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Brazil has updated its progressive INSS (social security) contribution brackets effective January 1, 2026, following Interministerial Ordinance MPS/MF No. 13/2026. The new brackets range from 7.5% (up to BRL 1,621.00) to 14% (BRL 4,354.28 to BRL 8,475.55), replacing the 2025 thresholds. The family allowance (salário-família) increases to BRL 67.54 per eligible child, with the eligibility threshold rising to BRL 1,980.38 per month. These changes align with the new national minimum wage and inflation adjustments, requiring immediate payroll system updates for the January 2026 cycle.
Brazil has updated its progressive INSS (social security) contribution brackets effective January 1, 2026, following Interministerial Ordinance MPS/MF No. 13/2026. The new brackets range from 7.5% (up to BRL 1,621.00) to 14% (BRL 4,354.28 to BRL 8,475.55), replacing the 2025 thresholds. The family allowance (salário-família) increases to BRL 67.54 per eligible child, with the eligibility threshold rising to BRL 1,980.38 per month.
Who is affected
All employers in Brazil who withhold INSS contributions from employee wages are affected. This includes companies employing salaried workers, domestic workers, and casual workers. The family allowance changes apply to employers whose employees earn below the new monthly threshold of BRL 1,980.38 and have eligible children.
What's changing
The INSS contribution calculation remains progressive, with rates applied to specific salary bands. The 2026 brackets reflect adjustments aligned with the new national minimum wage and inflation.
| Rate | 2026 Gross Monthly Income | 2025 Gross Monthly Income |
|---|---|---|
| 7.5% | Up to BRL 1,621.00 | Up to BRL 1,518.00 |
| 9% | BRL 1,621.01 to BRL 2,902.84 | BRL 1,518.01 to BRL 2,793.88 |
| 12% | BRL 2,902.85 to BRL 4,354.27 | BRL 2,793.89 to BRL 4,190.83 |
| 14% | BRL 4,354.28 to BRL 8,475.55 | BRL 4,190.84 to BRL 8,157.41 |
The family allowance benefit increases from BRL 62.04 to BRL 67.54 per eligible child. The eligibility threshold rises from BRL 1,819.26 to BRL 1,980.38 per month. The calculation base for eligibility excludes the 13th salary and the constitutional vacation bonus. The benefit is prorated based on days worked in admission and dismissal months.
What NEO partners and clients should do
- Update payroll systems to apply the new INSS brackets and family allowance parameters by January 1, 2026
- Recalculate employee withholdings for the January 2026 payroll cycle using the updated thresholds
- Verify that family allowance eligibility is assessed against the new BRL 1,980.38 monthly threshold
- Ensure the updated family allowance amount of BRL 67.54 per eligible child is applied retroactively to remuneration paid starting January 1, 2026
