Credit of JAM: find out what it is and who is entitled to it!

JAM Credit is a term that may sound unfamiliar to many people, but understanding it is crucial for those who want to better understand FGTS returns.

Therefore, in this article we will show the meaning of JAM Credit, as well as its relationship with the FGTS, in addition to showing who is entitled and how to withdraw this credit.

Read this article to learn everything you need to know about JAM credit.

You will read in this article:

• What is JAM Credit?
• What about the FGTS? What is it?
• What is the relationship between Jam credit and FGTS?
• How is JAM credit calculated?
• How do I withdraw JAM credit? Is it possible?
• How do I check my JAM credit?
• Who is entitled to this credit?

What is JAM Credit?

JAM Credit is an acronym for “Interest and Monetary Update.” This credit is a significant component in the context of the Severance Indemnity Fund (FGTS) in Brazil.

In general terms, JAM Credit represents the sum of interest and monetary corrections that are applied to the amount deposited in the FGTS.

In the FGTS scenario, the JAM Credit is used to indicate the income generated in the fund, acting as a mechanism that contributes to the gradual increase of the total amount over time.

These returns are calculated based on relevant economic indexes, such as the Reference Rate (TR) and other factors that influence inflation.

What about the FGTS? What is it?

The FGTS, or Severance Indemnity Fund, is a social and labor benefit available to workers in Brazil.

Established as a legal right, the FGTS functions as a form of compulsory savings, where the employer is required to deposit a percentage of the employee's salary into a linked account in their name each month.

The law stipulates that the deposit corresponds to 8% of the employee's gross salary. These funds deposited in the FGTS are intended to form a fund that can be used by the employee in specific situations throughout their professional life.

In other words, it is a fund for when a person becomes unemployed or that can be used in certain situations, such as purchasing a property or in the event of a serious illness.

What is the relationship between Jam credit and FGTS?

The relationship between JAM Credit (Interest and Monetary Update) and FGTS (Service Time Guarantee Fund) is fundamental to understanding how the gradual increase in FGTS income occurs over time.

The JAM Credit acts as a mechanism that adds interest and monetary corrections to the amount deposited in the FGTS. This credit is calculated based on important economic indexes, such as the Reference Rate (TR) and other factors that influence inflation.

During the period in which the worker maintains funds deposited in the FGTS, the JAM Credit is invested, generating income that contributes to the fund's appreciation. This income is essential for the FGTS not only to maintain its real value in the face of inflation but also to demonstrate real growth over the years.

In practical terms, the relationship between JAM Credit and the FGTS means that the money deposited by the employer into the employee's account doesn't remain static. Rather, it accrues interest and monetary adjustments over time, boosting the accumulation of funds.

How is JAM credit calculated?

The calculation of JAM Credit (Interest and Monetary Update) is carried out based on some specific elements, mainly using the Reference Rate (TR) and the JAM index table.

See the factors involved in this calculation:

• Reference Rate (TR): The TR is an interest rate table used by the government to align with another key economic index: inflation. The TR was created during the implementation of the Real Plan to curb extreme inflationary increases. It plays a crucial role in calculating JAM Credit, as its values are used to adjust monetary corrections in line with inflation increases over a given period.
• Reference Rate Adjustments: The TR is used to adjust FGTS values according to inflation. These adjustments are essential to ensure that the fund does not lose its purchasing power over time.
• JAM Index Table: In addition to the TR, the JAM index table plays a crucial role in calculating the JAM Credit. This table is updated monthly and has different percentages that vary depending on the employee's tenure at the same company. These percentages indicate the interest rates applied to the FGTS balance, contributing to increased earnings.
• Length of Stay at the Company: The JAM index table has different interest rates for different lengths of time an employee stays at the same company. Generally, rates vary for those who stay for two years, from the third to fifth year, from the sixth to tenth year, and for those who stay for more than ten years at the same company.
• Monthly Calculation: The JAM Credit is calculated monthly based on the application of the TR and interest rates from the JAM index table to the FGTS balance. These monthly calculations contribute to the gradual increase in the fund's earnings.

How do I withdraw JAM credit? Is it possible?

Direct withdrawal of JAM Credit (Interest and Monetary Update) is not an option available to workers.

The JAM Credit is applied directly to the balance of the Severance Indemnity Fund (FGTS), contributing to the increase in the fund's earnings over time. Therefore, JAM Credit amounts are not withdrawn separately.

However, the income generated by JAM Credit is incorporated into the total FGTS balance. Workers can withdraw the accumulated FGTS funds in specific situations, such as:

• Dismissal without just cause: If the employee is dismissed without just cause, he or she has the right to withdraw the total FGTS balance, including the JAM Credit income.
• Retirement: Upon retirement, the worker can withdraw the FGTS, including the income generated by the JAM Credit.
• Buying your own home: FGTS resources, which include JAM Credit income, can be used to pay or settle housing finance.
• Serious illnesses: In cases of serious illness of the worker or their dependents, it is possible to request early withdrawal of the FGTS, also covering income from JAM Credit.
• Anniversary withdrawal: Workers who opt for the anniversary withdrawal option have the option to withdraw a portion of their FGTS annually, which includes JAM Credit income.

Therefore, although it is not possible to directly withdraw the JAM Credit, the income generated by this credit is accessible through FGTS withdrawals in the situations mentioned above, providing the worker with the benefit of the income accumulated over time.

How do I check my JAM credit?

Checking your JAM Credit (Interest and Monetary Adjustment) in the Severance Indemnity Fund (FGTS) is quick and easy. To check your JAM Credit earnings, follow the steps below:

• Access the official Caixa Econômica Federal website here.
• In the menu, click on “FGTS Login”.
• Enter your access data, which usually include your NIS (Social Identification Number) or PIS/PASEP, and your registered password.
• After logging in, choose the “FGTS Statement” option.
• The statement will display detailed information about the total FGTS balance, including JAM Credit income.
• Look for specific information related to income and credits, which may include JAM Credit. These details are typically available in fields like "Income" or "Credits."
• The consultation can be carried out considering different periods, allowing the worker to view the evolution of income over time.

In addition, Caixa Econômica Federal also provides applications, such as “FGTS” and “Caixa Trabalhador”, which allow users to check FGTS balances and earnings, including JAM credits, conveniently via mobile devices.

Remembering that regular consultations of the FGTS statement are recommended practices so that workers are aware of their accumulated income and can plan the appropriate use of available resources.

Who is entitled to this credit?

JAM Credit (Interest and Monetary Adjustment) is associated with the Severance Indemnity Fund (FGTS) and is therefore intended for workers who are eligible for FGTS. Several formal professional profiles in Brazil are eligible for this benefit, including:

• CLT (Consolidation of Labor Laws) employees;
• Professional Athletes;
• Temporary Rural Workers;
• Domestic Employees;
• Casual, Intermittent, Rural and Temporary Workers.

It is important to emphasize that the right to FGTS is not limited to the situation of unfair dismissal, but also covers other events such as retirement, anniversary withdrawal, purchase of a home, among others, as mentioned previously.

Therefore, those who fall into the above categories can benefit from JAM Credit as part of the income accumulated in their FGTS balances.

Did you enjoy learning about JAM credit and how it works within the FGTS? Access the Caixa system and check your benefit yield. And take the opportunity to browse the website for more financial tips.