Is the 100% Toll Worth It for You?

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

The 100% toll is one of the transition rules in Brazil’s Social Security Reform that lets you retire earlier, but it requires double the time you were missing to meet the requirements in 2019. Whether this rule is worth it in your case depends on factors such as your age, your contribution time, and the benefit amount you want.

What the 100% Toll Is

The 100% toll (pedágio, an additional contribution period you must work as the “price” of early retirement) was created by Constitutional Amendment 103/2019 as an alternative for people who were close to retiring when the Reform took effect. Unlike other transition rules, this one requires you to complete double the time you were missing to reach the minimum contribution time on the date of the Reform (November 13, 2019).

In practice, it works like this: if you were 2 years short of 30 years of contribution (women) or 35 years (men), you will need to work 4 more years in total, made up of the original 2 years plus 2 years of toll. This rule also requires a minimum age of 57 for women and 60 for men.

The big advantage is that the benefit is calculated using the average of 100% of your contribution salaries, without the reduction factor that applies under other rules. This means your retirement benefit can be significantly higher.

The Rule’s Requirements in Detail

To qualify for the 100% toll, you must meet all of the following requirements at the same time:

• Minimum age of 57 (women) or 60 (men)
• Minimum contribution time of 30 years (women) or 35 years (men)
• An additional period equal to double the time you were missing on 11/13/2019

All requirements must be met simultaneously. It is not enough to reach the required contribution time if you have not yet reached the minimum age, and vice versa.

When the 100% Toll Pays Off

We analyze a range of scenarios and identify situations in which this rule is especially advantageous. The 100% toll tends to pay off when the insured person has higher contribution salaries throughout their career, because using the full average avoids significant losses in the benefit amount.

The 100% toll can secure a retirement benefit equal to the full salary average, without the reduction factor applied under other transition rules.

Here is how the 100% toll compares with the other available options:

We advise insured people who made high contributions during their working life to look closely at this option. The difference in the monthly amount can be hundreds of reais more compared with the other rules.

When the 100% Toll Does Not Pay Off

In some situations, other transition rules may be more advantageous. If your contributions were lower, or you paid in at the minimum wage for long periods, using the full average may not make much difference compared with the other rules.

Another important point: if you were missing a lot of contribution time in November 2019, the doubled toll can make the waiting period excessively long. In those cases, the 50% toll rule or progressive-age retirement may be better alternatives.

How to Calculate Your Toll

To find out exactly how much time you are missing, follow these steps:

1. Check the CNIS (Brazil’s National Social Information Registry) to see how much contribution time you had as of 11/13/2019
2. Calculate how much you were missing to reach 30 years (women) or 35 years (men)
3. Multiply the missing time by two to find the total toll
4. Add the original missing time to the toll to find the total period required
5. Check whether you will have the required minimum age when you complete the total time

We recommend requesting your social security statement through the Meu INSS app (the app of INSS, Brazil’s National Social Security Institute) or in person at an INSS office, to make sure all of your contribution periods are correctly recorded.

Why Retirement Planning Matters

Choosing the right transition rule can mean a difference of thousands of reais over the years you receive your benefit. Retirement planning lets you simulate each scenario, taking into account every variable in your specific case.

We advise insured people to seek specialized professional guidance before filing for retirement. A full review of your contribution history, the applicable rules, and the calculations under each option helps you avoid regrets and secures the best possible benefit.

Frequently Asked Questions

Who qualifies for the 100% toll?

Any insured person who was already contributing to INSS before the Social Security Reform (11/13/2019) can choose the 100% toll, as long as they meet the minimum age of 57 (women) or 60 (men) and the required contribution time plus the toll.

Does the 100% toll guarantee a full retirement benefit?

Yes, that is the main advantage of the rule. The calculation uses 100% of the average of all your contribution salaries, without the reduction coefficient found in other transition rules. However, the amount is still capped at the INSS ceiling.

Can I give up the 100% toll and choose another rule?

Yes. Until your application is approved, you can ask INSS to review it under a different transition rule. We recommend simulating all the options before filing, to make sure you choose the most advantageous one.

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