The Council agrees to reduce the rate of salaries of retirees and retirees INSS | Economy

The National Social Security Council (CNPS) approved Thursday (17), by a vote of 14 to 1. Reducing the maximum interest rate charged on payroll loans For INSS retirees and retirees.

Interest cap will go from 1.97% per month to 1.91% In the case of a traditional payroll loan, with a payroll deduction.

The interest limit on the credit card method will increase from 2.89% to 2.83%.

According to Social Security Minister Carlos Lupe, if the Monetary Policy Committee (Copom) continues to lower the economy’s base interest rate, the CNPS may again lower the payroll deduction ceiling for INSS recipients.

“Together with the Ministry of Finance, Banco do Brasil and Caixa Econômica, we propose a rate of 1.91% for the Payroll Loan, and 2.83% for the Payroll Credit Card, with the reinforcement that if the next Central Bank meeting cuts the interest rate [Selic]we will meet to download again [teto do consignado]Luby said at the meeting.

The minister also commented on the decision on a social networking site: “The measure contradicts the recent base interest rate cut by the Central Bank and got 13 votes in favor and only one against.”

The representative of the National Federation of Financial Institutions (CNF) issued the corresponding vote.

Previous attempt to reduce

In March, CNPS decided to lower the traditional payroll interest cap for INSS recipients from 2.14% to 1.70%Which led to a confrontation with the banks.

At the time, Banco do Brasil, Caixa Econômica Federal, and other private banks temporarily suspended offering such credit, stating that fees would not cover the costs of the operation.

The board then approved a “middle ground”, and the ceiling was set at 1.97%.

Thursday’s decision still needs to be published in the Official Gazette.