Tax
Calculate your FGTS balance, deposits, and potential withdrawals
Project your FGTS growth and calculate withdrawal scenarios
The FGTS (Fundo de Garantia do Tempo de Serviço) is a Brazilian workers' compensation fund established in 1966 to protect employees in case of job loss. Employers are required to deposit 8% of each employee's gross salary into an FGTS account held in their name at a designated financial institution. The FGTS serves as a safety net providing workers with resources during unemployment, retirement, or other qualifying life events. The fund is entirely funded by employers and is separate from the employee's regular salary—workers do not contribute directly. Accumulated balances earn monthly interest and an annual bonus, making it a valuable long-term benefit.
Each formal employee in Brazil has a unique FGTS account where employers deposit 8% of the gross monthly salary. This contribution is mandatory and non-negotiable. The account holder can withdraw funds under specific circumstances: involuntary job termination, retirement, serious illness, home purchase, or education expenses. The balance earns an annual interest rate (usually around 3% per year) plus a yearly bonus credited in August, typically around 50% of the monthly balance. Withdrawals are made through the FGTS app or at authorized banks after meeting the required conditions.
Monthly FGTS Deposit = Gross Monthly Salary × 8%. Annual accumulation = (Monthly Deposit × 12) + Interest + Bonus. For example, a $2,000 monthly salary generates $160 in monthly FGTS deposits, totaling $1,920 annually before interest and bonuses.
The FGTS is a compulsory severance fund in Brazil where employers deposit 8% of each employee's gross salary. It exists to provide financial protection to workers in case of job loss or during qualifying life events. The fund ensures workers have emergency resources without needing personal savings.
You can withdraw FGTS funds in these situations: involuntary job termination, retirement, serious illness, home purchase, education expenses, natural disasters, or after 3 years of inactivity in the account. Each situation has specific legal requirements and documentation needs.
FGTS balances earn annual interest (typically around 3% per year) and an annual bonus (usually around 50% of the monthly balance) credited in August. The exact rates can vary based on government policy and changes to inflation indices. Interest is credited monthly based on the daily balance.
Your FGTS account remains yours and continues to grow with new employer contributions. You don't lose accumulated FGTS when changing jobs—each new employer must continue depositing 8% of your salary into the same account. The balance carries forward indefinitely unless you withdraw it.
