Government will eliminate vacation pay, 13th-month salary, and FGTS (Brazilian severance fund) for young workers.

247 The Jair Bolsonaro government intends to eliminate some of the most important labor rights, directly affecting young workers. The government will eliminate the right to vacation, the 13th-month salary, and the FGTS (a type of severance fund) for young people entering the job market. Paulo Guedes and his team's idea is to use the labor reform approved during the Temer administration as a legal basis for suppressing these rights. Since these rights are considered fundamental clauses, they cannot be eliminated overnight. The Bolsonaro government intends for companies to force young workers to opt out, giving up all these rights and thus remaining outside the scope of the Consolidation of Labor Laws (CLT).

With young workers excluded from the CLT (Brazilian labor law), the far-right government intends to dismantle the Labor Courts as well. Without the protection of the CLT, young people will be forced to resort to the ordinary courts. According to a government member interviewed by [the media outlet]. journalists Geralda Doca and Pedro Paulo PereiraIn the newspaper O Globo, it was stated that "Labor Courts would tend to become obsolete over time."

Bolsonaro supporters are inspired by what was done when the FGTS (Severance Indemnity Fund) was implemented in 1966, during the military dictatorship. Workers gave up job security, which was the norm at the time, in exchange for the Fund – they suffered enormous pressure in companies to "opt in". Later, the FGTS became mandatory and job security was abolished, existing only in the public sector. 

The new proposal will be included in the supplementary bill that the Executive Branch will send to the National Congress, which will define the details of the Social Security capitalization regime. This model involves workers opening an individual account and saving money to contribute to their own retirement – ​​meaning that the idea of ​​solidarity that structures the current Social Security system, where the current generation of workers contributes so that retirees receive benefits, will cease to exist.

According to the draft of the pension reform, the capitalization system will be mandatory, and workers will be required to transfer their resources to banks or financial conglomerates. This will be the largest income transfer in the country's history—from the public sector to the banks.