From the first day of 2021, it was established that the INSS (National Social Security Institute) would carry out readjustments in the value of its benefits. However, the INSS has been making adjustments to its payments since 1991.
The readjustments are based on the INPC (National Consumer Price Index), the INPC data are based on surveys carried out by the IBGE (Brazilian Institute of Geography and Statistics).
Check below what these adjustments are and how they are made.
What this article covers:
How is the readjustment of social security benefits done?
The INPC, calculated by the IBGE, defines the readjustment of INSS benefits as a whole, but never exceeds or falls below the minimum wage (except in cases such as sickness benefit, accident, permanence allowance , etc.).
In case of monthly income higher than one minimum wage (R$ 1,100.00) they will be paid from the first to the fifth business day of the month in question. Monthly income up to one minimum wage will be paid on the fifth working day before the end of the month, and on the last fifth day of the following month.
The values referring to the beginning of 2020 were readjusted by 5.45%.
When does the INSS readjustment occur?
The readjustments made by the INSS take place at the beginning of each year, and are announced through an ordinance on the Institute’s website.
Always proportionate according to the DIB (Benefit Start Date), the percentage of readjustments may vary. In 2021, for example, it was defined that this percentage would be 5.45%.
What were the INSS readjustment rates since 1991?
In 1991, the INSS had a readjustment index that revolved around 8%, 9% and 10%. These days, those percentages fluctuate between 7.5%, 9%, 12%, and even 14%.
As previously explained, the readjustments are based on the INPC. O INPC aims to help the worker’s purchasing power, covers families that have a monthly income equivalent to one to five minimum wages (R$ 1,100 to R$ 5,500).
The INPC is also responsible for trying to correct inflation with its readjustments.