Lula's campaign considers curbing on independent contractors in potential new term

BRASILIA, Aug 24 (Reuters) - ‌The Brazilian ​government ​is evaluating mechanisms to curb the use of workers hired as ‌legal entities rather than employees in a ⁠potential reelection of President Luiz Inacio Lula da ‌Silva, Finance Minister Dario ‌Durigan said on Monday.

• The plan could minimize Brazil's pension deficit, and provide higher ​social security protection for workers, Durigan told Broadcast, the news service of local ⁠newspaper Estadao.

• "A company that has 80% of its workforce employed ​as independent contractors, you may eventually require that firm to make a ​social security contribution," he said.

• ‌Workers hired as legal entities often earn higher gross pay, while ⁠firms typically benefit from lower labor costs because they are not required to pay payroll ⁠taxes, severance-fund contributions or other benefits.

• Durigan was introduced ​by Broadcast as a representative of Lula's presidential campaign, who will seek reelection in the upcoming October ‌vote.

• Durigan also advocated for a corporate taxation review, citing discussions ‌over payroll taxes and the interest on ⁠equity, a type ‌of shareholder remuneration.

(Reporting ​by Bernardo Caram in Brasilia; Writing by Andre Romani, Editing by Iñigo ‌Alexander)

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