New minimum wage of BRL 1,320 comes into force
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The worker who receives the minimum wage had the second readjustment of the year. The monthly remuneration went from R$ 1,302 to R$ 1,320 yesterday, May 1st. The provisional measure with the increase was published in an extra edition of the Official Gazette. The value of
R$ 1,320 was originally foreseen in the 2023 General Budget of the Union. However, it was postponed by four months because the minimum wage in this amount would not allow paying the benefits of the National Institute of Social Security (INSS) throughout the year.
The increase to R$ 1,320 was under discussion because the R$ 6.8 billion allocated by the Constitutional Amendment of the Transition proved to be insufficient to pay for the increase in INSS benefits linked to the minimum wage. This is because the strong concession of retirements and pensions in the second half of last year created a greater impact than estimated for INSS expenses this year.
According to the Ministry of Finance, in addition to the R$ 6.8 billion, the government would need
R$ 7.7 billion to finance the minimum increase to R$ 1,320 still in January. Initially, the economic team wanted to postpone the readjustment to 2024, but the government managed to find resources for the new increase in the minimum.
The money came from the re-registration of Bolsa Família, which eliminated 1.2 million beneficiaries in an irregular situation in April alone.
“The rapporteur (of the budget), after the project was forwarded to the federal government, reinforced the Ministry of Social Security’s budget by R$ 6.8 billion. But this resource was consumed by the INSS queue (reduction of the queue of requests). From the beginning of the electoral process, the queue began to walk”, said the Minister of Finance, Fernando Haddad, in January.
After the two readjustments this year, one in January and the other in May, the government seeks to discuss a policy of permanent appreciation of the minimum wage as of 2024. On Friday, the Minister of Labor and Employment, Luiz Marinho, informed that the government will soon submit a bill that resumes the formula that was in effect from 2012 to 2019.
Under the previous policy, the minimum wage was corrected for the previous year’s inflation, the National Consumer Price Index (INPC) and the growth of the Gross Domestic Product (GDP) two years earlier. If the GDP shrinks, there will only be replacement by inflation.
The Ministry of Finance defended another formula, which would include the variation in GDP per capita and would have a smaller impact on the budget.
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