What is fgfgts?

FGTS is collected by an account opened in the Brazilian Bank Caixa Econômica Federal, also known as CEF, in the name of each worker. The sum of all these accounts is comprised in a single account used by the government to finance sewage services and infrastructure works.

What is the difference between FGTS and WGS?

FGTS means the employee severance fund, so called, in Portuguese, “Fundo de Garantia do Tempo de Servico,” managed by the Brazilian government – owned federal bank Caixa Economica Federal. WGS means the Whole Game System and the procedures for the operation thereof as determined by The FA from time to time.

What is FGTS in Brazil?

Introduction to FGTS In Brazil there is a special fund designated for workers called FGTS. It is a benefit that creats resources for the government and an assistance fund for workers exposure to some specific situations. In this article you will find out what FGTS is, who is benefited by it and how it is funded.

How is the account balance of FGTS formed?

The account balance of FGTS is formed by monthly deposits made by the employer equivalent to 8% of the employee’s salary. The deposits are mandatory and must enter into each worker’s account by the 7th day of the month.