Chamber approves project on minimum wage and BPC; see what changes

by Andrea
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The Chamber of Deputies approved this Thursday (19) the bill that limits the real increase in the minimum wage and changes rules for access to the Continuous Payment Benefit (BPC).

These and other points contained in the text aim to improve the execution of social programs and benefits, at the same time containing the growth of Executive expenses.

The text was the third approved by the Chamber of Commerce. The government estimated a cut of around R$70 billion by 2026 with the approval of the package.

What was voted on, however, was the replacement for the rapporteur, deputy Isnaldo Bulhões (MDB-AL), who removed changes from the project in the readjustment of the Constitutional Fund of the Federal District. He also softened the changes to the BPC.

In this way, there is a “dehydration” of the measures, which should result in a smaller amount of cut.

Understand changes

The text, which now goes to the Senate, provides that by 2030.

Thus, the increase in the minimum wage continues to provide for an increase above inflation based on the Gross Domestic Product (GDP), but will be limited to the growth of expenses within the , which grow at a maximum of 2.5% per year.

Currently, the valuation policy takes into account the sum of inflation measured by the National Consumer Price Index (INPC) in the 12 months up to November with the real GDP growth index from the previous two years.

Under the new rule, the minimum wage goes to R$1,518 – R$10 less than what it would be under the current rule.

as to CNN showed, according to the government, the new rule could generate savings of R$109.8 billion between 2025 and 2030, but could impact retirees, pensioners and beneficiaries of social programs linked to the minimum.

The proposal also requires biometric registration for the granting, renewal and maintenance of social security benefits, as well as determining a periodic registration update with a maximum period of 24 months for benefits that use CadÚnico.

The two measures were adopted with the intention of reducing possible fraud in the granting of benefits.

. The small margin of favorable votes denotes the difficulty the issue faces in the plenary.

The proposal also establishes that municipalities and the Federal District respect maximum rates of single-person families in Bolsa Família. The project allows an act of the Executive Branch to change the limit value for dismissal from the Bolsa Família Program.

In the case of the Constitutional Fund of the Federal District, the annual growth in expenses will be limited to the variation measured by the IPCA instead of taking into account variations in the Union’s net current revenue.

The government predicted savings of R$12 billion over the next 15 years by changing the calculation of transfers to the Fund. The FCDF consists of resources paid by the Union to the Federal District to pay for public security, education and health services to federal public bodies based in the capital and the 130 embassies in Brasília and surrounding areas.

“With these measures, the project seeks to improve the execution of social programs and the payment of benefits, concentrating efforts on serving those who really need it, while adjusting the growth of expenses to make the guarantee of rights compatible with fiscal sustainability, like other measures recently adopted”, said Bulhões in his opinion.

The changes foreseen for the BPC in the original project were softened by the rapporteur, after a great reaction from parliamentarians.

If it were maintained as it was, the rapporteur argues, the project could have an “undesired” social impact with the undue cancellation of thousands of benefits, “increasing the vulnerability of families of elderly and disabled people”.

*With information from Reuters

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