The FGTS celebrates six decades of existence, solidified as a pillar of the Brazilian economy, but faces the challenge of employer default that already totals R$79 billion.
As it marks 60 years of history, the Severance Indemnity Fund (FGTS) reinforces its importance as the main support mechanism for formally employed workers. Over the past three decades, the fund has injected an impressive R$3.88 trillion into the national economy, serving as a fundamental financial support for millions of Brazilians during critical professional transitions or long-term plans.
The reach of the measure is vast. Since 1997, Caixa Econômica Federal has processed nearly 2 billion withdrawals. The largest portion, about 59%, served to ensure income during periods of involuntary unemployment. Additionally, the fund has enabled the dream of homeownership for many Brazilians, accounting for 14.3% of the resources, while 11.8% were allocated to pension benefits. Including previous years under the administration of the former BNH, it is estimated that an additional R$1 trillion circulated in the market between 1967 and 1996.
Challenges and the Impact of Default on Accounts
Despite its social relevance, the institution’s anniversary highlights a worrying scenario of negligence by many employers. The volume of unmade deposits—the so-called “billion-dollar default”—has reached R$79 billion. This billion-dollar sum consists of both active debts under the control of the PGFN and outstanding issues identified by Caixa itself.
The situation directly affects approximately 50 million workers who are often unaware of irregularities in their balances. The severity is accentuated by a 26% increase in reported default in just the last eleven months, signaling a growing difficulty for companies to honor their labor obligations.
Technology as an Ally for Workers
To mitigate losses and ensure that citizens have visibility into their assets, the Severance Indemnity Fund Institute (IFGT), in partnership with the company FGND, has made a technological solution available. This is an automated audit platform.
Industry experts highlight:
The tool simplifies workers’ access to their rights, allowing them to identify failures in transfers simply by submitting the digital statement obtained directly from the official financial institution’s app.
The future of social security protection and labor rights will largely depend on oversight capacity and transparency in managing these assets. While technology facilitates the tracking of omissions, the expectation is that the government will intensify its fight against default, ensuring the sustainability and integrity of a fund that has supported the financial stability of Brazilian families for six decades.
