Annex 1. 1.1
Benefit Formulas in the Pension and Unemployment Insurance Systems
Pensions The proportional Length of Contribution Pension is given by:
pR =
1 0.31* v 0.31* v + R , (1+ 0.05 * (R − 54 )) * LifeTimeWage * 0.7 * min( 1+ 0.70 G(R) 100
where R is the retirement age, v the vesting period, G(R) life expectancy at age R, and LifeTimeWage is the average of all salaries indexed by inflation. The full Length of Contribution Pension is given by:
pR =
0.31* v 0.31* v + R * LifeTimeWage 1+ G(R) 100
The aging pension is:
pR = (0.7 + 0.01* v ) * LifeTimeWage 1.2
Unemployment Insurance
The value of monthly unemployment insurance (UI) benefits varies from R$380 (the Brazilian Minimum Wage) to R$710.97, depending on the average wage computed in the last threemonth period of work. Values are depicted in the table below. Monthly Wage Range
UI Benefit
Up to R$627.29
0.8 * average monthly wage Minimum value = 1 Minimum Wage (R$380.00)
R$627.30 to R$1,045.58
R$501.83 + 0.5 * value exceeding R$627.29 Maximum value = R$710.97
More than R$1,045.58
R$710.97
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