INSS for Self-Employed and Individual Taxpayers: What Rate to Pay?

CLT workers have the security (and obligation) of an INSS deduction directly from their payroll. But what about those who are freelance designers, app drivers, day laborers or self-employed lawyers?

The responsibility for contributing to Social Security and guaranteeing sickness benefit, maternity pay and retirement falls entirely on the shoulders of the professional himself. There are three ways to collect the INSS, generating the Social Security Guide (GPS): the 5%, the 11% and the 20%. The wrong choice could delay your retirement or reduce your earnings in the future.

1. Optional Low Income Plan (5%)

Who can: Exclusive for members of low-income families registered in the Federal Government's CadÚnico who dedicate themselves exclusively to domestic work in their own residence (without their own income from work). What guarantees: Retirement only by age (receiving only 1 minimum wage), in addition to benefits such as sickness benefit.

2. Simplified Plan (11%)

Who can: Any self-employed taxpayer (individual) who works on their own, but does not provide services to companies (legal entities). What you pay: You always pay 11% tax on the value of 1 (one) current minimum wage. What it guarantees: Guarantees the right to sickness benefits, but retires only based on age and always limited to the amount of 1 minimum wage. The contribution time does not count if you try to add it later to higher ceilings. (MEIs already pay automatically embedded in the DAS at a rate of 5%, following similar benefit rules).

3. Normal Plan (20%)

Who can: Self-employed professionals who wish to receive pensions above the minimum wage or who provide services to legal entities (where the company itself collects the 20%). What you pay: You choose the amount you want to contribute (between the minimum wage and the maximum INSS ceiling) and pay 20% of that amount per month. What it guarantees: It is the only modality that allows retirement based on contribution time and guarantees the payment of robust pensions that follow the declared average salaries, and can reach the official INSS ceiling.

Pension Planning

Choosing between paying $150 per month (11%) or investing heavily by paying 20% over the ceiling requires strategy. Check the exact values ​​updated by our tool and analyze the impact on our INSS Calculator for Self-Employed Workers.