INSS ceiling may reach R$ 7,077 in 2022; see value of pensions

With the high inflation in the country, the readjustment of pensions and other INSS (National Social Security Institute) benefits should also rise. The government’s new forecast for the INPC (National Consumer Price Index) is for a 10% increase in 2021.

With this, the INSS ceiling, which is the maximum amount paid to policyholders, currently at R$6,433.57, would reach R$7,076.93. The minimum wage, which is the base of the institute’s benefits, is at R$1,100 and would go to R$1,210, as stated in the revision of the Ploa (Project for Annual Budget Law) of 2022, sent to Congress last Thursday (9).

The inflation estimate is used by Planalto to plan expenditures for 2022 and is based on the upward movement in prices in the country during the year. From January to November 2021, the INPC, used to readjust wages and pensions, is at 9.36%. The final increase in benefits, however, will only be known on January 11, when the IBGE (Brazilian Institute of Geography and Statistics) will release the official inflation for the year.

In addition to influencing Social Security benefits, annual inflation is also the basis for the payment of other expenses, such as the PIS/Pasep salary bonus, unemployment insurance and assistance benefits such as BPC (Continued Cash Benefit), paid by the INSS to seniors over 65 and disabled people in vulnerable situations.

Check how much INSS benefits can go in 2022:

According to economist André Braz, coordinator of the IPC (Consumer Price Index), FGV Ibre (Brazilian Institute of Economics, Fundação Getulio Vargas), inflation measured by the INPC may fluctuate a little higher, beyond what the government is currently doing. anticipating but nothing much bigger.

“INPC may be slightly above the IPCA. We estimate that the IPCA will reach 10.2% and the INPC may stretch a little, up to 10.4%, 10.5%. This is because some pressure sources are highlighted in the budget of the less favored, which is very much the public of INPC. For example, the meat that went up a lot and the effects of energy, which also went up a lot, hit hard on these budgets”, he says.

The benefit with readjustment starts to be paid on January 25th, according to the calendar published by the INSS. Whoever earns a minimum wage gets paid first, between January 25th and February 7th. Those who have a higher benefit amount will have the payment readjusted between February 1st and 7th, according to the final number of the card, without the check digit.

In the budget review sent to Congress, the government says that more money is needed to cover expenses, since inflation, which was 6.2% in August, jumped to 10% in September this year, which “directly impacts the legal and constitutional correction of expenses with social security benefits under the General Regime (RGPS), unemployment insurance, salary bonuses, Continuous Provision Benefits under the Organic Law of Social Assistance and Life Monthly Income”.

The increase in INSS pensions that are higher than the minimum wage is usually adjusted for inflation. In the case of the minimum wage and the social security floor, there was the valuation policy, with real adjustment, which began during the Lula administration and which was in force during the Dilma and Temer administrations.

The correction considered the previous year’s inflation plus the GDP (Gross Domestic Product) growth of two years before. When GDP was zero, the readjustment was just that of inflation. The rule was modified in the Bolsonaro government and both the minimum wage and other benefits now only receive correction by the INPC.

In Bolsonaro’s administration, not only was there a disengagement from GDP, but the government has already given a readjustment lower than inflation to the minimum, as was applied this year, when the INPC closed 2020 at 5.45% , and the minimum rose 5.26%.​