What is Decree 12,564/2025 and how will it transform payroll-deductible loans in Brazil

Decree No. 12,564/2025, signed on July 24 by President Luiz Inácio Lula da Silva together with the Ministry of Labor and Employment, marks a turning point in the regulation of payroll-deductible loans in Brazil. Published in the Diário Oficial da União (DOU) and effective immediately, the decree establishes new rules aimed at protecting workers' wages and strengthening digital security in credit operations.

What does Decree 12,564/2025 establish?

The regulation implements Article 2-I of Law No. 10,820, setting a maximum cap on payroll deductions and establishing technical and legal requirements for payroll-deductible loan contracts.

Key points include:

• Mandatory facial biometric verification with liveness detection to validate workers' identity.

• Informed and explicit consent for the use of personal data, in line with the LGPD (Brazil's General Data Protection Law).

• Digital contracts and electronic signatures in three modalities:

• Qualified signature with ICP-Brasil certificate.

• Advanced signature with biometric authentication and technical evidence.

• Electronic signature in secure environments with multi-factor authentication.

Who must comply with the new regulation?

Decree 12,564/2025 applies to all entities offering and operating payroll-deductible loans in Brazil, including:

• Public and private banks.

• Credit unions and fintechs authorized by the Central Bank.

• Digital platforms for contract intermediation and formalization.

• Leasing and financing companies.

• Government agencies and state-owned companies responsible for payroll and validation of digital contracts.

These entities will be required to implement facial biometrics with liveness detection, ensure secure digital signatures, record and store workers' consent, and maintain auditable infrastructure in compliance with the Ministry of Labor and Employment's standards.

Facephi's proposal in light of Decree 12,564/2025

In this new context, Facephi offers biometric identity verification solutions that ensure full compliance with the regulation. Our technology enables:

• Biometric onboarding in under 10 seconds, with an inclusive, multilingual experience optimized for mobile devices.

• Modular SDKs and APIs for seamless integration into any platform.

• Certified passive liveness detection, providing frictionless security for users.

• A partner enablement program with co-branding, lead generation, and access to an exclusive portal to maximize results.

An opportunity to drive digital security

Beyond regulatory compliance, the entry into force of Decree 12,564/2025 represents an opportunity to strengthen the protection of digital identity and data in financial operations in Brazil.

The growing digitalization of services and the need to build user trust are driving the adoption of more robust and efficient authentication mechanisms. Preparing in advance will allow institutions to mitigate risks, optimize processes, and establish themselves as leaders in digital security and trust. Acting in time is key to ensuring a smooth transition to the new regulatory framework and to fully harnessing its technological benefits.