State-Backed FGTS

Freeing Companies Without Abandoning Workers

We begin this text with a very concrete Brazilian tension.

On one side, private companies say that hiring is expensive, risky, and bureaucratic. They think twice before formalizing workers. They reduce teams. They outsource. They avoid growing. They remain trapped in charges, provisions, fines, liabilities, and labor-related fear.

On the other side, the worker remains insecure. They know that dismissal can dismantle the home. They know that crisis reaches the body before it reaches the spreadsheet. They know that losing a job means looking at rent, groceries, electricity, children, transportation, medicine, and the future with less ground.

The constitutional question is simple:

why must protecting the worker mean blocking the company?

We can create another path.

The State-Backed FGTS is born from this shift. The worker’s transition protection stops being a direct charge on the company and becomes sovereignty of the Body-Territory, funded by the State through public digital infrastructure, with DREX Citizen, a Public Labor Account, and traceability.

The company becomes freer to hire, formalize, pay better, innovate, and compete. The worker remains protected when facing dismissal, crisis, illness, life transition, or productive change. The State assumes its function as common ground.

Today, FGTS works as a mandatory savings account in the worker’s name, formed by monthly deposits from the employer. This logic had historical importance. But the New World question is different: if the Brazilian State can already operate public digital infrastructure at scale, if Pix has shown national informational capacity, and if Drex can open a layer of public digital currency, why must the worker’s transition protection continue to weigh directly on each employment contract?

The worker needs protection.

The company needs productive freedom.

Brazil needs international competitiveness.

These three things can walk together.

The State-Backed FGTS would be a public transition fund of the Body-Territory, financed by constitutional mechanisms, public budget, sovereign public credit, strategic revenues, territorial carbon, vital productivity, and, when possible, retail CBDC. Instead of each company carrying the monthly guarantee deposit alone, the State would guarantee basic universal protection linked to the CPF, labor history, and the Public Citizen Account.

This does not mean abandoning corporate responsibilities. It means reorganizing responsibilities.

The company would remain responsible for fair wages, a healthy environment, labor rights, safety, training, respect, productive contribution, and repair when harm occurs. But the basic transition of life — losing a job, changing cycles, facing the crisis between jobs — would be sustained by the State as part of national sovereignty.

In simple language:

the company produces value;
the State guarantees the transition;
the worker crosses change without falling into abandonment.

This change can increase the international strength of Brazilian products.

The world is entering a new phase of competitiveness. Producing cheaply is no longer enough. Each product begins to carry an invisible story: energy used, carbon emissions, traceability, quality of work, social stability, water use, technology, logistics, territorial care, and institutional trust.

The Brazilian product can carry a powerful advantage.

Brazil has one of the most renewable electricity matrices in the world. This means that steel, aluminum, processed foods, pulp and paper, data centers, digital services, green hydrogen, strategic mining, bioproducts, bioeconomy, and advanced manufacturing can gain international value when produced with clean energy, traceability, and vital productivity.

But this advantage can be lost if the country remains trapped in productivity of excess.

Productivity of excess means producing by compressing the body, exhausting the worker, informalizing labor relations, destroying biomes, burning lifetime, and exporting cheap value. It may generate volume, but it impoverishes the Body-Territory.

Vital productivity is different.

It produces with clean energy, technology, healthy work, human time, legal security, traceability, innovation, technical training, living territory, and more service added to each product.

A Brazilian product can reach the world saying:

I was produced with clean energy;
I was produced with protected labor;
I was produced with lower carbon;
I was produced with traceability;
I was produced in a territory that protects water, soil, and biome;
I was produced by companies free to innovate;
I was produced by workers protected by the State in their life transitions.

This is added value.

This is service incorporated into the product.

This is New World competitiveness.

The first constitutional proposal would be to create the State Fund for Body-Territory Transition.

Article 7-B — The State shall establish the State Fund for Body-Territory Transition, intended to protect Brazilian workers in cases of dismissal, economic crisis, labor transition, professional requalification, illness, family care, maternity, automation, technological change, or temporary loss of income.

In simple language: the worker would have public ground during life changes.

The second proposal would be to progressively replace employer-based FGTS deposits with direct public guarantee.

Article 7-C — The law may progressively and responsibly replace mandatory employer FGTS deposits with a State-backed public guarantee linked to the worker, financed by a sovereign fund, public budget, strategic revenues, public digital credit, territorial carbon, and vital productivity mechanisms, preserving the worker’s right to protection in cases of labor transition.

In simple language: the company stops carrying part of the lock; the worker remains protected.

The third proposal would be to create the Public Labor Account.

Article 7-D — Each Brazilian worker shall have the right to a Public Labor Account, linked to the CPF, the Public Citizen Account, and the national labor system, intended for receiving transition protection, tracking employment ties, professional training, requalification, insurance, labor rights, labor history, and access to information in simple language.

