employment
Brazil’s FGTS: What UK-Based Workers Should Know
How the 8% monthly FGTS deposit works, when you can withdraw, and how the 40% termination fine interacts with UK tax residency questions.
Brazil’s FGTS: What UK-Based Workers Should Know
What FGTS is
The Fundo de Garantia do Tempo de Serviço is a mandatory severance fund. Your employer deposits 8% of your gross monthly salary (2% for apprentices) into a linked account at Caixa Econômica Federal.
The balance is yours, but withdrawal rules are strict — unlike a UK pension, you cannot usually access it every month.
When withdrawals are allowed
Common cases include dismissal without cause (with possible 40% employer fine on the balance), retirement, serious illness, home purchase (special programme) and other statutory situations. Always confirm with Caixa and your union.
Link to our calculadora
Use the FGTS calculadora page to model cumulative deposits — the article text is written for Brazilian readers in Portuguese below.
FAQ
Is FGTS taxable in the UK?
References
- FGTS — Caixa·Caixa
- Ministry of Labour (BR)·GOV.BR
- Banco Central do Brasil·BCB