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Law allows payroll-deductible loans to those who receive Brazil Aid

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Law releases consigned credit to those who receive Auxílio Brasil. Discount can reach 40% of the benefit amount.| Photo: Publicity/Federal Government

President Jair Bolsonaro sanctioned the law that allows people who receive Auxílio Brasil and Benefício de Prestação Continuada (BPC) to contract payroll loans of up to 40% of the benefit amount. Discounts may be authorized for the monthly payment of loans and financing. the sanction of Law 14,431 was published in the Official Gazette this Thursday (4).

The new law also amended previous legislation and increased the payroll-deductible limit for employees governed by the Consolidation of Labor Laws (CLT) to 40%. These workers may authorize the deduction from payroll or from their available remuneration of amounts referring to the payment of loans, financing, credit cards and leasing operations granted by financial institutions and leasing companies, when provided for in the respective contracts.

Another point provided for in Law 14,431 is the expansion of the consigned credit margin for retirees and pensioners of the General Social Security System to up to 45% of the benefits. In this case, the National Institute of Social Security (INSS) will be authorized to deduct 35% of the benefit amount for the payment of loans, financing and leasing, 5% of amortization of expenses incurred through a payroll-deductible credit card or withdrawal by through a payroll-deductible credit card, and 5% of the amortization of expenses incurred through a payroll-deductible benefit card or withdrawal using a payroll-deductible benefit card.

The provisional measure – now turned into law – was approved in July by the Senate and at the end of June in the Chamber. The measure has been in effect since March, as part of a social and economic package launched by the government.

According to the law, amounts credited unduly in favor of the deceased and discounts made after the death of the benefit holder as a result of a payroll loan or payroll credit card will be refunded.

The text also says that the responsibility for the payment of the credits referred to is exclusive to the beneficiary, and the Union cannot be held responsible, even subsidiarily, in any event.

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