New minimum will impact INSS retirements in 2022

Last Tuesday, 31, the federal government forwarded to the National Congress the Annual Budget Law project released by the Ministry of Economy. It contains the proposal for minimum wage adjustment for 2022, which will have value of BRL 1,169.

The amount is R$69 more than the current floor, stipulated at R$1,100. The value equates to a rise slightly greater than 6.2%. The percentage is the same as the forecast by the Ministry of Economy for the National Consumer Price Index (INPC) this year, which imposes a wage adjustment without real gain for the worker.

2016: Increase of 11.6% adjusting the minimum wage to R$ 880;

2017: Increase of 6.48% adjusting the minimum wage to R$ 937;

2018: Adjustment of 1.81% adjusting the minimum wage to R$954;

2019: 4.61% readjustment adjusting the minimum wage to R$998;

2020: 4.7% readjustment adjusting the minimum wage to R$1,045;

2021: Readjustment of 5.22% adjusting the minimum wage to R$1,100.

2022: 6.2% readjustment adjusting the minimum wage to R$1,169 (forecast).

Data from the Inter-Union Department of Socio-Economic Studies (Dieese) show that the minimum wage is used as benchmark for 50 million Statistic people in the country, 24 million of them are beneficiaries of the National Social Security Institute (INSS).

The proposal provides for an increase in the minimum wage to R$1,169.00.  (Photo: Reproduction) The proposal provides for an increase in the minimum wage to R$1,169.00. (Photo: Reproduction)

Of the total number of policyholders, 70% receive the INSS benefit worth a minimum wage. In this case, if the current projection is valid, most of the autarchy’s retirees and pensioners will receive on their payroll from 2022 the amount of R$ 1,169.

In the case of those who receive the ceiling of the INSS, the maximum amount paid to the institution’s shareholders, the amount can reach R$ 6,843.07 next year.

In addition to establishing a new salary level for INSS insured, the increase of each R$ 1 in the minimum wage implies extra expense for the government. To give you an idea, in 2020, the expenses were approximately R$315 million. An increase of almost R$70, foreseen for January, will represent an extra expense of around R$22 billion.