The concession made to Brazilian congresswomen will allow female workers in the private enterprise to retire with full pay five years before men.
The amendment approved last week by the lower house floor changed the retirement pay for women in the private enterprise to 60 percent of the average contribution for those retiring after 15 years of contribution time. If female workers retire later, the amount increases two percentage points a year until it reaches the full average after 35 years of contribution time.
The lower house also passed a special item reducing the minimum contribution time from 20 to 15 years for male workers in the private enterprise. The increase in their retirement pay, however, only starts after the 21st year of contribution. To retire with full average, retirees will still have to contribute for 40 years.
As it stood originally, the main text of the overhaul set the minimum contribution time at 20 years for men, 15 for women, but the formula had not changed from the government’s original proposal, in which the increase begins in the 21st year of contribution, allowing workers to retire with full pay after 40 years of contribution. With the special items voted on, the original formula is retained only for men.
However, to apply for retirement, women must continue to observe the minimum age of 62, or the criteria in the transition rules. For men, in turn, the minimum age will be 65, and may be lowered as per one of four transition rules passed.