Inflation-adjusted wage increases are threatened by pension reform.
The inflation adjustment of retirees' pensions, guaranteed by the Constitution, is threatened by Jair Bolsonaro's (PSL) pension reform; the reform seeks to remove this rule from the Constitution, which currently applies to both private and public sector retirees and pensioners; the section of the Constitution that mandates this adjustment states that "the readjustment of benefits is ensured to preserve their real value on a permanent basis."
247 - The inflation adjustment of retirees' pensions, guaranteed by the Constitution, is threatened by Jair Bolsonaro's (PSL) pension reform. The reform seeks to remove this rule from the Constitution, which currently applies to both retirees and pensioners in the private and public sectors. The section of the Constitution that mandates this adjustment states that... "The readjustment of benefits is ensured to preserve their real value on a permanent basis."
A report from the Folha de S. Paulo newspaper. highlights that "the The new wording presented in the Social Security Amendment Proposal excludes the term 'real value' in both sections—the one dealing with the readjustment of benefits for civil servants (currently paragraph 8 of article 40) and also the one dedicated to the readjustment of benefits for private sector workers (the current paragraph 4 of article 201).
And he adds: "In both cases, the PEC (Proposed Constitutional Amendment) leaves the definition of the readjustment rules to a supplementary law yet to be drafted." From a legal standpoint, it is much easier to approve and amend a supplementary law. It requires 257 votes from deputies, in two rounds of voting, and 41 votes from senators, in one round of voting. A proposed constitutional amendment to change the Constitution, like the pension reform amendment, requires more votes—and more political clout. It demands the support of 308 deputies and 49 senators, in two votes in each House.