Will this be the end of the FGTS fine and unemployment insurance?

According to GAET, ending the FGTS fine and unemployment insurance is a good solution to reduce unemployment levels in the country.

Currently, there is a lot of news circulating on the internet reporting a possible end of FGTS fine and unemployment insurance.

This information has caused a lot of buzz and left workers with their hair standing on end.

After all, what's true about this information? Read the text and find out if these two really are true. worker benefits are numbered.

See the post index below:

• What is the FGTS fine?
• What is the purpose of unemployment insurance?
• After all, will this be the end of the FGTS fine and unemployment insurance?
• Where does this information come from?
• Conclusion.

What is the FGTS fine?

The FGTS fine is an amount deposited for a worker under the CLT regime who was dismissed without just cause.

The amount is calculated in 40% on the entire amount deposited by the company during the term of the employment contract.

What is the purpose of unemployment insurance?

According to the Art. 2, I of Law No. 7,998/90, in short, unemployment insurance aims to provide temporary financial assistance to unemployed workers.

To be eligible, you must have worked for at least 12 months with a formal employment contract in the last 18 months before applying for the insurance for the first time. The dismissal must have been without just cause.

The number of installments varies from 3 to 5 and depends on the number of months worked. 

What to do if unemployment insurance runs out?

Before finding out if it will be the end of the FGTS fine and unemployment insurance, there is a solution for those who want and can prepare for this event.

One of the best suggestions is create an emergency fund for this purpose. It should be composed of amounts corresponding to between 6 and 18 months of your current living expenses, considering your basic expenses.

For example, if your monthly expenses total R$1,400,000, your emergency fund should be at least R$1,400,000.

Let's say if you lost all your income today, how many months would you be able to support yourself?

From this question, the importance of having an emergency fund becomes clear. To create one, first identify how much you need in the fund.

To reach this conclusion, you need to have a monthly spending plan. After that, start saving every month.

Of course, you should start small and according to your means. However, the important thing is to start small and gradually increase your amounts.

If you earn little, for example, below the minimum wage, creating an emergency fund is almost impossible.

Invest your time in studying to get a better salary or position. Also, look for additional sources of income to help you loosen your budget and start saving.

If you have debts or restrictions on your name, try to pay them off first.

The reserve should be invested in a fixed-income, highly liquid investment, as it is ideal for medium-term goals.

Additionally, cash should always be available for you to withdraw in case of an emergency.

Among the best alternatives, we find, for example:

• Direct Treasury;
• CBD;
• LC;
• LCI/LCA.

Keep saving, little by little, until you reach your emergency fund goal. This way, you'll have a good amount to survive if you lose any income. 

It can serve as your unemployment insurance if your benefits end, but don't forget to replenish your savings as soon as you get new income.

After all, will this be the end of the FGTS fine and unemployment insurance?

For now, there is no bill and there is no discussion in front of the government parliamentarians that aims to give end to the FGTS fine and unemployment insurance.

Furthermore, the Ministry of Labor and Social Security highlighted that there is no government estimate to discuss this topic, that is, a new Labor Reform.

So far, this topic comes from a study to understand the scenario if there are certain labor changes.

Where does this information come from?

This topic is not unfounded or has started to be discussed on the main internet communication channels by chance.

The Federal Government, the same one that said there was no plan to discuss a new Pension Reform, at the initiative of Minister Paulo Guedes, created a study group.

It is composed of legal experts, economists, politicians, and academics. The group is called GAET (Group for Advanced Labor Studies).

Among the topics discussed in the group's meetings is the end of the FGTS fine and unemployment insurance.

The justification of this class is that by removing these rights from workers, employee turnover will decrease.

This will free up the organizations’ resources to invest in new hires.

The expectation is that in this way, by taking away the rights already won by workers, there will be a reduction in unemployment levels in the country.

In fact, some unions believe the opposite effect may occur. Since the company will have fewer responsibilities toward its workers, turnover and layoffs could increase significantly.

Certainly, this is the expectation of GAET's academics, jurists, politicians and economists, but it is the Brazilian worker who feels the expectation.

Conclusion

We know there is nothing official and given so much speculation, the government may indeed discuss a kind of mini labor reform at some point.

However, for now, there is nothing to be alarmed about. To remain calm, if there really is a end of the FGTS fine and unemployment insurance, the ideal is to start saving and creating your emergency fund.

This way, you will be more relaxed if you become unemployed, as you will be able to support yourself for a while and perhaps use some of the money to invest in your own business.

Not far from the topic discussed today, did you know that there is already a projection for the minimum wage in 2023, 2024 2 2025? Read the text and find out!