Brazil’s government has issued an executive order relaxing FGTS severance fund rules, allowing 12 million workers to withdraw up to 12 billion reais ($2.04 billion). Workers dismissed since January 2020 can now access their remaining funds despite prior annual withdrawals. The disbursements will commence in March, reflecting a commitment to support individuals amid economic challenges.
Brazil’s government has taken significant steps to ease access to the workers’ severance fund, known as the FGTS, through a new executive order. This adjustment, announced on Friday, allows approximately 12 million workers to access an estimated 12 billion reais (approximately $2.04 billion). Previously, workers who withdrew from their FGTS during their birthday month were restricted from accessing their remaining balance upon dismissal, only regaining full rights after a 24-month period.
The recent change enables individuals who were dismissed between January 2020 and the present to withdraw their entire FGTS balance, regardless of past withdrawals for their birthday. This initiative aims to alleviate financial strain for many workers and stimulate the economy. The government has indicated that the disbursements will commence in March, marking a significant shift in policy that could benefit many individuals in need.
This measure reflects President Luiz Inacio Lula da Silva’s administration’s commitment to enhancing financial accessibility for formal workers, particularly amidst ongoing economic challenges. The decision to revise the withdrawal rules is expected to provide immediate relief to families facing economic hardships. It represents a crucial move in ensuring that workers can access their rightful funds in times of need.
In conclusion, Brazil’s executive order offers crucial relief to formal workers by enabling them to access their severance fund once again. By allowing access to previously inaccessible funds for those dismissed since January 2020, the government aims to address financial difficulties faced by millions. This policy change is poised to stimulate economic recovery by facilitating increased liquidity for workers.
Original Source: money.usnews.com
