Centrão wants FGTS in half and INSS zeroed in exchange for the end of 6 X 1

Amendment presented by the PP also wants to include a 10-year transition period and a loophole for collective agreements to exceed the ceiling

An amendment (- 114 kB) presented by Centrão wants to include in the PEC at the end of the 6 X 1 scale a series of tax compensations and labor flexibility to mitigate the financial impacts on the productive sector. Here are 3 examples:

  • FGTS in half – cut from 8% to 4% of the salary paid by the company to the Guarantee Fund;
  • INSS zeroed – temporary exemption from Social Security payments (which is 20% of the salary) for new hires after the reduction in working hours;
  • tax deduction – possibility of deducting expenses with new jobs from the IRPJ and CSLL calculation base. Simples Nacional and Profit Presumed companies that create new jobs will also receive equivalent tax credits to offset the costs.

The amendment was presented by deputy Sérgio Turra (PP-RS) and had 176 signatures – to present suggestions for PECs it is necessary to have at least 171. Read that of all congressmen who signed the document.

The text presented establishes that the reduction in working hours will only come into force 10 years after the approval of the PEC. It also conditions the change to the achievement of national productivity targets (which are not specified in the document what they would be) by a “official statistical body”.

In other words, if the economy and the efficiency of the Brazilian worker – which is low, as shown do Poder360 –do not grow according to official data, the reduction in working hours may be halted.

The text also opens a loophole for money from the FAT (Worker Support Fund) to be used to create government financial aid programs, subsidies or consultancies for companies to organize their new work shifts without going bankrupt. Currently, the funds from the fund are used to pay unemployment insurance and pay the salary bonus – which will remain.

Furthermore, the reduction to 40 hours can only come into force when PLPs (Complementary Bills) with transition rules for sectors with specific working hours, such as health and safety, are sent and approved.

The amendment also opens a loophole to exceed 40 hours. An excerpt from the document allows, for example, that collective agreements and conventions have prevalence about legislation on topics such as time banks, relay schedules and intervals.

That is, even if the PEC determines 40 hours, employers will be able to extend the total weekly working hours by up to 30% (52 hours) if agreed with the unions.

The project also shields essential services. Sectors whose interruption compromises the preservation of life, health, safety, mobility, supply or critical infrastructures will maintain the current maximum working hours of 44 hours per week.

These sectors will be defined later via PLP.