Supreme Federal Court removes case with estimated impact on INSS of R$419 billion from agenda

The Federal Supreme Court (STF) removed from the agenda a case that assesses whether food assistance paid in cash and on a regular basis has a salary nature and, therefore, is part of the worker's remuneration that serves as the basis for calculating the National Institute of Social Security (INSS) discount.

The case has the highest value among lawsuits against government agencies and foundations, estimated at R$419.4 billion. The case was scheduled to be heard by the justices in a virtual plenary session between August 22nd and 29th. No new date has been set for the matter.

The issue comes from the understanding of the National Uniformization Panel (TNU) of the Federal Court, that, in some situations, the nature of the benefit is salary, which would allow requests for review of retirements with the INSS.

According to the TNU decision, until November 10, 2017, food assistance paid in cash and regularly, or through food vouchers, vouchers or equivalent, are considered salary and may be included in the calculation of retirement benefits.

Starting the day after the decision, only food assistance payments made in cash would be considered wages and, therefore, could be included in the calculation of social security benefits. This date takes into account the effectiveness of the labor reform.