Brazil Expands FGTS Withdrawal Rules for Anniversary-Modality Workers

New Provisional Measure Signed

President Luiz Inácio Lula da Silva of Brazil signed a new Provisional Measure (MP) on December 23, 2025, expanding the rules for the withdrawal of funds from the Fundo de Garantia do Tempo de Serviço (FGTS). The measure, identified as MP nº 1.331/2025, allows workers who previously opted for the 'saque-aniversário' (anniversary-withdrawal) modality to access their full FGTS balance if their employment contract was terminated or suspended between January 1, 2020, and December 23, 2025.

This initiative is set to benefit an estimated 14.1 million workers across Brazil, with a total of approximately R$ 7.8 billion expected to be released into the economy.

Addressing Previous Restrictions

Under the previous regulations for the anniversary-withdrawal modality, workers who chose this option and were subsequently dismissed without just cause were restricted from withdrawing their entire FGTS balance. Instead, they were only permitted to access the 40% severance fine, with the remaining balance only becoming available through subsequent annual anniversary withdrawals. The government stated that this previous rule 'fragilizes the function original of the fund as instrument of social protection in moments of economic vulnerability'. The Minister of Labor and Employment, Luiz Marinho, described the new measure as correcting an 'injustice' for workers who were unable to access their funds after dismissal.

Payment Schedule and Access

The payment process will be managed automatically by Caixa Econômica Federal, the official agent for FGTS operations. The release of funds will occur in two stages:

• A first installment of up to R$ 1,800 will be made available by December 30, 2025, limited to the balance available in the worker's linked account.
• The remaining balance for eligible workers will be paid by February 12, 2026.

Most beneficiaries, approximately 87%, will receive the funds directly into their bank accounts registered with the FGTS application. Workers without a registered bank account will be able to withdraw their funds at Caixa branches, lottery houses, or Caixa Aqui points, following a calendar to be announced.

Important Considerations

The Provisional Measure introduces specific conditions and limitations:

• The measure is temporary and applies only to contracts terminated or suspended within the specified period (January 1, 2020, to December 23, 2025).
• Workers whose FGTS balance has been used as collateral for loans, such as through the 'antecipação do saque-aniversário' (anticipation of anniversary withdrawal), will not be able to access the pledged amount, as these guarantees remain valid.
• The new rules do not alter the conditions for workers who voluntarily resigned from their positions.
• Workers dismissed after the publication date of the MP (December 23, 2025) will continue to be subject to the previous rules if they opted for the anniversary-withdrawal modality.

The FGTS, established in 1966, serves as a crucial social safety net for Brazilian workers, with employers depositing 8% of an employee's salary into a linked account each month. The anniversary-withdrawal modality, introduced by Law 13.932/19, allows for annual partial withdrawals but restricts full access upon dismissal. This new MP aims to mitigate some of the financial difficulties faced by workers under these specific circumstances.