STF sets date for judgment of FGTS correction

In 2014, a lawsuit was brought to the Federal Supreme Court (STF) seeking to correct the accounts of the Severance Indemnity Fund (FGTS) due to inflation, unlike what is done at the moment. The Supreme Court has set a date for the trial, which will take place on April 20. Learn more about correction of FGTS throughout the article.

The FGTS correction is not yet guaranteed

see more

Alert: THIS poisonous plant landed a young man in the hospital

Google develops AI tool to help journalists in…

The judgment of the Direct Action of Unconstitutionality 5.090/2014, which will have Minister Roberto Barroso as rapporteur, may or may not correct the values ​​of the FGTS.

The intention of the action is to correct the Referential Rate (TR) by an index based on a measurement made by the Brazilian Institute of Geography and Statistics (IBGE). Currently, the FGTS correction is carried out by this TR plus 3% per year, but the TR is very close to zero since 2017, and is currently at 0.048%.

In 2019, more specifically in September of that year, Barroso granted a provisional decision which suspended the processing of all proceedings on the issue that were in progress in the Brazil. However, the desired correction in the action may be harmful to the public accounts.

This is because, if the value is corrected based on an inflation index, such as the INPC or the IPCA, for example, it can generate a gap of billions in public accounts, and the value can reach R$ 300 billion.

What is the Severance Indemnity Fund?

The FGTS is a monthly deposit, equivalent to 8% of the worker's salary, paid directly by the employer into a Caixa Econômica Federal account. In a simplified way, it works as a savings account opened by the company on behalf of the worker, aiming to protect him in case of dismissal without just cause. In addition, there are other situations in which it is possible to have access to FGTS values, they are:

  • Amortization of debts;
  • Acquisition of own house;
  • In cases of serious illness;
  • In public calamity;
  • When three consecutive years without a job in the work portfolio;
  • Death of the holder (the heirs can withdraw);
  • In retirement;
  • Termination due to reciprocal fault or force majeure;
  • Birthday withdrawal;
  • Suspension of one-off work for more than 90 days;
  • Over 70 years of age;
  • Termination of the contract for a specified period.

Lover of movies and series and everything that involves cinema. An active curious on the networks, always connected to information about the web.

Compulsive Consumption: when the compulsion manifests itself through the act of shopping

What is Consumption?Consumption is a human activity that consists of the movement of goods and se...

read more

Argumentative textual genres. Textual genres

Expressing your opinion in order to make the "other" attribute reliability to what you are saying...

read more

Judaism. Origin of Judaism

Judaism is the oldest monotheistic religion in the world. It originated around the 18th century B...

read more