Brazil expands worker credit program with FGTS guarantees for lower‑interest loans

On June 26 2026, Brazil's Ministry of Labor and Employment issued new regulations for the Crédito do Trabalhador program, allowing workers under the CLT to use part of their FGTS balance and termination benefits as collateral for payroll‑linked loans. Up to 10% of the FGTS balance, up to 100% of the FGTS termination fine, and up to 35% of severance amounts can be pledged, with interest rates limited to 1.99% per month.

The measure aims to lower borrowing costs, increase competition among banks, and reduce default risk. Guarantees can be applied to new loans, refinancing or loan portability, but cannot be used to renegotiate existing debts. The rules are codified in Resolution CGCONSIG/MTE No. 3 and Ordinance MTE No. 1.115/2026 and will be managed through the Digital Work Card (CTPS Digital). The program already serves a R$133 billion portfolio and 10 million active borrowers.