What are the statutory pension benefits? What do they cover?
The Fundo de Garantia do Tempo e Serviço (FGTS) is a monthly employer contribution that goes to a public retirement fund. This is paid out to employees upon retirement. However, employees can also use this money in other determined incidents, like being dismissed with unjust cause, being dismissed through a mutual agreement, in case of a natural catastrophe, or while in the process of buying a house.
What pension benefits do most employers offer?
As the maximum benefit to be paid out upon retirement by the social system is relatively low, employers commonly provide employees with additional pension benefits.
Velocity Global can currently only provide an allowance for pension benefits. The typical range is 5% to 10% of your supported employee’s base compensation and this must be updated each time the base salary is updated.
It is also very common for employees to have their own private pension in addition to the mandatory government pension. Sometimes the employee is offered to have a private pension plan outside Brazil, but Velocity Global does not participate in this negotiation.
Can Velocity Global make direct contributions into a supported employee’s private pension?
We cannot facilitate direct contributions into your supported employee’s private pension. We can, however, offer an allowance.