Staying within the rules related to social security is important for those who intend to retire and enjoy the benefits granted to their taxpayers. Understanding what social security is and the changes after its recent reform is essential to ensuring receipt.
What this article covers:
What is the INSS Social Security benefit?
Social security is insurance that guarantees the livelihood of the taxpayer when he is no longer able to work, whether due to advancing age, accidents or even illnesses.
Every formal worker is a member of the INSS, which is responsible for managing the benefit. Self-employed people can also guarantee their retirement through social security, contributing monthly to the regime.
Social security reform: which occurred
The reform carried out on November 12, 2019 changed some rules related to access to the benefit by workers. Are they:
To receive the age benefit, it is necessary, for women, to reach 62 years of age, and for men, to reach 65 years of age. The age is reduced in the case of some professional categories, such as police officers, who retire at 55 years of age.
The reform determined that it is no longer possible to retire only after 15 years of contribution, without reaching the stipulated minimum age.
The monthly contribution percentage is calculated based on the worker’s income, ranging from 7.5% to 14%. For freelancers to receive all the benefits, the contribution is 20% on top of earnings.
The amount to be received by the taxpayer is 60% on top of the average of all monthly contributions made since July 1994.
What benefits does social security offer?
Pensions offer a number of benefits. We list them below:
- Retirement due to disability and old age;
- Retirement by time of contribution;
- Special retirement;
- Illness, accident and imprisonment assistance;
- Pension for death and special pension;
- Maternity allowance and family allowance.
It is worth remembering that with reforms the benefits can also be changed.
How do social security schemes work?
Social security has three distinct regimes:
- Own regime: intended for public servants.
- General regime: responsible for granting the benefit to employees, self-employed, employers and individual taxpayers.
- Complementary regime: not mandatory, usually used individually.
Social security is a benefit granted to its contributors, who make a monthly payment to receive it later. There are several ways to retire through the INSSand the pension reform stipulated some new rules for the process.