In simple language: the worker would see their working life as sovereignty, not as a bureaucratic maze.

The fourth proposal would be to link business freedom to real productive return.

Article 170-C — Companies benefiting from tax relief, replacement of charges, public credit, tax incentives, or reduction of indirect labor obligations shall demonstrate return in formalization, wage increases, innovation, technical training, workplace health, vital productivity, exports with higher added value, and benefit to the impacted Body-Territory.

In simple language: freeing the company must generate real value for the worker, the territory, and Brazil.

The fifth proposal would be to create the Brazilian Product of Vital Productivity Seal.

Article 219-D — The State shall foster public certification for Brazilian Products of Vital Productivity, recognizing goods and services produced with clean energy, protected labor, traceability, lower carbon intensity, innovation, territorial security, environmental care, and technological aggregation.

In simple language: the Brazilian product can compete in the world by carrying clean energy, dignified work, and living territory as part of its value.

The sixth proposal would be to protect workers in sectors affected by automation and green transition.

Article 7-E — The State Fund for Body-Territory Transition may finance professional requalification, labor mobility, technical training, temporary income, psychological support, family care, and productive replacement in strategic sectors such as clean energy, green industry, bioeconomy, technology, health, education, sanitation, infrastructure, and local economy.

In simple language: when the world changes, the worker changes with ground.

Now we feel the translational Jiwasa.

Protecting the worker does not need to mean blocking the company.

We can create a model in which the State guarantees the transition of life and the company focuses on producing real value. The company stops treating the worker as a labor risk. The worker stops feeling the company as a permanent threat. The State stops watching insecurity as if it were a private problem.

This proposal changes the emotional climate of the economy.

The company can hire with more courage.
The worker can cross transitions with more dignity.
Brazil can export products with more added value.
The territory can gain clean energy, training, technology, and healthy work.
The Constitution can transform social protection into competitiveness.

The State-Backed FGTS also speaks to the idea of public service.

Public servants have historically had a logic of stability to guarantee institutional continuity. Private-sector workers also need a minimum stability of life, even when changing jobs. It does not need to be job stability. It can be stability in the Body-Territory.

The job changes.
The company changes.
Technology changes.
The market changes.
But the body continues to need home, food, energy, care, time, and belonging.

The State-Backed FGTS protects this continuity.

It does not freeze the economy.
It gives ground for the economy to move.

The difference is enormous.

In the old economy, protecting the worker was seen as a cost against the company.
In the Body-Territory Constitution, protecting the worker becomes infrastructure for the company to grow better.

A company with fewer locks can invest more in wages, technology, design, logistics, internationalization, clean energy, training, safety, and innovation. A worker with more transition protection can face change with less fear. A State with more public data can identify sectors in crisis, regions in transformation, vulnerable workers, and requalification opportunities.

This is economic intelligence.

This is Jiwasa.

It is not each one against the other.
It is us organizing the productive metabolism.

Brazil does not need to compete based on excess, precariousness, and destruction. It can compete based on clean energy, protected work, living biomes, traceability, technology, added service, and territorial sovereignty.

The Brazilian product of the New World does not need to be only merchandise.

It can be a message.

Soy with traceability and protected soil.
Steel with clean energy.
Food with lower carbon.
A data center powered by a renewable matrix.
An industrial part with Brazilian innovation.
A digital service with data sovereignty.
A bioeconomy that keeps the forest standing.
A company that hires because the State guarantees the worker’s transition.

This is the proposal.

State-Backed FGTS to free companies without abandoning workers.

The State holds the bridge.
The company crosses with innovation.
The worker crosses with dignity.
The territory crosses with belonging.

When social protection stops being a lock and becomes infrastructure, Brazil gains a new form of competitiveness.

Competitiveness with public soul.
Competitiveness with Body-Territory.
Competitiveness with clean energy.
Competitiveness without excess.
Competitiveness with Jiwasa.

References and Foundations for Further Development

Caixa Econômica Federal and Ministry of Labor and Employment — current FGTS rules, including the monthly employer deposit.

Energy Research Office — Brazilian Energy Balance and the high share of renewables in Brazil’s electricity matrix.

World Bank — Brazilian opportunities for productivity and competitiveness based on the clean energy matrix and green industrialization.

Central Bank of Brazil — Pix as public digital payment infrastructure; Drex as public digital currency under development.

International Monetary Fund — retail CBDC, financial inclusion, payment efficiency, and institutional design.

Bank for International Settlements — retail CBDC as central bank digital money for use by the general public.

International Labour Organization — social protection, labor transitions, formalization, and decent work.

Amartya Sen and Martha Nussbaum — freedom as the real capability to be and to do.

Elinor Ostrom — governance of commons, cooperation, and local institutions.

Antonio Damasio — body, homeostasis, feeling, decision, and continuity of life.