INSS (National Social Security Institute) retirees may have a 6.70% readjustment in retirement and other benefits, according to the inflation forecast measured by the INPC (National Consumer Price Index) for this year, which is included in the PLDO ( Budget Guidelines Bill) of 2023.
The bill with guidelines for the 2023 Budget was sent to Congress by the government this Thursday (14) and provides for a minimum wage of R$1,294 for next year.
The minimum, which is also the floor for Social Security benefits, would only include inflation plus rounding. This year, the national floor is R$ 1,212.
The inflation projected by the government is used not only to correct the minimum wage and other Social Security benefits, but also serves as a basis for calculating the Executive’s expenditures for the next year.
In the bill sent to Congress, the Executive also projects minimum wages for the years 2024 and 2025, based on inflation projections. According to calculations, the floor will be BRL 1,337 in 2024 and BRL 1,378 in 2025.
See when you can raise your pension in 2023 (in BRL)
|Benefit amount in 2022||Projected value for 2023|
Final percentage only comes out in January
The inflation indices used are forecasts only. The final adjustment of the INSS benefits only comes out in January 2023, when the IBGE (Brazilian Institute of Geography and Statistics) publishes the inflation for the year. So far, the IPCA (Broad Consumer Price Index) accumulated from 12 months to March is at 11.30%.
The percentage is the highest for the country’s official inflation since March 1994, before the Real Plan (implemented in July), when the indicator reached 42.75%. The index, which is usually very close to the INPC, used to readjust salaries, reached 1.62% in March this year.
This year, the inflation target is 3.50%, with the possibility of reaching 5%. Analysts, however, see a larger increase in the IPCA, of 7% until December. If the estimates are confirmed, 2022 will be the second consecutive year of non-compliance with the target. In 2021, the IPCA rose 10.06%.
Retirement readjustment was 10.16% this year
While the IPCA closed the year 2021 at 10.06%, the INPC reached 10.16% last year, a percentage used in the adjustment of pensions and other INSS benefits this year. The readjustment, however, depends on when the insured retired.
The 10.16% was applied to those who already had a benefit on January 1, 2021. Those who started receiving payments from February last year received a proportional increase, according to the values below. Check out:
- Until January 2021: 10.16%
- Start of benefit in February 2021: 9.86%
- Start of benefit in March 2021: 8.97%
- Start of benefit in April 2021: 8.04%
- Start of benefit in May 2021: 7.63%
- Start of benefit in June 2021: 6.61%
- Start of benefit in July 2021: 5.97%
- Start of benefit in August 2021: 4.90%
- Start of benefit in September 2021: 3.99%
- Start of benefit in October 2021: 2.75%
- Start of benefit in November 2021: 1.58%
- Start of benefit in December 2021: 0.73%
Increase in the minimum wage is by decree and defines other payments
The readjustment of the minimum wage occurs by means of a presidential decree that, in general, is signed at the end of each year. Since the beginning of the Bolsonaro government, the minimum has only been adjusted for inflation. In the years of government of Lula, Dilma and Temer, the national floor had a greater increase, which took into account the inflation of the previous year plus the GDP (Gross Domestic Product) of two years before.
In the government of Michel Temer (PMDB), although the policy of real appreciation of the minimum wage was still valid, inflation was reset for two years, since there was no growth in GDP. In one of the years, Temer even applied a lower readjustment to the minimum, because the inflation forecast used to sign the decree was lower than the index released later by the IBGE (Brazilian Institute of Geography and Statistics).
The increase in the minimum wage impacts other payments made by the government and other bodies. When the floor goes up, there is an adjustment in the total paid in lower value social security actions, called RPVs (Small Value Requisitions), in the PIS/Pasep allowance and in social security contributions, among other expenses.