Provisional Measure 1.378/2026: R$ 547 Million in Credit to Reimburse Improper INSS Deductions

This page is a translation of the original Portuguese text, provided for convenience. It deals with Brazilian law. If there is any discrepancy, the Portuguese version prevails. Read the original in Portuguese

Brazil’s National Congress is reviewing Provisional Measure 1.378/2026, which opens R$ 547 million in extraordinary credit for the Ministry of Social Security to reimburse beneficiaries of the INSS (Brazil’s National Social Security Institute) who had improper deductions taken from their benefits. The proposal presumes that insured persons acted in good faith, waives preliminary steps, and allows the money to be returned directly through the administrative process.

What Provisional Measure 1.378/2026 Establishes

Issued by the Office of the President and published in Brazil’s Official Gazette (Diário Oficial da União) on July 21, 2026, Provisional Measure 1.378/2026 authorizes the opening of extraordinary credit in the amount of R$ 547.000.000,00. The entire amount goes to the INSS, a budget unit under the Ministry of Social Security, for a specific and clearly defined purpose.

The stated goal of the measure is to reimburse beneficiaries of Brazil’s General Social Security Regime who had improper deductions taken from their benefits. In other words, this is an appropriation meant to repair losses that have already been recognized. It does not create a new benefit or expand ongoing spending.

Extraordinary credit is the constitutional tool reserved for urgent and unforeseeable expenses, such as those arising from decisions that impose an immediate obligation on the government. By choosing this route, the Executive Branch signals that the payment could not wait for the ordinary budget process, given its reparatory nature and the existence of an order that must be carried out.

The constitutional basis for this type of credit is Article 167, paragraph 3, of the Federal Constitution, which allows extraordinary credit to be opened only to cover unforeseeable and urgent expenses, together with Article 62, which authorizes the use of a provisional measure in those situations. Read together, the two provisions explain why the Executive Branch chose this instrument rather than an ordinary bill subject to the regular legislative procedure, whose timeline would be incompatible with a payment obligation that has already been recognized.

Administrative Reimbursement and the Presumption of Good Faith

The central feature of the measure is the refund model it adopts. Under the proposal, beneficiaries who had amounts improperly deducted will be reimbursed through the administrative process, with no preliminary steps required and with a presumption of good faith in favor of the insured person.

In practice, benefit holders do not first have to prove that they were victims of the deduction in order to be entitled to a refund. The presumption of good faith reverses the logic that usually burdens the insured person. It shifts to the government the duty to carry out the return of money that was taken without legitimate authorization.

This design reduces litigation and tends to speed up the return of the money to those who were harmed. Retirees and pensioners, who make up most of the affected group, often struggle to gather old documents and to prove charges they never authorized. Waiving formal requirements therefore has a real impact on how effective the reparation will be.

Administrative reimbursement also eases the burden on the courts. When the government itself takes charge of the refund, it avoids a flood of individual lawsuits over the same issue, which would bring high costs and delays that do not fit the urgency of the situation.

The stated goal of the measure is to reimburse beneficiaries of Brazil’s General Social Security Regime who had improper deductions taken from their benefits.

Origin in the Federal Supreme Court and in Operação Sem Desconto (“Operation No Deductions”)

The opening of this credit is directly tied to the fulfillment of obligations imposed by a decision of the Federal Supreme Court. According to the proposal, the court broadened the scope of a judicial settlement approved in Claim of Noncompliance with a Fundamental Precept (ADPF) No. 1.236/DF, which concerns irregularities uncovered by Operação Sem Desconto.

The investigation examined deductions taken from social security benefits without the holders’ valid consent, a practice that affected a large number of retirees and pensioners. By expanding the settlement, the Court widened the group of people entitled to a refund, which required the Executive Branch to set aside enough funds to honor the reparation.

This chain of events is what gives rise to the urgency recognized in the provisional measure. The court decision creates an obligation to pay, and extraordinary credit is the means by which the budget can absorb that expense without compromising the Ministry of Social Security’s other programs.

Passage Through Congress and Deadlines

Referred to the Joint Committee on Budget Plans, Public Budgets and Oversight, the measure is following the procedure specific to provisional measures on credit. The deadline for submitting amendments ended on August 10, 2026, and three amendments were filed with the committee during that period.

The Federal Senate’s Office of Budget, Oversight and Control Consulting attached a technical note to support the review of the proposal’s budgetary and financial adequacy. The document helps lawmakers check whether the credit is consistent with the fiscal rules in force before they vote.

The legislative schedule calls for the measure to be decided between July 21 and September 18, 2026. Beginning September 4, 2026, the matter goes into urgency status and locks the legislative agenda, a mechanism that pressures both Houses to finish voting. As of now, the proposal is waiting for a rapporteur to be appointed in the committee.

If the measure is not taken up within the constitutional deadline, it loses its effect, which reinforces the expectation of a quick review. Conversion into law, in turn, secures the credit and gives greater legal certainty to the flow of payments to the harmed beneficiaries.

Impact on Retirees and Pensioners

For insured persons, the most important effect of the measure is the creation of a dedicated budget source for returning the money. Without set-aside funds, any reimbursement order risks having no financial backing, which in practice would delay payment indefinitely for people who have already suffered the loss.

Choosing the administrative route also changes the experience of those who were harmed. Instead of hiring a lawyer, filing a lawsuit, and waiting years for a judgment, beneficiaries can rely on a procedure run by the government itself, guided by the presumption of good faith and by the waiver of bureaucratic requirements.

It is also worth noting that administrative reimbursement does not take away an insured person’s right to go to court if they find that the amount is wrong or that payment is being unjustifiably delayed. A specific budget appropriation works as an additional safeguard, but it is not a substitute for monitoring each individual situation, especially where deductions continued for several months and added up to significant sums over time.

Even so, the public still needs to stay alert. You should follow the official channels of the INSS and the Ministry of Social Security to confirm amounts, deadlines, and how payment will be made. You should also keep statements and receipts that can help you identify unfamiliar deductions taken from your benefit.

Frequently Asked Questions

Who is entitled to reimbursement under Provisional Measure 1.378/2026?

Beneficiaries of Brazil’s General Social Security Regime who had improper deductions taken from their benefits are entitled to reimbursement, a situation uncovered in Operação Sem Desconto. The measure covers the group reached by the expansion of the judicial settlement recognized by the Federal Supreme Court, with a presumption of good faith in favor of the insured person.

Do I need to file a lawsuit to receive the money?

No. The proposal provides for reimbursement through the administrative process, with no preliminary steps required. The refund is made on the government’s own initiative, which as a rule means no individual lawsuit is needed. Each beneficiary should follow the official channels to check amounts and how payment will be made.

What was Operação Sem Desconto?

It was an investigation into irregular deductions taken from social security benefits without the holders’ legitimate authorization. The investigation uncovered charges that improperly reduced the amounts received by retirees and pensioners. These findings led to the judicial settlement and to the need for the reparation that the provisional measure seeks to fund.

As informações deste artigo são de caráter informativo e não substituem consulta jurídica individualizada. Cada caso possui particularidades que exigem análise específica.