Wage Guarantee Fund (FOGASA): Who Qualifies and What You Get
Learn how the Wage Guarantee Fund protects workers by paying unpaid wages if their employer goes bankrupt.
The Wage Guarantee Fund (FOGASA) is a safety net designed to ensure workers receive their unpaid earnings if their employer becomes insolvent or goes bankrupt.
Who it's for
This scheme is for employees who work under a contract. It is not intended for freelancers or self-employed individuals, though it is relevant for business owners to know about if they hire staff.
What you get
If your employer is unable to pay you due to bankruptcy or insolvency, this fund provides payment for your unpaid wages.
What it costs you
There is no cost to the employee to access this protection. The scheme only becomes a factor for individuals who are employers and hire other people.
The catch to know
This fund is strictly for employees. It does not cover the business owner or anyone working as a freelancer.
How to apply
- Confirm that your employer has officially entered a state of insolvency or bankruptcy.
- Gather your employment contracts and records of unpaid wages.
- Submit a formal claim to the relevant government body.
- Follow the specific instructions provided by the authorities regarding the required documentation for your claim.