Brazil Caps Seguro-Defeso at R$7.325 Billion Under Fiscal Framework, Moves Oversight to Labor Ministry

Overview

• Published on Nov. 5, the provisional measure sets a 2025 ceiling of R$7.325 billion for the fishermen’s benefit and ties future growth to the fiscal rules that allow limited real increases of up to 2.5% a year.
• The measure transfers management from the INSS to the Ministry of Labor and Employment, with the INSS responsible for defeso periods through Oct. 31 and the Labor Ministry handling periods starting Nov. 1.
• Eligibility is tightened with required biometric registration, CadÚnico enrollment, residence in covered or adjacent municipalities, and proof of commercial activity via sales documents for at least six of the prior 12 months, while most overlapping continuous benefits remain barred.
• Transparency and access are expanded as the Labor Ministry must publish monthly beneficiary lists and accept applications and tracking through the Carteira de Trabalho Digital app and the Emprega Brasil portal.
• The government acted after lawmakers removed an earlier cap, adding roughly R$900 million in room versus the prior 2025 allocation of R$6.425 billion, and the finance minister said available resources are sufficient to cover beneficiaries.