The readjustment of minimum wage announced by President Lula has generated discussions about the distance between the new value and the previous valuation policy. If the policy had been maintained, the minimum wage would reach R$1,410, considering inflation and the variation in the Gross Domestic Product (GDP).
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Impacts and prospects for Brazilian workers
A new bill proposed by the Lula government seeks to make annual increases above inflation permanent. However, this measure generates impacts both on the income of the population and on public coffers. According to specialists' calculations, the current value of BRL 1,320 should be BRL 1,410, showing a difference of 7% in relation to the current floor.
Although this difference is considered “minimal” by some, for workers, the R$90 more in salary is not negligible. This amount could represent the possibility of purchasing a cooking gas cylinder in São Paulo, for example.
The policy of valuing above inflation was abandoned during the Bolsonaro government, which opted to readjust the minimum wage only according to inflation. The last real increase took place in 2019, and since then, the readjustments have only been to keep up with inflation.
Evaluating the inclusion of GDP in the calculation
Economists argue that the way in which the minimum wage adjustment is being proposed is not the best option for Brazilians. Including GDP in the calculation of the national floor can entail additional costs for companies and impact the economy as a whole, throughinflation. Some suggestions point to readjustment based on productivity.
The Lula government proposes to readjust the minimum wage in 2024 based on the accumulated National Consumer Price Index (INPC) and considering GDP growth. The intention is to restore the purchasing power of low-income workers.
