The Minister of Labor, Solidarity and Social Security, Maria do Rosário Palma Ramalho.
Despite having initially stated that it would guarantee the payment of 100% of workers’ salaries, the Government approved the same existing model of only two thirds.
The Government retreated from its promise to guarantee full wages to workers covered by the simplified layoff regime created following Storm Kristin. Contrary to what was initially announced by the Ministry of Labor, Solidarity and Social Security (MTSSS), workers will receive just two thirds of the gross salaryreplicating the model already provided for in the Labor Code.
Initially, the executive had guaranteed that the simplified regime would have more favorable conditions than the traditional layoff. Among the measures announced was the payment of 100% of remuneration illiquid to workers, with Social Security bearing 80% of this amount and companies the remaining 20%. The objective would be to facilitate the use of the mechanism by companies affected by the storm and mitigate the impact on workers’ income.
However, Decree-Law 31-C/2026, published on February 9, limited itself to simplifying the procedures for accessing the regime, not delivering promised salary improvements. Now, the MTSSS announced that a complementary diploma, currently awaiting promulgation, was approved, which defines the effective terms of retributive compensation.
According to the note released by the ministry led by Rosário Palma Ramalho, workers on layoff will be entitled to two thirds of the gross salaryup to a maximum limit of three times the Guaranteed Minimum Monthly Remuneration, set at 2760 euros. Even so, the amount paid cannot be lower than the current national minimum wage, currently R$920.
Also the burden sharing between companies and Social Security differs from what had been announced. During the first 60 days of reduced working time or contract suspension, Social Security ensures 80% of the compensation due to the worker, with the company responsible for the remaining 20%. After this period, the usual division provided for in labor law applies: 70% borne by Social Security and 30% by employers.
The executive also clarified that the extraordinary incentive to maintain jobs cannot be accumulated with layoffalthough both may be required sequentially. The exemption from paying Social Security contributions can be accumulated both with the incentive to maintain employment and with the simplified contract suspension regime.
