INSS Contributions for Self-Employed Workers: Rates and Codes

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

Self-employed workers and independent professionals can contribute to the INSS (Brazil’s National Social Security Institute) at different rates and under different plans, securing access to retirement and other social security benefits.

Who Counts as an Individual Contributor

The individual contributor (contribuinte individual) is a mandatory INSS insured category that covers self-employed workers, independent professionals, business owners, company partners, and anyone who carries out an economic activity on their own account. The rules are set out in Law 8.212/1991 and Decree 3.048/1999, with changes introduced by the Social Security Reform (Constitutional Amendment (EC) 103/2019) and by Complementary Law 123/2006 for the MEI (Brazil’s individual microentrepreneur category).

Unlike an employee with a formal work card, whose employer makes the social security payments, the individual contributor is responsible for making their own monthly payment through the Social Security Payment Slip (GPS). You can pay at lottery outlets, banks, through online banking, or through the Meu INSS app, and the GPS is generated on the Federal Revenue Service website.

Your choice among the 20%, 11%, and 5% rates directly affects the amount of your future retirement benefit and the benefits available to you as an insured person.

Independent professionals such as lawyers, physicians, dentists, engineers, accountants, and architects who work on their own account are classified as individual contributors. The obligation to contribute arises as soon as you carry out paid activity, whether or not you have registered with the INSS.

Rates and Payment Codes

Self-employed workers have three contribution options, each with specific GPS codes:

• Standard Plan (20%): a rate applied to your declared monthly income, between the minimum wage and the INSS ceiling. Code 1007 (individual contributor) or 1406 (voluntary insured person). It entitles you to all social security benefits, including retirement based on contribution time, and the benefit is calculated from the average of your actual contributions.
• Simplified Plan (11%): a flat rate applied to the current minimum wage. Code 1163 (individual contributor) or 1473 (voluntary insured person). It entitles you to age-based retirement in the amount of one minimum wage. It does not allow retirement based on contribution time or any benefit above the minimum wage floor.
• Low-Income Plan (5%): available only to homemakers from low-income families registered in the CadÚnico (Brazil’s Single Registry for social programs) and to the MEI. Code 1929 (homemaker) or payment through the DAS for the MEI. The rights and limitations are the same as under the Simplified Plan.

The MEI and Social Security Contributions

The Individual Microentrepreneur (MEI) contributes to the INSS at a rate of 5% of the minimum wage, included in the monthly DAS payment (the Simples Nacional Collection Document). This contribution gives the MEI the following benefits: age-based retirement, sickness benefit, maternity pay, imprisonment assistance, and survivor’s pension for dependents.

If the MEI wants to qualify for retirement based on contribution time, or for a retirement benefit above the minimum wage, the MEI must supplement the contribution with an additional 15% of the minimum wage, using the GPS with code 1910, for a total rate of 20%. This supplement can be paid retroactively for periods that were paid only through the DAS.

How to Choose the Best Contribution Plan

The right plan depends on your social security goals. If you want retirement based on contribution time, or a benefit above one minimum wage, you must choose the 20% plan. If you only want basic coverage (age-based retirement at the minimum amount and protection in case of illness or accident), you can choose the 11% Simplified Plan and enjoy significant monthly savings.

You can switch between plans at any time, without INSS authorization. If you have contributed under the Simplified Plan (11%) and want to move up to 20%, you can do so retroactively by paying the difference plus interest and inflation adjustment. To build a sound social security plan, the best approach is to simulate the scenarios under each rate and see which one gives you the best long-term cost-benefit.

Deadlines and Consequences of Late Payment

A self-employed worker’s contribution is due on the 15th of the month following the reference month. Late payment is possible, but late-payment interest applies, calculated at the accumulated SELIC rate (Brazil’s benchmark interest rate). If the delay exceeds five years, you may need to prove that you carried out paid activity during the period for the INSS to accept the retroactive contributions, by presenting documents such as contracts, invoices, and income tax returns.

Keeping your contributions up to date is essential to preserve your insured status and to avoid losing access to benefits such as sickness benefit and maternity pay. The grace period for the individual contributor is 12 months after the last contribution, and it can be extended to 24 months if you have more than 120 contributions without losing insured status.

Frequently Asked Questions

Does a self-employed worker who provides services to a company need to pay the GPS?

No. When an individual contributor provides services to a legal entity, the contracting company is responsible for the social security payment: it withholds 11% of the compensation and remits it to the INSS. You should keep your payment receipts (RPA, the receipt for independent contractors) as proof and check your CNIS (National Social Information Registry) on Meu INSS to confirm that the company actually remitted the amounts.

Can I contribute to the INSS even if I am not working?

Yes. If you do not carry out paid activity, you can contribute as a voluntary insured person, with the same rate options (20%, 11%, or 5% for low-income individuals). Students over 16, unemployed people, homemakers, and others without income of their own can maintain social security coverage and keep accruing contribution time through this category.

How do I know whether my contributions are being recorded correctly?

You should regularly check your contribution statement (CNIS) through the Meu INSS app or website. Every contribution you have paid should appear with the correct amount and the corresponding reference month. If there is a discrepancy or a missing contribution, you can request a correction directly through Meu INSS, by phone at 135, or in person at an INSS office.

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