The Federal Supreme Court (STF) concluded the judgment of Extraordinary Appeal RE 878313, in August, which sought the elimination of the 10% social contribution levied on the balance of the worker’s account in the Severance Indemnity Fund (FGTS) in the case of dismissal of employees without just cause.
As a result, following the victory achieved by the Office of the Attorney-General of the National Treasury (PGFN) in the judgment, the STF established the following thesis concerning Topic 846 of general repercussion: “The social contribution provided for in article 1 of Supplementary Law No. 110, of June 29, 2001, is constitutional, in view of the persistence of the purpose for which it was instituted.”
According to information from Caixa Econômica Federal (Caixa), the collection of this additional 10% contribution reached the amount of R$ 36.6 billion over a period of almost eight years (2012 until July 2020). These amounts, returned to the FGTS, assisted the Fund in enabling social programs and strategic infrastructure actions.
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