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Brazil’s Lower House Passes Bill Defining Forced Retirement at 75 for State Firms

The move seeks to keep scarce experts on critical projects under strict time limits.

Overview

  • The Chamber of Deputies, which voted unanimously Thursday, approved PL 2,391/26 to regulate compulsory retirement for employees of public companies and mixed-capital firms and sent the text to the Senate.
  • The bill guarantees payments at separation, including final salary balance, accrued and proportional vacation, proportional 13th pay and withdrawal of FGTS savings.
  • Employees in teaching and technical‑scientific roles in science, technology, health and education may work past 75 with annual reviews for up to five years, and retirees can be rehired for research and innovation without an employment contract.
  • Workers who reach 75 without the minimum INSS contribution may remain on the job until they complete the required time for a pension.
  • A separate Supreme Court case ended in a tie and is suspended until a new justice is appointed, leaving unresolved whether the rule applies immediately and which severance rights are owed.