Government brings forward the first installment of the 13th salary payment for retirees and pensioners.
According to a decree authorized by the Presidential Palace, retirees and pensioners of the INSS (Brazilian National Social Security Institute) will receive the first part of their 13th-month salary along with their August payment; the first installment of the annual bonus will correspond to up to 50% of the benefit amount.
By Ana Cristina Campos – Reporter for Agência Brasil
Retirees and pensioners of the National Social Security Institute (INSS) will receive the first part of their 13th-month salary along with their August payment. The first installment of the annual bonus will correspond to up to 50% of the benefit amount.
The decree authorizing the advance was signed this Monday (16) by President Michel Temer, but has not yet been published in Official GazetteThis measure is expected to inject R$ 21 billion into the country's economy and boost commerce and other sectors.
As stipulated by law, no income tax will be deducted from the first installment paid to retirees and pensioners of the INSS (Brazilian National Social Security Institute). The tax on this amount can only be levied on the second installment of the Christmas bonus, to be paid along with the November salary.
Since 2006, the government has been paying the first installment of the 13th-month salary to retirees and pensioners in advance, in the August payroll.
Only in 2015 was the payment postponed until September, due to the weak pace of the economy and the drop in tax revenue.