Brazilian workers earning up to five minimum wages may withdraw up to 20% [1] of their FGTS balance to pay off debts.
This policy shift aims to provide immediate financial relief to low-income citizens struggling with outstanding liabilities. By allowing access to the Guaranteed Fund for Length of Service (FGTS), the government seeks to reduce the overall financial pressure on the workforce.
Finance Minister Dario Durigan said the measure was announced in April 2026 [1]. The announcement came less than one month [2] after Durigan took office. The details were shared during an interview published by Folha de S.Paulo.
To qualify for the withdrawal, workers must meet a specific income threshold. Eligibility is limited to those earning up to five minimum wages, which corresponds to R$ 8,105 [1]. This targeting ensures that the funds are directed toward those most likely to experience severe financial distress.
The FGTS is a mandatory fund that employers deposit for workers, typically reserved for dismissal without cause, retirement, or home purchases. Allowing a 20% [1] withdrawal for debt settlement represents a departure from the fund's traditional restrictive nature.
Durigan said the goal is to help low-income workers settle their debts. The move is intended to stabilize the personal finances of the eligible population without implementing a broad-scale tax cut, or direct subsidy program.
“Workers earning up to five minimum wages can withdraw up to 20% of their FGTS balance to pay debts.”
The decision to unlock FGTS funds for debt repayment suggests a priority on immediate household liquidity over long-term severance savings. By targeting workers earning R$ 8,105 or less, the Brazilian government is utilizing existing labor reserves to mitigate the impact of high consumer debt without increasing the national deficit through new spending.
