US-Brazil Social Security Totalisation Agreement

On 25 June 2018, a decree was authorised by the President of Brazil, Michel Temer, to approve the US-Brazil Social Security Totalisation Agreement. The agreement will come into force from 1 October 2018.

Without a totalisation agreement in place, workers sent on temporary assignment between the U.S. and Brazil fall liable to double contributions (i.e. paying social security contributions in both their home and host countries). This can significantly increase costs for workers and companies managing overseas assignments.

With the new agreement taking effect from this October, employees and their employers will fall under just one country’s social security legislation. Individuals sent on temporary assignment between Brazil and the U.S. may remain within their home country social security scheme, provided the conditions of the agreement are met, which may also reduce costs.  

Under special provisions of the agreement, workers who are already present in the US or Brazil before October this year may also covered under the agreement.

What is a Social Security Totalisation Agreement?

Totalisation agreements are international agreements in the area of social security. They ensure that social insurance periods completed under the social security scheme of one country are taken into account to determine the right to social security benefits (such as pensions) in the other country. Often these agreements allow international workers temporarily assigned to the other country to remain liable for social security contributions to their home country for a limited period of time to avoid double taxation. This is the case for the US-Brazil Social Security Totalisation Agreement.

How Can We Help?

Fragomen’s Social Security team can offer you support in navigating international social security legislation and provide advice on the benefits and implications for your business’s social security programme. Because Fragomen is exclusively dedicated to immigration services and support, we can also help manage social security matters in close connection with your global immigration needs for optimisation of costs, increased efficiencies and speed to ground.

To learn more about how Fragomen can help you, please contact Diana Quintas or Siobhan Owers.