Dilma vetoes extension of minimum wage adjustment rule for pensions

The argument is that the linking of all INSS benefits the minimum wage is unconstitutional.
30/07/2015 10h56 - Updated 30/07/2015 10h56
Photo: Agency Brazil

President Dilma Rousseff vetoed the extension of the adjustment of the minimum wage policy to all retirees of the National Social Security Institute (INSS). The minimum compensation is calculated by the change of Gross Domestic Product (START) two previous years plus inflation measured by the Consumer Price Index (INPC).

With the veto, the INSS benefits above the minimum salary will continue to be adjusted by variation of the INPC.

The proposal was part of Provisional Measure 672, extending until 2019 the current minimum wage adjustment calculation, approved by the Senate in June. Rousseff signed the text part, with veto only to the extent of calculating all benefits from social security. The veto was published today (30) in the Official Gazette. The text will return to Congress, which can overturn the decision of President.

In veto justification, Dilma argued that the linking of all INSS benefits the minimum wage is unconstitutional. "When conducting link between the increases of the minimum wage appreciation policy and benefits paid by the Social Security General Regime – RGPS, the measures would violate the provisions of Article 7, Item IV, of the Constitution. "

Besides that, second Dilma, the ban does not violate the constitutional guarantee that the benefits are not less than a minimum wage.

According to the Ministry of Welfare, the extent of minimum rules for all retirees and pensioners would have an impact of R $ 9 billion in pension accounts in 2015.

Source: Agency Brazil

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