Since last Monday (19), the new payroll card has been available to INSS beneficiaries. The National Institute of Social Security published a normative ordinance in the Official Gazette of the Union on the 14th, disclosing how the new form of credit will work for beneficiaries.

At least three banks are already offering the possibility to retirees, pensioners and other beneficiaries. The insured can commit another 5% of their social security income to the new card, that is, a total of 45% in payroll deductions, in addition to the 40% already allowed by law.

The new INSS payroll card is similar to a credit card, but does not include credit in the name. The pensioner or retiree does not pay an annual fee and can withdraw up to 70% of the card limit in cash.

The card includes free life insurance, free funeral services, discounts from 15% to 80% at pharmacies, loyalty program points and the bill can be paid within 40 days after using the credit.

Under § 1 of the regulation, discounts cannot exceed the limit of 45% of the benefit's monthly income, nor exceed the sum of discounts and/or deductions at the time of the contract after deducting the mandatory and voluntary contribution:

The banks that are already offering the payroll card to INSS retirees and pensioners are BMG (only available to policyholders in São Paulo and Minas Gerais), Banco Pan and Banco Olé, which belong to the Santander Brasil group.

According to the Brazilian Federation of Banks (Febraban), Banco Master, Banco Daycoval and Facta Financeira will also offer the modality soon.

There are some banks eyeing the offer, such as Caixa Econômica Federal and Bradesco. Itaú Unibanco made it clear that it has no plans to provide this modality. Banco do Brasil has not yet announced whether it will join.

Payroll credit is a loan in which the installments are deducted directly from the individual's payroll or benefit.

Thus, interest rates are lower, as the risk of default is also reduced.

Therefore, interest rates for this type of card are controlled by the INSS. For this modality, the maximum interest rate is 3.06% per month. But if you prefer, the bank can charge lower fees.

However, there are contracts with other institutions where interest rates may be higher, as in the case of Banco BMG, which varies between 3.06% and 4.70%. According to the institute, this interest is only charged when the minimum amount of the invoice is paid.

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