Meeting of the National Social Security Council (CNPS), in Brasília.| Photo: Ascom Ministry

The National Social Security Council (CNPS) approved this Monday (13), a federal government proposal, which provides for the reduction of the maximum interest rate charged on payroll loans for INSS retirees and pensioners. The collegiate, coordinated by Minister Carlos Lupi, determined the new limit at 1.70%.

With the change, the interest ceiling will go from 2.14% per month to 1.70% in the case of the conventional payroll loan. The interest ceiling on payroll credit card operations will rise from the current 3.06% to 2.62%.

According to the minister, Brazil has more than eight million beneficiaries who have an active payroll contract and about 1.8 million have already reached the margin usage limit – set at 45%. Lupi highlighted that the change will especially benefit those earning less than two minimum wages.

“I see these current rates as abusive for INSS beneficiaries, who are, for the most part, extremely vulnerable people. We seek to find a path that is best for the most fragile part: the Brazilian people, ”she explained.

In addition to the reduction of rates, the council – which includes government representatives, retirees, companies and workers – also defined the formation of work committees, to analyze the payroll credit card model within 60 days. A new meeting was scheduled for April 27 to indicate the current margin percentage.