Overview

• Brazil’s FGTS council approved new limits on advance loans tied to the Saque‑Aniversário, to take effect once Caixa updates its systems, with implementation due no later than November 1.
• Only one advance contract will be allowed per year, and workers must wait 90 days after opting into the modality before taking the first advance.
• Each annual withdrawal used in an advance will be capped between R$100 and R$500, with a transition that permits up to five parcels in the first year and up to three thereafter.
• The government projects that roughly R$84.6 billion to R$86 billion will remain in FGTS accounts through 2030; about 21.5 million workers have opted in, and advance operations have totaled R$102.9 billion since 2019.
• Officials say the changes curb what the labor minister called a credit ‘trap’ for workers and preserve funds for housing and infrastructure, while a proposal to allow up to 10% of FGTS as collateral for private payroll loans is still under review.