How Does Social Security Work.Do you really know what social security is? Despite being a much discussed topic, it is common that the concepts are not completely clear. But we need to change that! After all, we are talking about one of the main guarantees for the worker’s future.
How Does Social Security Work.
Also, knowing the characteristics of the social security system is a way to stay aware of your rights and the best ways to act . It is by understanding what your retirement will be like that you can plan better and look for alternatives to have the future you always wanted.
What are the benefits of social security?
When we talk about social security, it is common to only associate it with retirement. However, there are many other benefits that are granted that deserve attention due to their positive impacts.
Maternity pay
Maternity pay is offered to those who give birth or adopt a child. In the case of professionals from private companies, the amount is paid by the employer, as it is a labor law. The INSS is responsible for paying MEIs , domestic workers or taxpayers who adopt.
sick pay
The sick pay is granted to taxpayers who are temporarily unable, due to illness or accident, to perform their duties. Therefore, a medical examination is carried out in relation to the condition. The employer must pay the first 15 days of leave and the INSS is responsible for the rest.
seclusion allowance
Imprisonment assistance seeks to support the family of taxpayers who are deprived of their freedom. In order to receive, the prisoner must be an INSS taxpayer and have as his last income an amount equal to or less than that defined by the social security. The amount is paid to dependents and its duration varies according to their age and the total contribution time.
pension for death
The death benefit is granted to the dependents of the insured person who dies. They are entitled to receive:
- spouse/partner;
- children and stepchildren under the age of 21;
- parents with economic dependence; and
- siblings under the age of 21 and economically dependent.
The benefit amount is calculated according to the taxpayer’s earnings and the duration depends on the contribution time and the beneficiary’s age. The period varies from 4 months to lifetime payment.
care benefits
There are also assistance benefits, defined by specific legislation. This is the case of the assistance benefit for the elderly or the disabled (BPC), for example. There is also a special pension for leprosy, closed-end insurance for artisanal fisherman, special pension for Thalidomide syndrome, among others.
What is social security?
Every worker with a formal contract must make an important contribution to the National Institute of Social Security (INSS). In general, part of the salary goes to this government agency. In 2020, the rates vary from 7.5% to 14% of the salary for private sector workers and from 7.5% to 22% for public servants.
For workers under the MEI system, this contribution is made from the payment of the DAS (National Simple Collection Document). In this model, the worker is entitled to a minimum retirement wage unless he/she makes contributions in an extra contribution guide.
In summary, social security functions as an insurance granted to the worker who made monthly contributions during a period . She is responsible for retirement and various benefits and benefits—available especially in times of vulnerability.
What types of social security exist?
To cover all taxpayers and their different modalities, social security appears in more than one type. Next, see what options are available and what are their features!
RGPS
The General Social Security Regime (RGPS) governs most labor relations. It involves all workers hired under the CLT regime and who are linked to the INSS. Basically, it includes professionals from the private sector.
RPPS
The Special Social Security Regime (RPPS) is associated with public entities or specific pension funds. Due to its characteristics, it is mainly composed of municipal, state and federal public servants.
What are the types of retirement?
Speaking of types, knowing what social security is also includes understanding what types of pensions are available in the country. These are issues that tend to change with changes in legislation. Check out!
By contribution time
Retirement by contribution time is when employees had to work and pay Social Security for 30 years (women) or 35 years (men) to retire, regardless of age. In other words, a woman who started contributing at age 20, for example, could retire at age 50, if she added 30 years of contribution.
However, this modality was abolished in the Social Security Reform , approved in 2019 . The purpose of this change is to increase the Government’s economy, since those who retire earlier also receive the benefit for an extended period of time.
Although there is no longer the possibility of retiring only for length of service, there is still a minimum contribution period necessary for the worker to have access to the INSS benefit. In the RGPS, women need a minimum of 15 years of contribution while men need 20 years of payment to Social Security.
In the RPPS, civil servants will have to contribute at least 25 years to social security, 10 of them in the public service and 5 in the position in which they will retire.
by age
Old-age pension was the only “traditional” modality maintained after the 2019 changes. In this case, workers must reach a minimum age and a stipulated period of contribution.
The new minimum age, under the general regime, is 65 for men and 62 for women. The minimum contribution period, in turn, is 15 years for women and 20 years for men. However, to obtain 100% of the income, it will be necessary to extend the contribution period, which may reach 40 years.
Also, special categories have lower age limits. Rural workers, teachers and public security agents, for example, have a lower age requirement.
by disability
Disability retirement is a special modality, granted to policyholders who are permanently unable to work. Those who suffer an accident at work with irreversible sequelae and/or those who have a disabling chronic disease are among the beneficiaries.
In this case, you must have contributed for at least 12 months and be an active contributor at the time of disability. From a skill of the board, the benefit is granted. The calculation of the amount to be received is made according to the new Social Security Reform rules.
How do I calculate how much I will receive from the pension?
Knowing what social security is also includes keeping an eye on rule changes. As we said, the Nova Previdência imposed some important changes and the main ones involve the calculation of benefits.
Now, it is necessary to consider the contribution time, age and other factors to know what will be the percentage of retirement income . For example, in the last legislation, the pension amount was calculated in relation to the 80% highest contributions since 1994. Today, the calculation is based on all contributions made to Social Security.
But for workers who are already contributing, some transitional rules have been created. All of them are described in this INSS news and some are planned until 2027.
It is important to remember that the amount paid for pensions cannot be less than a minimum wage , nor exceed the RGPS ceiling which, in 2020, is fixed at R$5,839.45.
Did you find the calculation of how much you will receive in social security complicated? It is possible to do this through the Social Security Calculator , made available by the Federal Government. Thus, you will have complete confidence about the information! It works, in a way, like the FGTS query : you just need to enter the data correctly to understand what the configurations are regarding the receipt.
