Overview
- The Chamber of Deputies approved PLP 77/2026 by 391 to 33, sending the fiscal adjustment to the president for sanction.
- The text lifts the paternity benefit out of 2026 election-year budget bans on new mandatory costs and out of the fiscal rule that caps social security spending growth near 2.5% a year.
- Under the payment setup, employers pay fathers during leave and later recover the outlay by offsetting their social security payroll contributions.
- The package also authorizes tax credits for purchases of recyclable materials, exempts some resale steps in that chain, and preserves incentives tied to a free-trade area in Amapá.
- Congress had already voted in early March to expand leave from five to 20 days on a gradual schedule starting in 2027, with rollout conditioned on identified funding and fiscal targets.