Special Retirement: Understand What It Is, How It Works, and Its Costs for Companies

Special retirement, provided for under Brazilian social security legislation, remains one of the key mechanisms of protection for professionals exposed to unhealthy or hazardous conditions in the workplace. This benefit ensures a reduction in the required contribution period for individuals engaged in activities that pose risks to health or physical integrity, such as workers in the chemical industry, civil construction, mining, energy sector, and healthcare.

“Special retirement is a social security benefit granted to insured individuals under the National Social Security Institute (INSS) who can prove that they have worked under risky conditions or have been exposed to harmful agents to health, in a habitual and permanent manner. Its main feature is allowing these workers to retire earlier, precisely as compensation for the damage their activities may cause to their health over time,” explains Gabriela Mayumi, associate attorney at Xerfan Advocacia S/S.

Under current rules, the contribution period varies depending on the degree of exposure: 15, 20, or 25 years of activity under special conditions, always with a minimum qualifying period of 180 months. After the Social Security Reform (Constitutional Amendment No. 103/2019), a minimum retirement age was also established. For those already in the labor market before the reform, the so-called transition rule by points applies (66, 76, or 86 points, depending on the length of exposure).

To qualify for the benefit, workers must provide evidence, through technical reports and the Social Security Professional Profile (PPP), of actual exposure to physical, chemical, or biological harmful agents.

Financial Impact on Companies

While special retirement represents a social achievement for workers, it also entails significant costs for companies. Employers with workers in hazardous or unhealthy activities are required to pay additional contributions ranging from 1% to 3% of payroll, which may increase depending on the level of occupational risk.

In addition, companies face extra expenses such as the Special Retirement Financing Contribution (FAE), an additional social security contribution levied directly on employers with workers exposed to harmful agents or hazardous activities.

“In practice, it functions as an extra levy on payroll, with rates varying between 6%, 9%, and 12%, depending on the contribution period required for the employee’s special retirement. This means that, in addition to the ordinary social security contributions, employers must bear this additional burden, which can represent a considerable financial impact in sectors that employ a large number of workers in hazardous environments, such as mining, construction, healthcare, and fuel transportation,” notes the attorney.

Failure to collect the FAE may result in fines, retroactive charges, and even freezing of company funds. “On the other hand, companies that invest in prevention and risk reduction can, in many cases, neutralize exposure and avoid the obligation to pay this contribution,” adds Gabriela Mayumi.

Legal and Technical Precautions

Reports on unhealthy and hazardous conditions are fundamental documents for both labor and social security management within companies. They serve to certify the actual conditions of the workplace, and any deficiencies may result in tax assessments, labor lawsuits, and additional costs.

To avoid problems, certain legal and technical precautions are indispensable:

• Keep the Technical Report on Environmental Working Conditions (LTCAT) updated, always signed by a safety engineer or occupational physician.

• Periodically review the Risk Management Program (PGR) and the Occupational Health Medical Control Program (PCMSO) to monitor evolving workplace conditions.

• Ensure consistency between labor and social security documents — such as PPRA/PGR and PPP/LTCAT — since inconsistencies are easily detected by the INSS and the Judiciary.

• Document the delivery and proper use of Personal Protective Equipment (PPE) and Collective Protective Equipment (CPE), as failure to provide proof may lead the INSS to disregard risk neutralization and demand the additional contribution.

“These reports should not be treated as mere bureaucracy. They are instruments of defense for companies, as they demonstrate concern for worker health and significantly reduce the risk of future liabilities,” highlights the attorney from Xerfan Advocacia S/S.

Failure to maintain updated health and safety controls exposes companies to labor liabilities, such as lawsuits filed by employees claiming additional pay for unhealthy or hazardous conditions, including retroactive claims. In the social security and tax fields, the absence of records can lead to assessments by the Federal Revenue Service and the INSS, with charges of owed amounts plus interest and fines. Furthermore, employees themselves may file claims with the INSS, resulting in retroactive collection of SAT/RAT contributions on payroll.

“This is not merely a bureaucratic matter, but one of legal and financial security. Effective management of occupational risks protects both workers and the business itself,” stresses the specialist from Xerfan Advocacia S/S.

Best Practices

Balancing worker health with the company’s financial sustainability requires robust prevention policies. Investing in workplace safety goes beyond cost: it reduces future liabilities and may even lower social security contributions.

To achieve this, it is essential to adopt best practices, such as implementing prevention programs to reduce exposure to harmful agents (adequate ventilation, machine enclosures, and task rotation); providing effective PPE and monitoring correct use with documented records; maintaining regular medical monitoring and recording all information in the eSocial system; and periodically reviewing SAT/RAT rates, using the Accident Prevention Factor (FAP) as a strategy to reduce costs.

“Perhaps most importantly, companies should foster a culture of safety, involving both managers and workers in risk prevention. When everyone understands that protecting health is a priority, the outcome is twofold: fewer leaves of absence and occupational illnesses for employees, and at the same time, greater financial and legal stability for the company,” concludes the attorney from Xerfan Advocacia S/S.