Caixa begins distributing almost R$13 billion in FGTS profits

Workers with accounts in the Severance Indemnity Fund (FGTS) began receiving a distribution of nearly R$13 billion of the fund's profits in 2024, Caixa Econômica Federal announced tonight. Traditionally held in August, the distribution has been brought forward to the end of this month.

The funds will be deposited over the next few days. The reference amount corresponds to the balance in each account on December 31, 2024. Those with more than one account will receive the credit in all of them, respecting the proportional balance.

According to Caixa, the advance was possible because the FGTS Board of Trustees published this Friday the 25th the resolution approving the fund's balance sheet in 2024.

On Thursday the 24th, the FGTS Board of Trustees approved the distribution of R$12.929 billion, equivalent to 95% of the fund's profits last year. The amount will be divided proportionally among shareholders. The higher the balance in the FGTS account, the more the worker will receive.

To determine the share of profits that will be deposited, the worker must multiply the balance of each account in their name on December 31 of last year by 0.02042919. This factor means that, in practice, for every R$1,000 in balance, the shareholder will receive R$20.43. Those who had R$2,000 will receive a credit of R$40.86, with the amount rising to R$102.15 for those who had R$5,000 at the end of 2024.

Performance

The percentage of profits to be passed on to workers was set Thursday by the Board of Trustees and is equivalent to 95% of the R$13.61 billion profit earned by the FGTS last year. The profit distribution will increase the FGTS's yield this year to 6.05%, higher than the official inflation rate of 4.83%, as measured by the Broad National Consumer Price Index (IPCA) in 2024.

Even though it outperformed inflation, the FGTS (Severance Indemnity Fund) yielded less than the savings account. Last year, savings accounts yielded 6.41%, influenced by the Selic rate (the economy's base interest rate). When the base interest rate is above 8.5% per year, savings accounts yield 0.5% per month (6.17% per year) plus the Reference Rate (TR).

By law, the FGTS yields 3% per year plus the TR. However, profit distribution—in place since 2017—improves the fund's performance. The credit—traditional income plus profit distribution—is incorporated into the account balance.

In 2024, the Supreme Federal Court (STF) ruled that the fund must be adjusted at least by the IPCA. However, the adjustment is not retroactive to the account balance and only applies after the publication of the ruling.

If the result of the distribution of profit per worker and the income of 3% per year plus the TR is lower than inflation, the Board of Trustees is obliged to define a form of compensation so that the correction reaches the IPCA.