is also available for withdrawal.

Keep in mind: resigning voluntarily or being dismissed with cause, as a rule, does not release an immediate withdrawal on those grounds — the money stays in the account until another legally allowed withdrawal situation arises.

Old accounts and forgotten balances

Anyone who has worked in several places probably has inactive accounts with money sitting idle. These amounts do not disappear — they remain in the worker’s name, with adjustments. The problem is that many people don’t even remember they exist. The FGTS app shows all accounts at once, including old ones, making it easy to discover forgotten balances and, when the law allows, withdraw them. If you have changed jobs several times, it is worth checking — there may be a meaningful amount accumulated.

Other cases where the law allows withdrawal

Beyond dismissal, the FGTS can be withdrawn in specific situations provided for by law. Among the main ones:

• Buying your own home: for a down payment, amortizing or paying off a housing loan within the Housing Finance System, provided the required conditions are met.
• Retirement: upon retiring, the worker can withdraw the available balance.
• Serious illnesses: in cases such as cancer, HIV and other serious conditions, affecting the worker or a dependent, upon proof.
• Age 70 or older, death of the account holder (withdrawal by dependents or heirs), and certain officially recognized public calamity situations.

Each case has its own rules and documents. Detailed, up-to-date guidance for each situation is always on the official Caixa pages — Caixa is the institution responsible for managing the Fund.

Watch out for scams: checking and withdrawing is free

The FGTS is a frequent target of fraud. Keep these simple principles in mind:

• Checking your balance and requesting a withdrawal costs nothing. Nobody needs to pay a fee, an “advance” or a “release” charge to receive their own money.
• Be suspicious of SMS, WhatsApp or email messages with links asking for bank details, passwords or photos of documents to “release your FGTS”. Use only the official app and the Caixa website.
• Do not share passwords or access codes with third parties, even if they claim to be employees.
• When in doubt, type the official address yourself or open the app — never click links received from unknown sources.

Frequently asked questions about the FGTS

Who is entitled to the FGTS? Every worker with a formal contract (CLT), plus specific categories such as rural, temporary, intermittent and domestic workers. It is a deposit made by the employer, not a salary deduction.

Does the FGTS balance earn anything? Yes. Deposits receive adjustments plus a share of results defined each year, which increases the accumulated amount over time.

Can I switch from severance withdrawal to birthday withdrawal and back later? You can change options, but there is a waiting period: the change takes time to come into effect. So weigh it carefully before switching, considering your dismissal risk and your need for liquidity.

Could money from an old job have been lost? No. The balance remains in the linked account in your name, with adjustments. Just check the FGTS app to locate inactive accounts.

Understanding the FGTS means understanding an asset that is already yours. Track the balance, choose your withdrawal option with a clear view of the consequences, and always confirm every piece of information through Caixa’s official sources.

This page is for informational purposes and gathers reference guidance about the FGTS. Rules, conditions and options may change — always confirm on the official pages of Caixa Econômica Federal. This is not an official government or Caixa website.