Caixa bank initiates payment of retained FGTS balances for millions under new provisional measure

Caixa Economica Federal has commenced the disbursement of Worker’s Severance Indemnity Fund (FGTS) amounts previously held for a specific group of Brazilian workers. The payments began on Monday, December 29, 2025, marking a significant financial relief for millions across the nation.

These funds were retained from employees who opted for the birthday withdrawal option and subsequently faced job termination or contract suspension between January 1, 2020, and December 23, 2025. The measure aims to address a long-standing issue for workers who, despite job loss, could not access their full FGTS balance due to their previous choice.

The release of these critical resources was formally authorized by Provisional Measure (MP) 1.331/2025, officially published by the federal government on Tuesday, December 23, 2025. This legislative action paves the way for a substantial economic injection into the hands of affected individuals.

Provisional measure’s broad impact

The provisional measure is set to unlock approximately R$ 7.8 billion (Brazilian reals) in funds, directly benefiting an estimated 14.1 million workers throughout Brazil. This extensive release is designed to provide financial support to those impacted by job market changes over the past few years, particularly those who were restricted from full severance withdrawals. The government’s decision reflects an effort to mitigate the financial consequences for a significant portion of the workforce, ensuring greater access to their rightful savings under specific circumstances.

Payment schedule and access methods

The distribution of these funds is organized into two distinct stages to manage the large volume of beneficiaries efficiently. The initial phase began on December 29, 2025, allowing for the release of up to R$ 1,800 per linked account, contingent on the available balance. This first stage is projected to disburse roughly R$ 3.9 billion.

The subsequent phase will cover the remaining balances, also estimated at R$ 3.9 billion, with payments commencing on February 2, 2026. This second stage will be staggered, continuing until February 12, 2026, ensuring a systematic and organized release of funds to all eligible individuals. The staggered approach is crucial for preventing system overload and ensuring smooth transactions for all beneficiaries.

Automatic credit and alternative withdrawal options

A key feature of this payment process is its automated nature, designed to simplify access for workers. The funds will be credited automatically to beneficiaries’ bank accounts, eliminating the need for any formal request or application. This streamlined approach prioritizes direct deposit for speed and convenience.

Priority for these automatic credits will be given to bank accounts already registered within the FGTS mobile application. Caixa reports that approximately 87% of eligible workers have an account linked to the app by December 18, meaning a vast majority will receive their money directly in their preferred bank.

For those without a registered bank account in the FGTS app, alternative physical withdrawal methods are available. These include lottery houses, Caixa ATMs, and Caixa Aqui correspondents. Individuals can access their funds using their Citizen Card and password, or via biometrics or password at Caixa terminals, ensuring broad accessibility across various channels. The availability of funds will persist as long as the provisional measure remains in effect, providing a flexible window for withdrawals.

Specific conditions for eligibility

Eligibility for this exceptional FGTS release is tied to several precise criteria. Workers must have initially opted for the birthday withdrawal option. Additionally, their employment contract must have been suspended or terminated between January 1, 2020, and December 23, 2025. A crucial condition also requires the worker to possess an existing balance in their FGTS account pertaining to the affected contract.

The authorization for this withdrawal extends to various types of contract rescissions. These encompass dismissals without just cause, cases of indirect dismissal, mutual fault, or force majeure. Other covered scenarios include employer bankruptcy or death, the conclusion of fixed-term contracts (including temporary positions), and the total suspension of casual work. Notably, for rescissions resolved through an agreement between the employee and employer, workers are entitled to withdraw 80% of their available balance, reflecting a comprehensive coverage of diverse employment cessation circumstances.

Exceptions to withdrawal eligibility

Despite the broad scope of the new measure, certain situations will prevent the release of funds. Workers who have used their FGTS balance as collateral for anticipation loans of the birthday withdrawal will find those specific amounts unavailable. These funds are legally bound to cover the outstanding loan obligations, ensuring financial stability for the lending institutions involved.

Furthermore, accounts subject to judicial blocking, such as those related to child support payments, will also be excluded from this special release. In these instances, the balance remains inaccessible, adhering to legal mandates that prioritize court-ordered allocations. Such judicial interventions ensure that funds are directed according to legal obligations rather than being subject to discretionary withdrawals.

Consulting your balance and entitlement

Workers eager to verify their eligibility and check their available funds can do so through several convenient channels. The FGTS application provides a straightforward option via the “Useful Information” section, offering detailed account summaries. Additionally, assistance is available by calling the toll-free number 0800-726-0207, where agents can provide guidance under the FGTS option.

For those preferring in-person inquiries, any Caixa Economica Federal branch can provide comprehensive information regarding eligibility and balance details. To ascertain the exact amount due, individuals can consult their statement directly within the FGTS app, where credits related to this measure will be clearly identified with the descriptions “SAQUE DEP 50S” or “SAQUE DEP 50A.”

Understanding the birthday withdrawal option

Introduced in 2020, the birthday withdrawal option allows workers to annually withdraw a portion of their FGTS balance, along with an additional amount, during their birth month. This alternative withdrawal method was designed to provide workers with more immediate access to their funds for various personal financial needs.

However, a key trade-off of this option is that in cases of dismissal without just cause, workers are typically unable to withdraw their entire FGTS balance, only the severance fine. This specific rule created the problem that Provisional Measure 1.331/2025 now addresses, allowing for this exceptional release to bridge the gap for affected individuals who previously faced limitations. Workers can revert to the traditional severance withdrawal option, but this change only takes effect 25 months after the request, highlighting the long-term commitment required for such a switch.