See everything that changes with the new minimum wage of R$1,212

​The new minimum wage for 2022, which from January 1st will go from the current R$1,100 to R$1,212, will change the value and calculation of social security, social and labor benefits for millions of Brazilians. The provisional measure with the new floor was published this Friday (31).

The INSS (National Social Security Institute) will consider the new floor of R$1,212 as the minimum amount paid in retirement, death benefits and sickness benefits. The value of the BPC (Continued Cash Benefit), granted to seniors aged 65 and over and low-income people with disabilities, also rises from R$1,100 to R$1,212.

According to the INSS, of the 36 million beneficiaries of the agency, around 24 million receive the minimum wage and 12 million have benefits above the floor, that is, almost 7 out of 10 benefits are paid by the floor. The INSS begins to pay pensions with the annual adjustment on January 25th, for those who receive the minimum wage, and from February 1st onwards for higher benefits.

Higher limit for INSS fast arrears

The new national floor also changes the payment of pension revisions and other social security benefits in court. The maximum amount of arrears that are paid more quickly, in monthly batches of RPVs (Small Value Requisitions), will increase from R$66 thousand to R$72,720, that is, the equivalent to 60 minimum wages.

Reviews and granting of benefits in which the retiree is entitled to receive amounts above 60 minimum wages are paid by the Court through precatório, which is released in annual batches.

The increase in the minimum wage also changes the maximum amount of lawsuits that can be filed in Special Federal Courts, which accept applications with arrears of up to 60 minimum wages. The retiree can choose to waive part of the arrears to file the case in a court.

PIS / Pasep pass

The PIS/Pasep allowance for formal workers and public servants is another benefit that changes after the adjustment of the minimum wage. The amount paid to the professional who fits the criteria varies according to the number of months worked in the reference year. The calculation considers 1/12 of the minimum wage valid on the date of payment, multiplied by the number of months worked in the corresponding year, rounded up, according to the Ministry of Labor and Social Security.

If the beneficiary worked the whole year, he will receive a minimum wage of R$1,212. If you worked a month, you will receive BRL 101. Fractions of 15 days or more are considered as 30 days. For the PIS that will be paid in 2022, the government considers the time worked in 2020. The employee of a private company registered in the PIS for at least five years and who has worked with a formal contract for at least 30 days in 2020. The average monthly remuneration needs to be up to two minimum wages. The employer must be registered with the CNPJ (National Register of Legal Entities) and have correctly informed the employee’s data in the Rais (Annual List of Social Information).

Minimum unemployment insurance quota

In the case of unemployment insurance, the minimum amount paid to dismissed workers also follows the current minimum wage. According to the ministry, the 2022 minimum wage will take effect on unemployment insurance from January 11th. To calculate the benefit paid to the worker, the government calculates the average of the three salaries prior to dismissal and then applies a reduction, according to the salary range.

According to the ministry, from January to December 2021, 5,350,817 had access to unemployment insurance (considering partial data until December). Of this total, 594,763 workers fell within the minimum wage range.

Contributions to the INSS will have new values

Workers who pay contributions on their own to the INSS, on the base salary, will also have new payment amounts in 2022. Payments made from February, referring to January’s competence, are now calculated on the new minimum wage.

Low-income housewives contribute 5% of the minimum wage, which is R$55 in 2021. The 2022 contribution will rise to R$60.60.

Workers registered with the MEI (Individual Micro-entrepreneur) also pay R$ 55 to Social Security in 2021, but these self-employed workers still pay municipal and/or state taxes on the payment slip, depending on the type of activity.

For the trade and industry sector, there is currently a charge of R$ 1 for ICMS (Tax on Circulation of Goods and Services). For service activities, the ISS (Service Tax) is BRL 5 and those who fall into trade and services categories pay BRL 6.

The contribution of 11% of the floor of self-employed persons who provide services to individuals and optional taxpayers, which today is R$121, rises to R$133.32.

Contributions to the INSS made on the floor, but at the rate of 20%, go from R$220 to R$242.40. Social Security informed that there is no rounding for the calculation of the social security contribution and confirmed the new payment amounts on the floor of R$ 1,212.

Minimum wage per day

According to the Ministry of Economy, for compensation of workers linked to the minimum wage, the daily and hourly reference values ​​will be R$40.40 and R$5.51, respectively. According to government estimates, for each R$1 increase in the minimum wage, expenses with Social Security benefits, bonuses, unemployment insurance and BPC rise by approximately R$364.8 million in 2022.