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The INSS (National Institute of Social Security) issued a statement that goes straight to the hearts and pockets of Brazilians: retirement in 2025 promises new developments with the new minimum wage and the update of benefit amounts. This adjustment has generated great expectation among millions of insured people who are anxiously awaiting an answer about how much they will receive next year.
With the Annual Budget Bill (PLOA) already under consideration by the National Congress, the minimum wage is expected to increase from R$1.412,00 to R$1.509,00, representing an increase of R$97,00 — or 6,87%. And what does this mean? For INSS retirees and pensioners who receive the minimum wage, the news brings relief to their pockets, as the adjustment ensures that the benefit not only keeps up with inflation, but also brings a real increase, as a result of GDP growth over the last 12 months.
The direct impact of the new INSS minimum wage
This new minimum wage value is not a simple correction for inflation. The minimum wage appreciation policy involves a calculation based on the INPC (National Consumer Price Index) plus GDP growth, ensuring that the minimum wage increase is higher than inflation, with direct effects on social security benefits. Thus, those who receive the minimum wage from the INSS, whether retirees, pensioners or other beneficiaries, will see a direct update to R$1.509,00 in the monthly amount, with an immediate impact on purchasing power in 2025.
This policy seeks not only to ensure the maintenance of purchasing power, but also to give an extra boost to families who depend on these resources to cover basic expenses.
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Retirements above the minimum wage: a different scenario
For those insured who receive a pension in 2025 with an amount higher than the minimum wage, the situation is slightly different. These benefits will be adjusted only for inflation, as measured by the INPC, without including GDP growth. This means that retirees with amounts above the minimum wage will not receive a “real increase”, but rather a compensatory adjustment to cover losses caused by accumulated inflation.
In other words, for these insured individuals, the INSS benefit in 2025 will be updated to preserve purchasing power, but the increase will not bring an effective gain like that of those who receive the minimum wage. The exact percentage of adjustment for these pensions will be determined at the end of 2024, when the inflation data is consolidated.
Benefits linked to the minimum wage: confirmation expected
Although the amount of R$1.509,00 is expected, the economic scenario until the end of November 2024 may bring small adjustments. What is certain is that the INSS will apply these parameters to define the retirement amount in 2025, according to the established formula. Retirees who depend on the minimum wage can plan with greater peace of mind, knowing that the adjustment in their benefits will come with a real increase.
Looking to 2025: What to expect?
The INSS announcement signals an effort to maintain social security benefits in line with the cost of living and preserve the purchasing power of insured individuals. However, the situation of retirees who earn above the minimum wage remains a point of concern, since the adjustment is only compensatory.
Therefore, It is important that all beneficiaries follow the news and stay informed to understand the impact of retirement in 2025 on your budget.
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