Brazil's Social Security Minister Warns INSS Patronal Cut Could Harm Pension Finances

Minister of Social Security Wolney Queiroz expressed strong concern over a congressional amendment (PEC 221/2019) that would temporarily exempt employers from paying the INSS Patronal contribution. The proposal, presented by Deputy Sérgio Turra and backed by 175‑176 legislators, also seeks to halve the FGTS rate from 8% to 4% and reduce the Gilrat contribution. Queiroz warned that losing the employer contribution—currently 20% of new employees' wages—could cut federal revenue, forcing reductions in other spending such as infrastructure, as Brazil already spends about R$ 1.14 trillion yearly on pensions, roughly 47% of primary expenses. He highlighted the fragility of the pension system amid an aging population and noted the INSS backlog of about 1.3 million new benefit requests each month, with a goal to bring average processing time below 45 days. The minister urged careful assessment of any measure that would diminish pension resources.