INSS: New 40% payroll deductible loan margin is released

INSS: New 40% payroll deductible loan margin is released
INSS: New 40% payroll deductible loan margin is released
The Provisional Measure that allows a new payroll loan margin of 40% is already in effect for the granting of payroll loans to retirees and pensioners of the INSS. MP 1.006 / 20 was published on Wednesday (31) as Law 14,131 / 2021 in the Official Gazette (DOU).

The new limit of 40% for payroll loans with an increase of five percentage points in relation to the usual conditions of 35% of the service, will be valid until December 31 of this year. Of the total margin, 35% is earmarked for contracted payroll loans and 5% for use with a credit card.

It is worth remembering that when there are no specific local laws that define a higher percentage, according to the published law, the 40% limit must also be applied to:

  • Armed Forces Military Personnel;
  • Military personnel from the states and the Federal District;
  • Military personnel from paid inactivity;
  • Public servants of any entity of the Federation;
  • Inactive public servants;
  • Public employees of the direct, municipal and foundational administration of any entity of the Federation;
  • Pensioners of servants and military personnel.

Furthermore, it was established in the measure, that the grace period to start paying the installments of the payroll loan is 120 days, according to the procedure of each financial institution. Regarding interest and other charges, there was no change.

40% of payroll

The president Jair Bolsonaro endorsed the text of the provisional measure (MP) which increases the margin of payroll deductible loans for those who are retired and pensioners of the National Social Security Institute (INSS). The measure was taken during the pandemic of the new coronavirus.

The recommendation was given by the National Social Security Council to assist beneficiaries of the INSS, especially at this time of economic crisis. The consignment of retirement or pension earmarked for the payment of loans went from 35% to 40%.

In addition, the measure includes those who are in default. “The objective is to enable potential indebted people to have access to payroll loans with lower interest rates,” says the government through an official note.

Loan with payroll deduction

The payroll margin refers to how much the beneficiary will be able to commit monthly for the payment of payroll debts. For beneficiaries, it may reach up to 40%, considering loan and credit card services.

Here’s what the changes will look like:

Division of the consignable margin for retirees and pensioners – as it was

  • payroll loan – 30% of the benefit;
  • payroll credit card – 5% of the benefit.

Division of the consignable margin for retirees and pensioners – as is

  • payroll loan – 35% of the benefit;
  • payroll credit card – 5% of the benefit.

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