Brazilian Congress Approves Decree Related To Health Benefits

(Petrobras, 2.Sep.2021) — The Brazilian Congress approved yesterday the Legislative Decree that suspends the effects of CGPAR Resolution No. 23, a rule that was in effect since 26 January 2018 and established, among other issues, guidelines and parameters for the federal state-owned companies’ funding of employees’ health care benefits.

The health benefit for Petrobras employees and the respective costing regime are based on conditions negotiated and agreed upon via Collective Bargaining Agreement (ACT) in effect until 31 August 2022.

In the negotiation of the ACT 2020-2022, the proportion of the health plan’s funding was changed from 70% of the expenses covered by the company and 30% by the beneficiaries to:

As of 1 January 2021: 60% share of the expenses covered by the company and 40% by the participants;

ii. As of 1 January 2022: 50% share of the expenses covered by the company and 50% by the participants, if there were no change or revocation of CGPAR Resolution No. 23 as a result of acts or piece of legislation regularly issued by the executive or legislative powers.

With the Legislative Decree approved yesterday, the 60% / 40% ratio will be maintained and will remain for the duration of the current Collective Bargaining Agreement or until a new agreement is reached between the parties.

The company will evaluate the impacts of the alteration on the plan costing and its effects on the financial statements.

Facts deemed material on the subject will be timely disclosed to the market.