ESS Paper Series No. 11
Non-contributory pensions in Brazil: Their impact on poverty reduction
Despite labour market informality, Brazil has reached a remarkable benefit coverage among the elderly over the last decades. This coverage extension is, to a large extent, due to two basic pension programmes financed by tax revenues and some social security contributions. The rural scheme, with nearly seven million beneficiaries, comprises old-age, widow and invalidity pensions, as well as maternity and labour accident benefits, all equivalent to the official minimum wage level. People are entitled to their benefits, if they belong to the rural family economy and if they can document length-of-service in agriculture, fisheries, or similar activity instead of length-ofcontribution, thus breaking away from the Bismarckian contributive link.