What are the statutory pension benefits in Brazil?

In Brazil, statutory pension benefits are part of the social security system, which receives contributions from both employees and employers based on the employee's salary. The main features of Brazil's statutory pension benefits include:

• Fundo de Garantia do Tempo e Serviço (FGTS): Employers contribute a percentage of the employee's monthly salary to this public retirement fund. The funds are deposited into a special account with the Federal Savings Bank, and employees can access these funds in certain situations such as retirement, termination without cause, serious illness, or when purchasing a home. FGTS income is tax-exempt. In cases of termination without cause, the employer must pay a percentage of the fund's accumulated sum. If termination occurs through a Mutual Termination Agreement (MTA), the penalty is reduced.

• Retirement Age and Contributions: The statutory retirement age in Brazil is 65 for men and 60 for women. To receive full retirement benefits, male employees need to have contributed to the social security program for at least 35 years, while female employees must have contributed for at least 30 years.

These elements ensure that workers in Brazil access essential retirement and unemployment benefits through a well-structured social security system.