Insper’s Economics professor, Sergio Firpo, warned of the possible economic impacts of the proposal that aims to end the 6×1 work schedule in Brazil.
In an exclusive interview with CNN MoneyFirpo highlighted that the way this change is implemented is crucial to avoid economic imbalances.
According to the economist, a possible payroll tax relief could cause this.
“If there is a fiscal impact, that is, there will be an increase in costs due to this reduction in working hours, employers will have to hire either new workers or overtime”, he explained.
The Insper professor highlighted that this type of concession is not possible: “We are not in a situation that allows this type of tax benefit concession, even if it is understood that someone will pay the bill.”
Firpo warns that the fiscal imbalance could lead to consequences for the entire population, whether through tax increases or .
Impact on less qualified workers
Firpo also expressed concern about the .
“Those who will be most affected are workers with the lowest qualifications, especially those who are most likely to be employed without a formal contract,” he stated.
He recalled that Brazil has around 40% of its workforce in unregistered jobs or self-employed, a peculiarity that requires caution in legislative changes.
Regarding the transition period for implementing the measure, the professor defended a longer period, .
“Firms will need time to adapt. Imagine that small business that operates with a very small margin. It will be very difficult for you to adapt like that immediately”, he argued.
The economist concluded that a prolonged transition would allow for a more adequate adaptation without impacting public coffers, avoiding the need for tax compensations that could further worsen the situation of the country’s public accounts.
