Social safety turns 100 in Brazil

Brazil is celebrating a century of social safety this week. All of it started method again on January 24, 1923, when the then President of the Republic Arthur Bernardes sanctioned Decree 4682. The textual content obliged all railway corporations within the nation to create pension and pension funds for his or her staff.

Within the first yr the legislation went into impact, the system housed solely the staff of 27 railroads. After 100 years of progress and lots of reforms, the Social Safety has change into a nationwide colossus: it offers with the fee of twenty-two.4 million pensions of the Normal System alone (which incorporates employees within the personal sector and public staff not registered in their very own schemes), with an annual outlay of greater than R$ 478.7 billion.

Decree 4682 ensured pensions for railway employees aged between 50 and 30 years of service. Along with an idle earnings, the laws included advantages reminiscent of medical care, reductions on medicines and a dying profit.

A century later, the factors for retirement have modified. Staff underneath the overall scheme should now meet a minimal age of 65 (males) and 62 (ladies), in addition to a contribution interval of 20 years (males) and 15 years (ladies). Moreover, even when retired, the policyholder pays social safety contributions starting from 7.5% to 22% of the profit.

The social security internet – which in 1923 was restricted to pension, well being and dying advantages – has developed into a variety of greater than 20 advantages, allowances and pensions. Along with the several types of retirement, which range based on the profile and historical past of every employee, the Nationwide Social Safety Institute (INSS) provides advantages for accidents, sickness and imprisonment, in addition to seasonal closure insurance coverage for artisan fishermen , maternity allowance and household allowance. The Social Safety additionally dispenses the Persevering with Allowance (BPC) to the aged over 65 and to folks with disabilities, along with dying, thalidomide, leprosy and congenital zika virus syndrome pensions.


For the reason that 1988 structure, Social Safety has gone by a minimum of seven reforms. The primary of those was Constitutional Modification 3, of 1993, which established the social safety contributions of civil servants. The latest change was Constitutional Modification 103, in 2019, which extinguished qualifying interval retirement and raised the minimal age for each women and men. See the details.

The principle justification for the reforms which have taken place over time has been to beat two challenges: the growing older of the inhabitants and the deficit of the social safety system. In 1945, Brazil had solely 200,000 retirees. based on the final Statistical Bulletin of the Social Safetythe variety of advantages disbursed in November 2022 – together with pensions, support and pensions – exceeded 37.5 million.

The reason for this exponential progress lies within the growing older of Brazilians. In 1923, when the Social Safety was created, the over-60s have been solely 4% of the whole. At this time they symbolize 15%. A century in the past, the nation had 13 folks of working age for each aged particular person. In 2023, the ratio is 4 to 1.

Growing the variety of policyholders has a value. Second Statistical Bulletin of the Social Safety, the INSS disbursed, in December 2006, R$ 12.6 billion in advantages. In December 2021, the most recent information accessible, the determine jumped to 48.7 billion reais.

One of many penalties is the deficit. In line with the 2023 price range invoice (PLN 32/2022) despatched to the Nationwide Congress by the chief department, the overall regime would have a deficit of R$267.2 billion this yr. For the civil and army civil servants schemes, the detrimental steadiness was calculated at R$47.3 billion and R$48.5 billion, respectively.

Estimates counsel that the most recent reform, which occurred in 2019, might generate financial savings of as much as BRL 156.1 billion in social safety accounts. The quantity is 78.8% greater than the R$ 87.3 billion anticipated for the interval wherein the proposed modification to the Structure that instituted the adjustments (PEC 133/2019) was accepted by Congress.


Greater than 40 years in the past, Regulation 6.926, of 1981, established January 24 as Nationwide Pensioner Day. This week, senators took to social networks to mark the date and commemorate 100 years of the primary social safety legislation in Brazil.

For Senator Weverton (PDT-MA), the most recent reforms “have been merciless to the Brazilian employee”. In line with the parliamentarian, the brand new guidelines hurt the poorest, who work longer within the casual sector and will not be at all times capable of contribute to social safety.

“We have now an excellent problem forward of us, which is to advertise employment and earnings era insurance policies to convey these employees again to formality and get better the job safety that has at all times positioned Brazil forward of different international locations on this sector. It’s crucial to achieve success on these two fronts in order that Social Safety is sustainable sooner or later,” she burdened.

For Senator Rogério Carvalho (PT-SE) it’s vital “to overview and enhance the lifetime of our pensioners”. “We have now so much to get better from what was taken away from pensioners and our pension system with the reform carried out by [Jair] Bolsonaro, who took away rights and made the poorest even poorer,” he wrote.

Senator Romário (PL-RJ) congratulated the retirees. “We have fun the expertise and exhausting work of retirees. It’s as much as the state to ensure the help of these folks, usually by the Social Safety itself, in order that they will proceed to have a productive and dignified life,” he posted.

Senator Paulo Rocha (PT-PA) recalled that the primary centenary legislation on the topic was accepted solely after a lot stress from the railway employees. “Do you know that the proper to a pension has been gained in our nation solely after years and years of struggles? This proper was solely attainable because of the railway employees’ strike,” he posted.

nationwide week

With a view to enhance the Brazilian social safety system and encourage employee and employer membership, the Senator Paulo Paim (PT-RS) launched a invoice establishing Nationwide Social Safety Week. In line with the proposal (PL 2.783/2022), the date can be celebrated yearly within the week of January twenty fourth.

The aim, explains the creator, is to make the inhabitants conscious of the significance of the social safety system which, along with well being and social help, constitutes the tripod of social safety. It underlines the position of the system as a mechanism of earnings distribution, financial increase and safety towards social dangers, having amongst its targets common protection and repair.

In line with the venture, the actions to be developed throughout the week ought to purpose at favoring the formalization of labor and becoming a member of the social safety system, in addition to making the inhabitants conscious of the chance of accidents at work and the injury attributable to tax evasion of social safety contributions.

Senado Company (Replica approved upon citation from the Senado Senate)

Supply: Senate Company

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