Pejotization can lead to the end of social security, warns secretary

Representatives of the Ministry of Social Security warned, on Monday (6th), that the advance of the so-called Pejotization, which is the hiring of workers as a legal entity (PJ), that is, as a company, would lead to the end of the Social Security model as we know in Brazil.

“Pejotization is much more than a pension reform. It is the end of the Social Security model of Brazil,” said the executive secretary of the Ministry of Social Security, Adroaldo da Cunha, at a public hearing in the Supreme Court (STF).

Conducted by Minister Gilmar Mendes, the rapporteur of the action that suspended all cases on alleged contractual fraud of workers via PJ, the public hearing receives 78 people, including representatives of government, civil society, business sector, unions, among others.

“(Pejotization) will play those who are in the consolidation of labor laws (CLT) out of it. What will remain to society and the state are two ways. Either the state will greatly expand their social security expenses in the coming years and decades, or, which is much more likely to happen, new proposals for social security reform will bring gigantic cuts in this social protection,” he said.

Folha Funding

Adroaldo warned that 73% of social security is funded by the payroll payroll contracted via CLT and that the replacement of 10% of these workers to a PJ regime would bring an annual loss of approximately R $ 47 billion.

The so -called pejotization has been replacing employment contracts via work card (CLT), leading to a reduction in labor obligations by companies, which do not need to pay for social security and FGTS, for example, causing billionaire losses to the INSS. Practice is often interpreted by the Labor Court as fraud.

The director of the INSS General Social Security Department, Eduardo da Silva Pereira, cited the aging of the population as a factor that aggravates the financing of social security. For him, the increase in pejotization will aggravate the situation.

“We already have a marked need for financing and this would only aggravate the process. The process of pejotization undoes the social pact built around Social Security, in which we have tripartite financing, employers, workers and government funding social security. The process of pejotization takes the employer from this process. Who will finance is only the government and the employee,” he said.

New architecture

Experts heard at the STF’s public hearing on Monday, said that to avoid the loss of social security collection, it would be necessary to elaborate a new financing model.

Economist Felipe Salto, former secretary of the São Paulo government farm, understands that pejotization is a path without return and should not change.

“The new relationships in the labor market, the incorporation of new technologies, modernization, they are irreversible. We will no longer be able to go back and imagine an ideal world where everyone is simply hired by CLT,” he said.

For Salto, it will be necessary to think of new forms of collection to support public policies, especially social security.

“(One suggestion is) the introduction of progressivity in the taxation of legal entities, especially the so -called uniprofessionais. A consolidation of the regimes we have today, the MEI, the simple, the uniprofessionals and the CLT, for the benefit of state funding,” said the expert.