Lula's government reduces the maximum interest rate for payroll loans for retirees to 1,7% per month.
The drop in the rate will benefit 8 million people with loans.
Brazil Agency - Retirees and pensioners of the National Social Security Institute (INSS) will pay less in future payroll loan operations. By a vote of 12 to 3, the National Social Security Council (CNPS) approved this Monday (13) the new interest rate limit of 1,7% per month for these operations.
The new ceiling is 0,44 percentage points lower than the old limit of 2,14% per month, a level that has been in effect since last year. The interest rate ceiling for payroll-deductible credit cards fell from 3,06% to 2,62% per month. Proposed by the government itself, the measures will come into effect as soon as the normative instruction is published in the Official Gazette of the Union.
According to the Ministry of Social Security, the reduction will benefit around 8 million citizens with loans discounted directly from their payroll. Of this total, around 1,8 million beneficiaries reached the maximum discount limit of 45% of their retirement or pension.
At today's meeting, the Minister of Social Security, Carlos Lupi, announced his intention to discuss the percentage of payroll deductions at the next CNPS meeting on April 27th. Lupi described the current rates as "abusive" and said they punish vulnerable people. According to the president of the INSS (National Institute of Social Security), Glauco Wamburg, the average income of retirees and pensioners who use payroll-deducted loans is R$ 1,7.
The CNPS also approved, at its meeting this Monday, the formation of a working committee to analyze the payroll-deducted credit card system for INSS beneficiaries, with the same proportionality as the council, and which must conclude the analysis within 60 days. A committee was also approved to discuss the composition and competence of the collegiate body within 90 days.