INSS begins last payment round based on minimum wage before increase.

INSS begins last round of payments based on minimum wage

The National Social Security Institute (INSS) has begun the last round of payments based on the minimum wage of R$1,302. These payments began on April 24th and will continue until May 6th for roughly 36 million retirees, pensioners, and other benefit receivers.

Starting in May, the minimum wage for social security benefits may be adjusted to R$1,320. This is because President Luiz Inácio Lula da Silva (PT) promised to increase the minimum wage by 1.38% on Labor Day, affecting all benefits based on this reference.

INSS payments cannot be lower than the national minimum wage. Meanwhile, pension benefits above the minimum wage are adjusted based on inflation measured by the National Consumer Price Index (INPC) and therefore will not be changed.

Minimum wage promise

Setting the national minimum wage at R$1,320 was a campaign promise made by Lula, which could not be fulfilled in January due to a lack of space in the federal budget. However, the president committed to making the adjustment in May, offering an increase of R$18 compared to the current value.

According to data from the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), the minimum wage is a reference for the remuneration of around 60.3 million workers and INSS beneficiaries in Brazil.

Payment dates

The calendar divides beneficiaries between those who earn the minimum wage and those who receive more significant amounts. They are ordered according to the end of their benefit number (NB), without considering the digit after the dash. See the payment dates for 2023:

May 2nd: Beneficiaries with final NB digits 1 and 6 (minimum wage)

May 3rd: Beneficiaries with final NB digits 2 and 7 (minimum wage)

May 4th: Beneficiaries with final NB digits 3 and 8 (minimum wage)

May 5th: Beneficiaries with final NB digits 4 and 9 (minimum wage)

May 6th: Beneficiaries with final NB digits 5 and 0 (minimum wage)

May 9th: Beneficiaries with final NB digits 1 and 6 (above minimum wage)

May 10th: Beneficiaries with final NB digits 2 and 7 (above minimum wage)

May 11th: Beneficiaries with final NB digits 3 and 8 (above minimum wage)

May 12th: Beneficiaries with final NB digits 4 and 9 (above minimum wage)

May 13th: Beneficiaries with final NB digits 5 and 0 (above minimum wage)

Implications for INSS Beneficiaries

For those who receive social security benefits at the minimum wage, the increase in the minimum wage means a higher amount in their next payment. The difference between the old and new minimum wage will be reflected retroactively from January to April, and the new amount will be paid in May.

For those who receive social security benefits above the minimum wage, the adjustment will be based on the inflation rate, measured by INPC, and will vary depending on the specific benefit amount.

If you have any questions about your social security payment status, you can check online or seek assistance from a social security lawyer or financial advisor.

In conclusion, the increase in the minimum wage will have a significant impact on social security benefits in Brazil, benefiting millions of retirees, pensioners, and other benefit receivers. It is a welcome sign of progress in improving the economic situation for many Brazilian citizens.