Contribution salaries and adjustment rates for social security benefits have been disclosed

New brackets take into account minimum wage of BRL 1,412.00

Through Interministerial Ordinance MPS/MPF No. 2/2024, issued on January 12, the Brazilian Ministries of Finance (MF) and Social Security (MPS) have disclosed the new table of contributions payable to the National Social Security Institute (INSS) by employees, household workers and independent contractors.

It should be noted that employers must make the monthly deductions from their employees' payrolls. This is a legal requirement aimed at ensuring that all their workers are entitled to social security benefits.

The new brackets already take into account the minimum wage of BRL 1,412.00, with progressive rates ranging from 7.5% to 14%, as shown below:

The amounts above are applicable to payrolls starting January 2024, thus the corresponding adjustments will be reflected in the February paychecks.

Adjustments to social security benefits paid by the INSS

According to the ordinance, as of January 1, 2024, benefits paid by the INSS will be adjusted at a 3.71% rate.

Social security benefits granted from January 2023 onwards will be adjusted based on the following percentages:

It was also established that, for this year, the benefit salaries and contribution salaries shall not be less than BRL 1,412.00 and not exceed BRL 7,786.02.

Guidance for employers

Domingues e Pinho Contadores has a team dedicated to advising employers on changes in the labor and social security fronts and provides advice on compliance with personnel department routines, including payroll processing. You can count on our support to remain in good standing: dpc@dpc.com.br.