6×1: We need to think about systems that protect autonomous people, says professor

After the approval of the PEC (Proposed Amendment to the Constitution) that puts an end to the 6×1 scale in the Chamber of Deputies, sociologist and retired USP professor José Pastore assessed that Brazil needs to create new protection mechanisms for self-employed workers. In an interview with WW, Pastore highlighted that the phenomenon of "pejotização" - migration of workers to the legal entity regime - will not be contained solely by the new legislation.

"Pejotization": an ongoing phenomenon
For Pastore, the PEC will not be enough to stop "pejotization". He pointed out two main factors that drive this movement: the excess of charges on formal work - which reach 102% of the salary for a regular hire - and the desire on the part of workers to act with more freedom.

"Work is heavily taxed in Brazil," he said. Furthermore, the professor warned that the social security contribution as a voluntary or individual freelancer is expensive, corresponding to 20% of income, which discourages formalization.

According to CNN's journalism director in Brasília, Daniel Rittner, the impact of changes to working hours could be even more severe for small businesses. "The latest studies I've seen indicate that 58% of Brazilian companies have up to 5 employees", he stated, highlighting that these businesses have much less room for maneuver to accommodate changes in scale and working hours.

German model as a reference
The sociologist cited an ongoing experience in Germany as an example to be considered by Brazil. In the German model, a self-employed worker can be hired as a freelancer as long as they prove they are affiliated with a public or private retirement or welfare system.

The social security contribution is divided into three parts: the worker himself pays 50% of the total amount, the contractor contributes another part and the government complements it. "He is protected and the government is protected because it has Social Security resources that are coming in", he explained.

The system also provides flexibility in periods in which the worker does not have an active contract. During this interval, he can temporarily reduce his contribution, with a proportional impact on future benefits.

When resuming a new contract, the worker can pay off outstanding amounts and restore the benefit. "As a professional career lasts 35, 40 years, there is time to make adjustments", pondered Pastore.

Need for new protection systems
Pastore argued that the creation of new types of protection for self-employed people is essential to reduce both informality and the so-called "illegal PJ". "We need to think about creating new systems to protect the self-employed and to protect the State," he stated. According to him, without this structural change, many workers will continue without any social security contributions or social protection.

The professor also commented on the 2017 labor reform, highlighting the principle that what is negotiated prevails over what is legislated in 15 specific rights. He refuted the idea that the reform would have revoked rights, using lunch time as an example: under the CLT, it is 60 minutes, but the reform allows the employee and employer to negotiate a reduction to 30 minutes, if the worker prefers to leave earlier.

"Nothing was revoked", he stated. For Pastore, any setback to this rule would represent great harm to Brazilian labor legislation.

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Source: CNN