Government measure increases workers' wages by R$ 15.60

The payroll for May will already have effects for workers who earn more than two minimum wages. What happens is that the government approved the increase in the Income Tax exemption range for Individuals (IRPF). The change is contained in the provisional measure published at the end of last month.

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What changes with the new law for workers?

According to the National Association of Tax Auditors of the Federal Revenue of Brazil (Unafisco), some people will have an increase in payment. This applies to registered workers earning more than BRL 2,640. They will have R$15.60 more in net earnings from now on.

The change in the tax rule has a direct impact on the amounts that will be deducted from workers' salaries. For this reason, there will be an increase in the monthly earnings of many Brazilians duly registered by the CLT (Workers law consolidation).

In practice, those who will still receive their salary at the end of May should already observe the readjustment on the sheet. The value is low, since it represents a common breakfast, with bread on the plate and black coffee brewed in many cafeterias in Brazil, for example.

Who will be exempt from now on?

What happens is that people who earn more than two minimum wages, that is, R$ 2,640 will not have to pay the IRPF. There will be no deduction at source, nor in the annual income statement of each one.

It is important to clarify that the current change in the rules does not affect the declaration referring to last year. This means that workers who have already declared their Income Tax or who will still do so in May, must continue the process in the same way.

The new law will only have a real impact from next year, 2024. However, workers' wages will already be affected by the impact, at least for those earning up to two minimum wages or a little more than that.