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[BUSINESS] · Brazil · 2 sources

Brazil's Federal Treasury Office Takes Over FGTS Debt Collection

Starting June 1, Brazil's Procuradoria‑Geral da Fazenda Nacional (PGFN) will assume exclusive management and collection of active‑status debts of the Fundo de Garantia do Tempo de Serviço (FGTS). Approximately R$ 66.8 billion linked to 500,000 registrations will be transferred from Caixa Econômica Federal to the PGFN system, with the migration expected to be completed by the end of the month.

The PGFN will handle all consultation, renegotiation and payment guide issuance through its Regularize portal, and a July edit will offer debtors discounted settlement options. Recovered amounts will be credited directly to workers' FGTS accounts. While Caixa will retain responsibility for non‑active or already‑parcelled debts and for issuing FGTS certificates, individualization of each worker’s credit will also be processed through Regularize. The agency plans to use its broader enforcement tools—such as protests, asset seizures and public‑contract bans—to improve collection efficiency, aiming to increase transparency and repayment speed for workers.

Officials say the change should simplify processes for both debtors and beneficiaries, facilitating quicker recovery of funds owed to employees.