Luís Inácio Lula da Silva, president elected last Sunday (30), will have to face many economic challenges from January 2023 onwards. Among them, the possible review of the Social Security reform, a measure approved during Jair Bolsonaro's term. In his Government plan, Lula presents his proposals related to the granting of pensions.

The Pension Reform came into force in 2019, through Constitutional Amendment 103. Pension grants for Brazilian workers, whether in the private sector or public servants, decreased by around 37% in 2020 compared to the number in the previous year .

The calculation of benefits, the minimum age and transitional regulations were the main points of change in the Pension Reform. The new terms of the Brazilian retirement process do not fit into the PT project, which has already announced a review of the measures in its future government.

One of the most controversial requirements for retirement is the minimum age. Lula sees the measure as an affront to the protection of the lives of workers who cannot retire before the age of 55, even if, for example, they have contributed for more than 25 years.

Another aspect of the reform to be reviewed in 2023 is the death pension, which is 50% of the pension value plus 10% for each dependent. The only case in which the beneficiary receives 100% of the amount they were entitled to before the pension reform is that of disabled or invalid dependents.

The president-elect has as one of his most important economic proposals the increase in the minimum wage with an adjustment above inflation. The measure directly affects retirees, as the minimum wage is the minimum value for retirement, pensions and other social security and social benefits, such as the Continuous Payment Benefit (BPC).

The increase in the minimum wage above inflation, introduced during Lula's two presidential terms, has been criticized by the opposition for its potential impact on government spending. During Bolsonaro's term, the value of the minimum wage was adjusted annually following inflation.

The PT believes that the effective increase in the minimum wage is a strategic part of the plan to strengthen the economy. In other words, if the worker receives a salary adjusted above inflation, he or she will consume more and contribute to the growth of the domestic market and the country's revenue.

In addition to reviewing the Pension Reform measures, the Lula government's plan mentions the addition of new categories of workers to the pension system, such as drivers and app delivery people. These roles, which have been widely accepted in Brazil in recent years, are now considered underemployment, as there is no guarantee of labor rights or social security benefits for hours worked.

Despite being mentioned in the government plan of the elected president and other candidates such as Ciro Gomes (PDT) and Simone Tebet (MDB), pension reform was barely a topic in the debates between presidential candidates and this year's free electoral campaigns. . In the 2018 election, the scenario was different. The discussion about the granting of pensions was frequently present among the candidates.

Current president Jair Bolsonaro, who led the Social Security reform and was responsible for its implementation in 2019, did not mention the measure in his government plan this year. Bolsonaro, who was defeated in his re-election, also does not address the issues of the minimum wage or pensions for Brazilian workers in his proposal document.

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