What changed
2026-09-01 14:00 UTC → 2026-09-08 21:07 UTC ·
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Brazil INSS reforms and 2027 budget projections
In By late August 2026, the Brazilian government expanded its biometric initiatives. The INSS introduced Normative Instruction No. 213, updated rules for payroll loans, allowing retirees and pensioners without facial biometrics to authorize payroll loans via the Meu INSS app using Gov.br credentials if they lack facial biometry. credentials. To mitigate prevent fraud, the agency prohibited telephone authorizations, and banks must confirm transfers within 20 days or face cancellation. This regulation also officially terminates the ‘Meu INSS Vale+’ program. To address operational challenges, the INSS government is seeking authorization gradually implementing biometric requirements for a new public contest to fill 8,500 positions. Efforts to reduce the benefit request backlog have shown progress, with pending requests falling from 1.8 million in June to 1.55 million in July. However, officials noted that faster processing may increase immediate maintenance and renewal of social security spending. Regarding fiscal policy, benefits, though current beneficiaries will not face immediate automatic blocks. Additionally, the government has announced its 2027 budget projections, forecasting a primary fiscal surplus of R$ 73.2 billion (0.5% Ministry of GDP). Planning Minister Bruno Moretti stated this balance is expected even when accounting for expenses like certain judicial settlements. To achieve this, Ports and Airports launched the administration plans to limit personnel spending growth National Sectoral Biometric Identification Policy to a real increase of 0.6%. Finance Minister Dario Durigan confirmed standardize facial and digital recognition across airports, ports, and waterways, aiming for ‘seamless’ and ‘touchless’ travel. In September 2026, the government is not discussing decoupling benefits from submitted the minimum wage. The projected 2027 Annual Budget Law (PLOA) to Congress, proposing a minimum wage is of R$ 1,741, a 1,741 for January. This 7.4% nominal increase over the 2026 value of R$ 1,621. Because approximately 45% is based on inflation and economic growth. The budget proposal includes an optimistic GDP growth forecast of social security benefits are indexed 2.46%, compared to the minimum wage, this adjustment impacts INSS pensions, 1.5% projected by the Continuous Cash Benefit (BPC), financial market. Other economic projections for 2027 include inflation (IPCA) at 3.6% and unemployment insurance. Concurrently, the National Social Security Council (CNPS) approved downward revisions to expenditure projections. For 2027, estimates were lowered by approximately Selic interest rate at 11.41%. Regarding fiscal targets, the PLOA aims for a primary surplus of R$ 5 18.6 billion to (0.1% of GDP) for the central government. When adjusted for fiscal target compliance, the projected surplus is R$ 1.218 trillion, though this still represents a 7.92% increase over 2026. By late August 2026, 83.4 billion, or 0.6% of GDP. The proposal is scheduled for analysis by the government expanded its biometric initiatives. Joint Committee on Public Plans, Budgets, and Oversight (CMO), with a target approval deadline of December 22.