Brazil considers payroll deduction for rent in new legislative proposal

A new legislative proposal in Brazil, Project of Law 462/2011, aims to introduce 'consignado' rent, allowing workers under the CLT regime to have housing costs deducted directly from their payroll. This mechanism serves as an alternative for those lacking a traditional guarantor, providing more predictability for landlords while facilitating housing access for workers. The proposal has received a favorable opinion from the Commission on Constitution, Justice, and Citizenship (CCJC) and is awaiting a vote in the Chamber of Deputies. Under this plan, deductions would be capped at 30% of income.

Separately, the existing 'Crédito do Trabalhador' program for CLT workers allows for payroll-deducted loans of up to 35% of available remuneration. This program, which utilizes eSocial data, reduces risk for financial institutions and can offer lower interest rates. Workers have the option to use up to 10% of their FGTS balance or 100% of their rescission fine as a guarantee. In the event of termination, debts remain, and if guarantees were provided, they may be utilized to settle the outstanding balance.