The fund collected by the PIS is used to finance the payment of the Salary Allowance and Unemployment Insurance, two important benefits for Brazilian workers.

Who is entitled to PIS

To be entitled to PISThe worker must meet certain requirements:

• • Have been registered with the PIS for at least five years.

• • Have earned, on average, up to two minimum monthly salaries during the base year considered for calculation.

• • Have worked for a company for at least 30 days in the base year in question.

• • Have their data correctly informed by the company in the Annual Social Information Report (RAIS).

How the Salary Allowance Works

O Salary Allowance is one of the main benefits paid by the PIS. It is equivalent to up to one minimum wage, paid annually to workers who meet the above criteria. The amount of the salary allowance is proportional to the time worked in the base year, i.e. those who worked one month receive 1/12 of the minimum wage, those who worked two months receive 2/12, and so on.

Example of Salary Allowance Calculation

If a worker had a minimum wage of R$1,212.00 (reference value in 2022) and worked for six months in the base year, they will receive 6/12 of R$1,212.00, which equals R$606.00.

How to withdraw PIS

The PIS can be done in various ways:

• • ATMFor those who have a Citizen's Card and a registered password.

• • Caixa Econômica Federal branchesPresenting an identification document and PIS number.

• • Account CreditFor those who have an individual account with Caixa Econômica Federal.

Impact of PIS on the Worker's Economy

The PIS plays a significant role in the economy of Brazilian workers. The Salary Allowance, for example, is often used to supplement family income, making it possible to pay off debts, purchase goods or simply provide greater financial security.

In addition, the Unemployment insuranceThe PIS-funded program provides essential support in times of involuntary unemployment, allowing workers to maintain their basic expenses while looking for a new job.

PIS and Corporate Liability

Companies play a crucial role in the PIS granting process. It is their responsibility to correctly inform their employees' data in the RAIS, ensuring that workers receive the benefits to which they are entitled. Failure to comply with this obligation can result in penalties for the company and losses for employees.

Difference between PIS and PASEP

There is often confusion between PIS and PASEP. Although both are social integration programs, they are aimed at different groups of workers:

• • PIS (Social Integration Program): Aimed at private sector workers.

• • PASEP (Public Servant Equity Formation Program): Aimed at civil servants.

Both programs were created with similar objectives, but operate differently and are managed by different institutions. While PIS is administered by Caixa Econômica Federal, PASEP is managed by Banco do Brasil.

PIS updates and news

From time to time, the Brazilian government updates the rules and amounts of the benefits associated with the PIS. It is important that workers are aware of the new regulations to ensure that they are receiving their benefits correctly. Keeping up with the news and regularly checking the payment calendar are recommended practices for all beneficiaries.

Conclusion

O PIS is an essential tool for the well-being of Brazilian workers, offering financial support through the Salary Allowance and Unemployment Insurance. Understanding your rights and how to access them is fundamental to ensuring that you can make the most of the benefits provided by this program.