FGTS social contribution finally extinct
The provisions established by Provisional Measure no 889/2019 were upheld by the Law No. 13,932, on 12 December 2019, and Employers′ obligation to collect 10 percent of the total employees’ amounts of the month-to-month deposits made by the Employer in their pre-severance (FGTS) was finally extinguished. By January 2020, this provision will enter into force.
In 2001, the Federal Government created such contribution to secure funding for the payment of monetary restatement of the related accounts of the FGTS, in view of judicial decisions on Economic Plans ("Plano Verão / Plano Collor") to recover deficient inflation adjustments in savings accounts and judicial deposits, resulting without loss of funds.
Some employers have already challenged the unconstitutionality of this social contribution on the grounds that the Federal Government has misused its intent over the years, and the Federal Supreme Court will rule on a case of general repercussion involving all employers′ complaints concerning the right to reimbursement of sums collected over the past few years.
