City Hall says that changes in the rules are needed to reduce deficit by R$111 billion over the next 75 years
A São Paulo City Council approved in the first vote on Thursday, the 14th, the Social Security Reform municipal forwarded by the mayor’s management Ricardo Nunes (PSDB). Under protests from public servers inside and outside the City Hall building, the proposal was approved by 37 of the 55 councilors, the minimum necessary for a project that changes the organic law of the city. To be sanctioned, the reform must go through a new vote in the municipal plenary. The Nunes administration alleges that the reform is necessary to reduce the social security deficit in the city of São Paulo from R$171 billion to R$60 billion over the next 75 years. In 2018, councilors had already approved the increase in the social security contribution rate for public servants from 11% to 14% of salaries.
The proposal has two main points. One is to increase the minimum age, which would be 62 years for women and 65 for men in all professional categories, except teachers – the same rule applied by the National Institute of Social Security (INSS). The other is to also tax inactive employees at 14%, including those already retired, who receive more than one minimum wage (currently at R$1,100). A person who earns R$2,000, for example, would no longer receive R$280 per month. The city government estimates that 63,730 retired civil servants, who currently do not make any social security contributions, would be affected.