Funding Your IVF with Your FGTS

Employees in Brazil often look beyond salary when comparing job offers. Under Brazil’s CLT rules, employers must provide a package of benefits, including paid vacation, a 13th salary, and transportation vouchers. Another mandatory benefit is FGTS.

FGTS stands for Fundo de Garantia do Tempo de Serviço. Think of it as a mandatory fund tied to each employment relationship. Every month, the employer deposits a percentage of the employee’s salary into an FGTS account linked to that job. The money is held at Caixa Econômica Federal (a Brazilian bank) and is meant to serve as a safety net for the employee.

However, FGTS isn’t a savings account you can tap whenever you want. Federal law limits withdrawals to specific situations, such as termination without cause, retirement, and the purchase of a home. If your reason for needing the cash doesn’t fit the government’s pre-approved withdrawal grounds, Caixa will almost certainly deny the request.

One expense that generally doesn’t qualify is in vitro fertilization (IVF). But recently, a federal judge ordered Caixa to release FGTS funds so a worker could pay for IVF treatment. While fertility treatment isn’t a standard basis for FGTS withdrawal, the judge reasoned that health and family planning considerations support a broader interpretation of the law’s withdrawal rules. 

This doesn’t mean every worker can now use their FGTS for fertility treatments, but it does suggest a meaningful shift in how courts may evaluate these cases. In the right case, a court order can accomplish what a bank counter will not.