Severance Indemnity Fund for Employees
In Portuguese Severance Indemnity Fund for Employees is named Fundo de Garantia por Tempo de Serviço and often referred to by the abbreviation FGTS.
FGTS was created in order to support workers fired without just cause with the objective of forming a capital resource to the help Brazilian workers.
The account balance of FGTS is formed by monthly deposits made by the employer equivalent to 8% of the employee's salary. The contribtuions must be deposited into each worker’s fund by the 7th day of the month.