Brazil: INSS Update

The Resolution Nr. 9/2019 specifies the modifications to the INSS contributions in line with the social security regulations.

According to the new resolution, beenfits pais by the National Institute for Social Security (INSS) have been changed to 3,43% since January 1st, 2019.

 

Adaptation of INSS Contributions

INSS benefits are paid for:

  • accident aid
  • sick pay
  • widow’s pension
  • disability pension
  • Maternity wage
  • vocational rehabilitation

 

Apart from the new percentage, the new resolution also adapted the percentage of INSS-payments that have to be made by employees since January 1st, 2019sonst. These are based on their income:

 

Income (R$) Contributory Share for receiving INSS
until 1.751,81 8%
from 1.751,82 until 2.919,72 9%
from 2.919,73 until 5.839,45 11%

Thus, the maximum contribution limit equals 642,34 R $ for employees.

 

Adaptation of Sanctions

Another important aspect of the resolution is the adaptation of sanctions in case of non-compliance with the regulations of the social security resolution (RSP). Whenever Art. 283 PSR does not specify sanctions, their volume depends on the gravity of infraction, ranging from 2.411,28 R $ to 241.126,88 R $.

 

Consequences for Companies

Due to the changes, it is mandatory for companies to update and adapt the contribution fields in their payroll accounting systems. If they do not comply with the requirements of the social security regulations they are risking the above mentioned penalties.

 

These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!

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