The Brazilian government will release approximately R$4.5 billion [1] from the Severance Indemnity Fund (FGTS) to help workers pay off debts.
This initiative aims to lower high levels of national indebtedness by providing immediate liquidity to workers who are struggling with financial obligations. The move integrates into the latest phase of the government's Desenrola 2.0 program, focusing on debt relief for lower-income citizens.
Luiz Marinho, Minister of Labor and Employment (PT), said the government intends to liberate the funds specifically for this purpose. "We must release about R$4.5 billion from the FGTS so that workers can pay off their debts," Marinho said [1].
Under the new rules, eligible workers can access up to 20% [2] of their available FGTS balance. The government has set a maximum limit of R$8 billion [4] for the total amount of resources that can be withdrawn for this specific purpose. To qualify, beneficiaries must earn up to five minimum wages, which is approximately R$8,000 per month [1].
Marinho said the funds will not be delivered as general cash withdrawals. "The resources will have a specific destination and will be used exclusively for the payment of debts," Marinho said [3]. This "earmarking" ensures that the funds are used to reduce liabilities rather than for general consumption.
While some reports suggest that users must have a balance sufficient to clear their entire debt to qualify, primary government sources indicate that any worker meeting the income criteria can utilize up to 20% of their balance [2].
Marinho said it will be possible to use up to 20% of the available FGTS balance to pay debts [2]. The program is designed to provide a pathway for workers to regain financial stability without depleting their entire safety net.
“"We must release about R$4.5 billion from the FGTS so that workers can pay off their debts."”
By allowing the use of the FGTS, a fund typically reserved for unemployment or home purchases, the Brazilian government is prioritizing immediate debt reduction over long-term savings. This strategy reflects an effort to stimulate the economy by cleaning up worker balance sheets, though it reduces the future financial cushion available to laborers during unemployment.
