Many people have their FGTS (Brazilian employee severance fund) blocked, which ends up becoming a major obstacle. But few know that even with the blockage, there are alternatives to withdraw the funds; there are procedures that allow for release even in more complex cases. And since this amount will make a big difference in your budget, it's important to understand the procedure for releasing blocked FGTS funds. With this information, you can use the money available in your account even with the blockage.
How does the FGTS (Brazilian severance pay fund) freeze occur?
The FGTS (Severance Indemnity Fund) is a benefit available to all workers, and the employer is obligated to deposit it monthly into an account linked to the worker. This resource serves as a financial reserve, guaranteeing greater security for employees working under the CLT (Consolidation of Labor Laws). This balance is blocked when there is a restriction preventing the account holder from accessing or withdrawing the available funds. This situation can occur even if the worker meets the criteria for withdrawing the benefit.
The most common reasons for FGTS (Brazilian employee severance fund) being blocked are: choosing the anniversary withdrawal option instead of the termination withdrawal option, or taking out a loan using the FGTS as collateral (anticipation of the anniversary withdrawal). However, it can also occur due to registration errors or incorrect information in the system, and due to judicial blocking resulting from legal proceedings or disputes.
How to release blocked FGTS funds?
Both checking your balance and requesting to unlock your account can be done directly through the FGTS app, from Caixa Econômica Federal. The app is available for free on the Play Store (Android) and App Store (iOS) platforms.
FGTS blocked due to opting for the anniversary withdrawal
- Download and open the FGTS app on your mobile phone (Android | iOS);
- Access your account using your CPF (Brazilian tax identification number) and password;
- On the main menu, tap on “My withdrawals”;
- If you wish to revert to the termination withdrawal option, select the "Termination withdrawal option" and confirm.
According to the legislation, the change of payment method only takes effect after 24 months. In the meantime, you will continue to receive annual withdrawals in the month of your birthday.
FGTS (Brazilian employee severance fund) blocked due to a loan secured by the balance
- Open the FGTS app (Android | iOS);
- Log in to your account;
- On the home screen, tap the total balance (padlock icon);
- The statement will appear, displaying details of the available funds and the amount blocked;
- The balance is held until the loan is fully paid off; to expedite the release of funds, the remaining balance of the loan must be paid
- If you wish to pay off your debt, you can request a change from the birthday withdrawal to the termination withdrawal option.
Blocked due to incorrect information
- Open the FGTS app on your device (Android | iOS);
- Access your account normally;
- In the menu, select the “More” option;
- Next, tap on “Address and personal details”;
- Review your information and update anything that is incorrect.
Keeping your information up-to-date is essential to avoid account blocks and ensure access to your resources.
Judicial freeze
If your balance is blocked by court order, you need to go to a Caixa Econômica Federal branch to resolve the situation. Alternatively, you can contact Caixa by phone: the number for capital cities and metropolitan areas is 4004 0104, and for other locations: 0800 104 0104
How long does the FGTS (Brazilian employee severance fund) remain blocked after a loan?
When you take out a loan using your FGTS balance as collateral (advance withdrawal of your birthday withdrawal), the amount remains blocked until all installments are paid. Once the loan is paid off, the funds are released within 10 days, allowing you to regain full access to the resources in your account.
