INSS payroll interest will rise to 2.14%

The interest on payroll-deductible loans from the INSS (National Institute of the National Institute of Social Security) will rise from January 2022. The new rate will be 2.14% for payroll-deductible loans and 3.06% for the credit card. credit. Currently, the interest is 1.80% and 2.7%, respectively.

The 18.9% rise in the loan and the 13.3% increase in the credit card rate was a request from the banks, after falling interest rates during the pandemic and a long period of “freeze”. Since March 2020, when the Covid pandemic hit the country, payroll rates have fallen and remain at the same level.

The increase in interest on this type of credit was a request from the banks. On the occasion, Febraban (Brazilian Federation of Banks) justified that the increase was necessary after an increase in the cost for institutions to raise funds for payroll-deductible loans and a drop in the granting of this type of loan.

The new interest rates were authorized by the CNPS (National Social Security Council) after a meeting this Monday morning (6). The readjustment was linked to financial education policies for INSS retirees and pensioners, which should be funded by banking institutions, but whose main points will be debated and defined by the council.

The INSS payroll is controlled by the CNPS and has its own rules. 2020 data show that, according to the INSS, there were 195.6 million active payroll deductibles in the country. This year alone, there were 37.8 million new contacts. Among the rules controlled are the maximum interest decided by the board, in addition to the amount of months to pay and the limit that can be borrowed by the retiree. By the end of 2021, this loan limit is 40% of the benefit: 35% for the loan and 5% for the credit card.

As of 2022, the rules must return to what they were before the pandemic, and the retiree or pensioner will be able to commit up to 35% of their monthly income with these debts: 30% for the loan and 5% for the payroll credit card.

Until December 2021, the maximum number of monthly installments to pay the debt continues to be increased from 72 to 84 months (from six to seven years of payment). As of 2022, it will be back to 72 months.

This year, since March, the Central Bank has raised the Selic interest rate again, which reflects on the interest charged to companies and individuals. On Wednesday (8), the forecast is for an increase of 1.5 percentage point in the Selic, causing the basic interest to go from 7.75% to 9.25%.

Febraban informed, in a note dated November 19, that funding costs are so much pressure on institutions that they can hinder the offer of credit to retirees. “Banks understand that it is important to prevent the cost of funding and expenses from making it impossible to grant benefits to a significant portion of these retirees and pensioners, particularly in this period at the end and beginning of the year”, states the text.

“Maintaining the current payroll-deductible interest rates, given the considerable deterioration of these costs – with inflation above 10%, the current Selic level and with an upward trend, and also with the 5-year DI at almost 13% – puts pressure on the costs to offer the product strongly and directly impacts the capacity of banks to grant this important line”, says the federation.

According to research carried out by the institution, payroll is used mainly for retirees and pensioners to pay debts and essential expenses.

Based on data provided by the Central Bank, Febraban states that the granting of this type of loan dropped from R$ 9.37 billion in April to R$ 7.18 billion in October. “Without payroll-deductible credit, retirees are forced to resort to more expensive lines of credit, including the risk of looking for loan sharks,” he says.

Main uses of payroll

Febraban survey on the destination of the loan obtained by INSS retirees and pensioners (data from the first half of 2020):

• Paying debts: 65%
• Paying for medicines and/or exams: 21%
• Renovate property: 19%
• Pay day to day bills: 17%
• Buying food: 12%

Larger margin for payroll

• In March 2021, the government authorized an increase in the payroll margin to 40% for INSS beneficiaries and public servants by the end of this year
• In January 2022, the special measures applied in the INSS payroll expire and return to the old rules. See what changes in payroll in 2022
• The expansion had already been adopted in 2020 to try to reduce the economic impacts generated by the Covid-19 pandemic

Consult your statement

The insured can consult the loans linked to his/her benefit through Meu INSS

1. Access My INSS with login
2. Click on the “Loan Statement” option
3. If you receive more than one social security benefit, consult one at a time
4. The screen will show the benefit information and the consignable margin
5. If you prefer to print, click on “Download PDF”

Keep an eye

• Discounts from loans and other debts can only be made on retirement if authorized by the beneficiary
• The retired victim of financial harassment or abuse can request the refund of the discounted amounts