Brazil. Pension Reform Will Make Young People Take Jobs With Less Benefits
Bill encourages hiring retirees and extends the retirement age, making older people stay in the workforce
Bolsonaro’s proposed Social Security reform bill will keep middle-aged professionals who could otherwise retire in the workforce. It is also bringing a new idea: incentives for companies to hire retirees.
However, specialists say that the proposal will have an unexpected side effect: it will force young people – especially the ones without skills – to take jobs without law-mandated benefits.
The average unemployment rate in Brazil ended 2018 at 11.6%, but among 18 to 24 year-olds, it went over 25%.
Bolsonaro’s bill proposes that the minimum age for retirement be 65 for men and 62 for women, plus a minimum contribution period of 20 years. It also provides tax breaks for companies who employ retirees.
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