Bolsonaro's proposed Social Security reform bill will keep middle-aged professionals who could otherwise retire in the workforce. It is also bringing a new idea: incentives for companies to hire retirees.
However, specialists say that the proposal will have an unexpected side effect: it will force young people - especially the ones without skills - to take jobs without law-mandated benefits.
The average unemployment rate in Brazil ended 2018 at 11.6%, but among 18 to 24 year-olds, it went over 25%.
âBolsonaro's bill proposes that the minimum age for retirement be 65 for men and 62 for women, plus a minimum contribution period of 20 years. It also provides tax breaks for companies who employ retirees.
According to labor lawyer Luiz Guilherme Migliora, this will cause younger workers to accept jobs under a new employment regulation with more flexible labor rules. This new regulation is still being planned within the government.
Clemente Ganz LÃºcio, technical director of Dieese (Intersindical Department Socioeconomic Studies), reinforces that keeping older people in the workforce is no simple task. "There is a real risk of people reaching 60 years of age with no savings or safety net."