New FGTS rules reduce early withdrawal of the annuity by 80%, says banking association

The Brazilian Association of Banks (ABBC) released a statement on Tuesday stating that the early withdrawal of the annuity showed an 80% decrease in contracts in November, the first month under the new rules approved by the FGTS Curator Council. The monthly volume granted dropped from R$ 3 billion to approximately R$ 600 million, mainly due to the minimum requirement of R$ 100 per annual installment in advance, accounting for 90% of the observed decrease. The new rules for early withdrawal include a 90-day waiting period between joining the annuity withdrawal and contracting the advance; limiting to five years of installments until October 2026, decreasing to three years from November 2026; a minimum value of R$ 100 and a maximum of R$ 500 per annual installment; and restricting to only one operation per worker, even if there is available balance.