In a recent announcement, the government of São Paulo confirmed an increase in the minimum wage paid in the state.
Since the last June 1st, all São Paulo workers began to receive at least R$1,550, an amount that exceeds the national wage floor, currently set at R$1,320.
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Bigger than inflation
The impact of the new salary floor in São Paulo is even more remarkable when we consider the inflation. According to the Brazilian Institute of Geography and Statistics (IBGE), inflation last year was 4.65%.
As the increase in the minimum wage in SP was 20.7% for the lowest salary bracket, and 18.7% for the highest bracket, the real gain not only does it exist, but it was very significant for workers, surpassing the inflationary average by four times current.
It is noteworthy that the new wage floor not only directly affects workers who receive the minimum wage, but also brings implications for several professional categories that do not have floors stipulated by federal law or conventions collective.
How is the national minimum wage measured?
The methodology for calculating the minimum wage has undergone some transformations in recent years. Prior to 2020, two indices were used in the formula:
- The value of the Gross Domestic Product (GDP);
- Inflation measured by the National Consumer Price Index (INPC).
These two indices considered data referring to the year prior to the readjustment, in this case, 2022. However, from 2020, inflation was incorporated into the metrics for evaluating economic growth.
However, it seems that this formula is about to be revised, since President Luiz Inácio Lula da Silva has shown dissatisfaction with the current system.
With the implementation of the recently announced increase, São Paulo is at the forefront of the fight for wage parity and better quality of life for its workers.
