The beginning of social security in Brazil: an analysis of the antecedents and foundations of the Eloy Chaves Law (1923)

Abstract

We analyze the Eloy Chaves Law, approved in 1923, a landmark for social security in Brazil. The first objective is to examine the project's evaluation in Congress. The second is to analyze the progressivity of the law. The third is to study the implementation of the old-age and survivors fund (CAP) of the Companhia Paulista de Estradas de Ferro (CPEF). The main findings are: (i) the law was approved despite its imperfections; (ii) it served the interests of the elite and a small group of workers; (iii) the existence of one CAP per company is similar to a closed pension plan; (iv) there was a compulsory allocation of resources to public debt; (v) the old-age calculation rule didn’t meet the objective of progressivity; (vi) CPEF amortized part of its external debt with resources from its CAP; (vii) in CPEF the contributory burden was greater for passengers than for the company.