Keeping your health plan after dismissal in Brazil

An employee dismissed without cause who paid part of the company health plan premium may keep it, with the same coverage, for 1/3 of the time they contributed, with a minimum of 6 and maximum of 24 months, paying the full cost (Law 9,656/1998, art. 30). A retiree who contributed for 10 years or more may keep the plan indefinitely (art. 31).

Quick summary

• Who is entitled: those dismissed without cause or retirees who paid part of the premium.
• Does not count as contribution: paying only co-payments for appointments and tests.
• Dismissed employees: 1/3 of the contribution time, 6 to 24 months.
• Retirees: 10 or more years of contributions, indefinitely; less than that, 1 year for each year of contributions.
• Deadline to opt in: 30 days after the employer's notice.

How it works

1. On dismissal, the employer must state the right to keep the plan in writing.
2. The former employee has 30 days to say whether they want to continue.
3. They start paying the employer's share plus their own, that is, the full premium.
4. Enrolled dependents can stay on the plan.
5. The right ends if the former employee is hired in a new job with a health plan.

When there is no right

• Dismissal for cause or resignation.
• A plan paid entirely by the employer, without employee contributions.
• Contributions only through co-payments or deductibles.

Frequently asked questions

I resigned. Can I keep the plan?

Not under art. 30 of Law 9,656. The right is for those dismissed without cause or retired.

How much will I pay to keep the plan?

The full premium, adding your share and the share the employer used to pay.

Do people on INSS leave lose the plan?

No. TST Precedent 440 guarantees the plan during leave for work-related sickness benefit or disability retirement.

Read more in this series

• Severance pay
• Disability retirement
• Unpaid leave
• Index: complete guide to labor rights

Topic: this guide is part of Dismissal and termination, with all the guides on the subject.