Public transport in Rio de Janeiro: new rules demand attention

RJ State Court has lowered earnings limit for granting benefits to citizens

On July 12, the new limits for granting the ‘Tarifa Social’ (Social Fare) and the ‘Bilhete Único Intermunicipal’ – BUI (Intercity Unified Ticket) benefits in the State of Rio de Janeiro came into force. As of the aforementioned date, only those who report a monthly income of less than BRL 3,205.20 - and no longer BRL 7,507.49 – are eligible for the benefits.

The new limit was set by the RJ State Court of Justice, which held unconstitutional State Law No. 8,297/2019, which had broadened the benefit to include citizens with a monthly income equivalent to the Social Security benefits cap.

This change has a major impact not only for citizens based in the State of Rio de Janeiro, but also for the companies that register their employees with Fetranspor – the Federation of Passenger Transport Companies of the State – for the granting of transit vouchers.

Check out below some points of attention:

What are the benefits about?

Until July 11, Rio de Janeiro state citizens whose reported income did not exceed BRL 7,507.49 per month benefited from the Tarifa Social, and were granted the following discounts on subway and Supervia (urban train) tickets:

	Full price	Discount price
Subway	BRL 6.90	BRL 5.00
Supervia	BRL 7.40

AIn addition, those citizens were also entitled to the Intercity Unified Ticket – BUI, which allowed them to pay BRL 8.55 for two bus trips made within 3 hours, for travels between different cities within the state.

With the new ruling, these benefits are now restricted to people with monthly earnings not exceeding BRL 3,205.20.

What changes for those who have already joined the program?

At first, the new income limit will only apply to new users.

However, in the future, all those eligible for the program will have to apply once again to prove that they fall into the new income brackets. But until the re-application schedule is released, the benefit will be maintained for users who have already joined the program.

How does that impact businesses?

Employers need to keep in mind that, in the case of transit vouchers tied to the company, it is the company itself that is required to report the employee's income for the granting of the benefit.

Riocard – the authority responsible for the smartcard system used in the transport system of Rio de Janeiro state –, announced that if an employer reports any changes to the salary of its workers after July 12, the benefit will be kept only for employees whose new reported wage is equal to or less than BRL 3,205.20 . Benefits will be revoked for employers with earnings greater than said amount.

Situation	Consequences
Citizens with Tarifa Social/BUI granted before July 12	Nothing changes for now. However, in the future all those who applied for the benefit will be required to re-apply and, only then, will the benefit be revoked for users with earnings greater than BRL 3.205,20.
Citizens who have been granted Tarifa Social/BUI, but with changes in their earnings reported after July 12	If there is a change in the earnings reported, users with earnings greater than BRL 3,205.20 will have their benefits revoked.
Tarifa Social/BUI requested and earnings reported after July 12	If the earnings reported are less than or equal to BRL 3,205.20, the benefit will be granted.

Companies should keep an eye out for the publication of the instructions on how the re-application of their employees should be made. In any case, employers should keep in mind that, for new workers, applications for the Tarifa Social and BUI must be follow the new court ruling.

Expert support

Domingues e Pinho Contadores has a team of specialists, who are always up to date on current regulations, to assist its clients on benefits purchase and management, in full compliance with the rules in force. Talk to our team of experts: dpc@dpc.com.br.