Social Security Council postpones decision on payroll ceiling for INSS beneficiaries

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Government proposed maximum interest rate for loans with payroll deduction of 1.77%. When offering the line, banks and financial institutions must respect the limit set by the CNPS. The National Social Security Council (CNPS) postponed until next week the decision on a possible reduction in the maximum interest rate charged on loans granted to beneficiaries of the National Social Security Institute (INSS). According to minister Carlos Lupi, the council will resume discussions next Monday (04). Beforehand, according to the minister, there will be a meeting between members of the CNPS and a technician from the Central Bank. The Ministry of Social Security proposed reducing maximum loan rates from 1.84% per month to 1.77% per month in conventional payroll loans, in which the installment is deducted directly from the payroll, and from 2.73% to 2.62%. % in operations using credit cards and payroll deductible benefit cards. The National Confederation of Commerce (CNC), one of the members of the CNPS, made a counter-proposal for a smaller reduction, from 1.84% per month to 1.80% per month in conventional payroll loans and from 2.73% to 2.67% in credit card and benefit card operations. Representatives of the financial system defended postponing a possible reduction until after the next Copom meeting, scheduled for the second week of December. Payroll loan Reproduction/TV Globo This is the fourth time this year that the CNPS has discussed reducing the paycheck ceiling for INSS beneficiaries. The Ministry of Social Security has proposed that the reductions accompany the cuts in the Selic, the economy’s basic interest rate. At the beginning of November, the Central Bank’s Monetary Policy Committee (Copom) reduced the Selic rate for the third time in a row, and the rate fell 0.5 percentage points, from 12.75% per year to 12.25% per year. The council is made up of 15 members, including the Minister of Social Security, Carlos Lupi, representatives of the government, retirees and pensioners, active workers and employers. Reductions in 2023 In March, the CNPS decided to reduce the interest ceiling on conventional payroll loans for INSS beneficiaries from 2.14% to 1.70%, which led to an impasse with the banks. At the time, Banco do Brasil, Caixa Econômica Federal and other private banks temporarily suspended the offer of this credit, stating that the rates would not cover the costs of the operation. The council then approved a ‘middle ground’, and the ceiling was set at 1.97%. In August, there was a further reduction, and the interest ceiling went from 1.97% per month to 1.91% in the case of conventional payroll loans. The CNPS decision came days after the Copom reduced the Selic for the first time in three years. In October, the CNPS made a further reduction in the maximum interest rate for payroll deductions and the ceiling fell from 1.91% to 1.84% – again, the decision came after a new announcement of a Selic cut.

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