Government releases withdrawals of up to R$ 1,045 from FGTS and extinguishes PIS / PASEP fund

The Government announced, through Provisional Measure 946/2020, published on 4/7/2020, the release of R $ 1,045.00 for withdrawals from FGTS (Service Time Guarantee Fund) accounts as of June.

Said measure aims at the injection of liquidity in the economy, as another way of helping to face the state of public calamity resulting from the coronavirus pandemic.

Holders of accounts linked to the FGTS system will be able to withdraw funds from June 15 to December 31, 2020 up to the limit of R $ 1,045.00 per worker.

The MP also establishes an order for those who have more than one linked FGTS account:

I. Linked accounts related to terminated employment contracts, starting with the account with the lowest balance;

II. Other linked accounts, starting with the account with the lowest balance.

Withdrawals will be made according to the service schedule, criteria and form established by Caixa Econômica Federal. Automatic credit to the employee’s savings deposit account, previously opened at Caixa, will be allowed, as long as the employee does not manifest himself negatively, or credit to a bank account of any financial institution, indicated by the employee, provided that it is his / her own. ownership.

In addition, MP 946 extinguishes the PIS-Pasep Fund, established by a complementary law in 1975, and transfers its assets to the FGTS. According to the text, the accumulated equity in the individual accounts of the participants of the PIS-Pasep Fund will be preserved and will be remunerated according to the same criteria applicable to the linked FGTS accounts, and can be freely moved at any time.

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