1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Social Security Reform in Brazil

Achievements and Remaining Challenges

This paper reviews the main elements of social security reform in Brazil since 1998 and discusses areas where further policy action is yet to be taken to ensure the sustainability of the social-security system over time. Outlays on pensions paid to private-sector workers have risen as a result of population ageing and the increase in the value of the minimum wage in real terms, to which the minimum pension is linked. Some features of existing social protection programmes, including means-tested old-age and disability-related benefits, reduce the incentives facing workers to seek social security coverage. At the same time, an expansion of the base of contributions to social security has been constrained by widespread labour informality. Further reform will therefore need to focus on options for containing the rise in social security spending while tackling labour informality so as to broaden the base of contributions.

English

Keywords: social security reform, social protection, Brazil
JEL: H55: Public Economics / National Government Expenditures and Related Policies / Social Security and Public Pensions; J32: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions; I38: Health, Education, and Welfare / Welfare, Well-Being, and Poverty / Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error