The government expects a 4.66% adjustment to INSS (National Institute of Social Security) pensions for amounts above the minimum wage, according to estimates used in the PLOA (Annual Budget Draft). This percentage corresponds to the federally estimated inflation rate for 2025, as measured by the INPC (National Consumer Price Index).
The final correction index that will effectively apply to these benefits will be officially announced on January 9, when the IBGE (Brazilian Institute of Geography and Statistics) releases the annual INPC results.
The social security minimum and equivalent benefits will be subject to the same adjustments given to the minimum wage in 2026, which could rise from the current 1,518 reais to 1,631 reais, according to estimates from the same budget project. The final minimum wage is officially determined by executive order.
According to the MPO (Ministry of Planning and Budget), to calculate the benefits above the lower bound, PLOA took into account the INPC projections of the SPE (Secretariat for Economic Policy) macroeconomic parameters grid of July 4. The updated grid was released in September, maintaining the index’s forecast at 4.66%.
The INPC is also used as the basis for recalibrating the INSS cap, which is the maximum social security benefit. The INSS cap is also the maximum amount paid based on higher-paid Social Security contribution payments. INSS cap increases from current R$ 8,157.41 Real 8,537.55 In 2026, considering the estimated adjustment of 4.66%.
According to INSS, 12.1 million beneficiaries currently receive benefits above the national minimum. Meanwhile, an additional 28.3 million retirees and pensioners receive up to minimum wage.
The INSS payment schedule for 2026 has not yet been announced. Traditionally, however, policyholders earning below the minimum wage begin paying their adjustment amounts on the last business day of January, and payments for policyholders earning above the minimum wage typically begin on the first business day of February.
What about minimum wage?
The national minimum wage is adjusted annually and is currently R$1,518. According to data used in the PLOA sent to the National Assembly on August 29, the government estimates that it could rise to R$1,631 in 2026.. This value represents an increase of 7.45%. This forecast took into account an estimated inflation rate of 4.78%.
The floor adjustment takes into account the INPC inflation rate for the 12 months ending in November of the previous year, in addition to the GDP change from two years ago, which is limited to 2.5% by the government’s fiscal adjustment rules.
In the coming years, the government, in its projections submitted to PLOA, expects the minimum wage to reach R$1,725 in 2027, R$1,823 in 2028 and R$1,908 in 2029.
Despite the forecast, the exact value depends on the inflation and country growth actually recorded by IBGE.
The minimum wage is the minimum amount that INSS can pay as retirement benefits, pensions, sick pay, and BPC (continuing payment benefits). your readjustment It is the standard for social security and social benefits and acts as a measure of the set of mandatory expenses of the executive branch, thus putting pressure on government spending.
Whenever an adjustment is made, people who receive retirement benefits, sick pay, death benefits and BPC included in the minimum wage amount will also start receiving the new minimum wage.
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