Council approves new reduction in the payroll interest ceiling for INSS beneficiaries

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Limit for loans with payroll deduction will be reduced from 1.8% per month to 1.76% per month. New ceiling comes into force eight working days after publication in the ‘DOU’. New ceiling comes into force eight working days after publication in the ‘DOU’. Shutterbug75/Pixabay The National Social Security Council (CNPS) approved this Thursday (11) the reduction of the maximum interest rate charged on loans granted to retirees and pensioners of the National Social Security Institute (INSS). The ceiling for conventional payroll loans, with payroll deduction, for this group was reduced from 1.80% per month to 1.76% per month. For credit card and benefit card operations, the maximum interest rate was adjusted from 2.67% per month to 2.61% per month. When offering the line, banks and financial institutions must respect the limits established by the CNPS. The new ceiling comes into force eight working days after the publication of the decision in the Official Gazette of the Union (DOU). The reduction proposal was made by the Ministry of Social Security. The ministry has defended that reductions in the payroll ceiling accompany cuts in the Selic, the economy’s basic interest rate. On the other hand, in the assessment of the National Confederation of Financial Institutions (CNF), Selic is not the best parameter for reducing the payroll ceiling because it does not reflect the basic operating cost of banks, which could make the operation “unfeasible” throughout 2024. In December, the Central Bank’s Monetary Policy Committee (Copom) decided to reduce the Selic by 0.5 percentage points, from 12.25% per year to 11.75% per year.

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