08/18/2024 – 2:30 PM
Even if they are not in the formal job market, students aged 16 and over can also contribute to Social Security, through contributions as self-employed or individual workers.
In this case, the student will be classified as an optional insured person, who is a person who does not engage in paid work, but who voluntarily makes contributions to the INSS (National Institute of Social Security).
When paying into social security, the student not only begins to count their contribution period but also begins to have some beneficiary rights, in addition to retirement, such as maternity pay, disability benefit and survivor’s pension.
How to do it
Interested students must first register with the INSS to generate a Nit/Pis/Pasep number. Namely:
- Access the My INSS;
- Click on “Register with INSS”;
- Click on “Citizen”;
- Click on “Registration”, then on “Affiliate”;
- Read the text that appears on the screen and proceed following the instructions.
Starting to contribute
To make the contribution, the student must access a GPS (Social Security Guide), which can be purchased in physical form, as a booklet, sold at lottery shops and stationery stores, or digitally, at INSS website or app.
On the website, do the following:
- Go to the Passwordless Services section
- Select Issue Payment Guide (GPS);
- Choose your category (self-employed), enter your NIT/PIS/Pasep and select ‘I’m not a robot’. Confirm, check your data and confirm again;
- Enter the month and year in competence, and the monthly remuneration in Contribution Salary (the amount cannot be less than the current minimum wage). Select the code and payment date. Confirm;
- Select the skills for payment and then click on Generate GPS. A document will be generated for printing to make the payment.
The payment is due by the 15th of the month following the month in which the contribution was made. If there is no banking activity on the due date, the deadline will be extended to the next business day.
Contribution value
The amount to be paid as a contribution can be one of three options:
- 20% on the amount you define, respecting the minimum (minimum wage) and maximum (social security ceiling) values;
- 11% on the minimum wage;
- 5% of the minimum wage (when belonging to a low-income family). In this case, the student or guardian must be previously registered in the Federal Government’s Single Registry (CadÚnico) and have a family income of up to two minimum wages. To be considered valid, the CadÚnico must be updated every two years.
It is worth it?
Experts consulted by the website This Is Money highlight that one of the benefits for students is that they can already start counting their contribution period to the INSS. Currently, to apply for retirement through Social Security, a minimum contribution period of 35 years for men and 30 years for women is required, with a minimum age of 65 years for men and 62 years for women.
Educator and financial planner Virginia Prestes also points to the inclusive profile of Social Security.
“I think it’s interesting for young people to start making this contribution because it encourages greater knowledge of personal finances. The INSS can reach people with lower incomes, a public that, in general, private pension plans don’t reach, a social class that doesn’t have access to investments and insurance,” he says.
By contributing, young people also have social security rights such as maternity pay, sickness benefit and disability or death pension (for their legal heirs).
“I see it as a way to count on the benefits that insurance could provide. It ends up being similar to an investment or insurance.”
Celia Badari, a financial educator, says that there is no way to say which option – private or social – would be more advantageous, as it will depend on each person’s situation. However, she says that social security can be complementary to private pension plans.
“Private pension plans have the advantage that everything you contribute, and the sooner you start accumulating that wealth, belongs to the person who accumulated it. In social pension plans, the resources belong to the entire system. Another advantage is the lower tax burden, since you can choose the tax regime later on and transform it into income or manage that accumulated wealth,” he explains.
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