Senate approves authorization for consigned in Auxílio Brasil

The Senate approved this Thursday (7th) a provisional measure that authorizes the granting of payroll-deductible loans to beneficiaries of the Auxílio Brasil social program — a substitute for Bolsa Família.

Payroll loans can be granted up to a limit of 40% of the benefit amount. The text also releases this credit for those who receive the Continued Benefit and increases the margin of payroll-deductible credits for retirees and pensioners.

The provisional measure was symbolically approved by the senators. As it had been approved by the Chamber of Deputies, it now goes to the sanction of President Jair Bolsonaro (PL).

The text approved by the senators says that beneficiaries of federal income transfer programs will be able to authorize the Union to make discounts on benefits in favor of banks for loan repayment, with a limit of 40%.

The 40% limit provided for beneficiaries of income transfer programs will also be applied to CLT employees and civil and military civil servants, active and inactive. It will only be necessary to allocate 5% exclusively for the amortization of credit card expenses or for withdrawals through a payroll-deductible benefit card.

This maximum percentage, according to the provisional measure, cannot be subject to any limitation of use by number of contracts.

The text provides for the refund of amounts unduly credited to someone already deceased, as well as discounts after the death of the beneficiary as a result of a payroll loan or payroll credit card. The rule does not apply to financial amounts received by the family related to the benefits of the Auxílio Brasil Program.

The discount may also apply to severance pay due by the employer, if this is provided for in the loan or credit card agreement.

The provisional measure also provides that the Union cannot be held liable, even on a subsidiary basis, for default by the beneficiary.

The text of the provisional measure also increases to 45% the payroll-deductible credit margin of retirees and pensioners of the general social security system. Of this total, 35% must be loans, 5% to pay expenses incurred with a payroll-deductible credit card or withdrawal, and another 5% for expenses with a payroll-deductible benefit card or payroll-deductible benefit card.

This margin will also be applied to beneficiaries of the BPC (Benefício de Prestação Continuada) — which is paid to needy elderly people and people with disabilities who prove that they are in a vulnerable situation.

This maximum percentage, according to the provisional measure, cannot be subject to any limitation of use by number of contracts.

At the time of drafting the provisional measure, the government estimated that the change in the rules of payroll loans could irrigate Auxílio Brasil families with up to R$ 30 billion in financing. In the case of the BPC public, the potential is estimated at R$ 19 billion.

The provisional measure was edited and approved at a time when the Bolsonaro government is working on measures to relieve voters’ pockets at a time when high inflation hits Brazilians. The president seeks re-election in October.