INSS (National Social Security Institute) retirees who earn more than the minimum wage begin to receive benefits with a 10.16% readjustment between February 1st and 7th. If, on the one hand, the social security benefit will arrive with the replacement of 2021 inflation, on the other hand, the Income Tax discount may be greater, especially for retirees and pensioners who are up to 64 years of age.
With the collaboration of IOB consultant Daniel Soares, the report shows below how much retirement will go after the annual readjustment and with the new Income Tax discount on the benefit, for those who are not exempt.
A retiree up to 64 years old who received R$ 6,400 last year will pay R$ 178.82 more in Income Tax this year, according to the specialist. In this example, the monthly income tax will change from R$890.64 to R$1,069.46.
Here’s what your final retirement value looks like in 2022
The calculations were made by the IOB and the report, based on the current IR table.
Income tax has been higher each year for retirees and workers because the table used to calculate deductions is not updated by the government — the most recent correction is from 2015.
Calculations by Sindifisco (Union of Tax Auditors of the Federal Revenue) show that the Income Tax table today has an average lag of 134.52%, since 1996. According to the union, if the correction followed the IPCA (Extended Consumer Price Index ), no taxpayer with a monthly taxable income lower than R$4,427.59 would pay the tax. Today the exemption is R$ 1,903.98.
Retirees and pensioners aged 65 and over pay less Income Tax, as they are entitled to an extra allowance of R$ 1,903.98 as an exemption on the benefit amount. That is, to calculate the tax, this quota is subtracted from the value of the retirement or pension. The IR discount is then applied to the result.
The explanation becomes simpler with an example. If a retiree is 64 years old and his income is R$ 3,745.44, already considering the readjustment, he enters the second tax bracket. This group falls within the range of 15% on earnings between R$2,826.66 and R$3,751.05, discounting the deduction portion of R$354.80. The salary value drops to R$ 3,538.42.
But, if a retiree with the same income is 65 years old or older, the Revenue takes R$ 1,903.98 from the benefit amount to calculate the IR. The result is an income considered to be R$ 1,841.46, which is exempt from taxation. There is no charge for the tax.
The official INSS benefit readjustment index, which considers inflation measured in 2021 and was released by the government this Thursday (20), is also applied to correct the table of discounts for the social security contribution paid by workers with a formal contract and federal servers. That is, it also changes the wages of workers.
The INSS ceiling value increases with the adjustment and goes from R$ 6,433.57 to R$ 7,087.22. Those who started receiving retirement from February 2021 receive the first adjustment proportional to the months of benefit payment.
Query the extract
The INSS has already started to allow the consultation of the January benefit payment statements for part of the retirees. In the statement it is possible to check other discounts such as payroll loans, for example. Here’s the step by step.
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