Bolsonaro ends real increase in the minimum wage.
The draft Budget Guidelines Law (PLDO) to be sent by the government to the National Congress will not include a provision for a real increase in the minimum wage; the economic team led by Minister Paulo Guedes advises that the minimum wage should only be adjusted for inflation, using the INPC (National Consumer Price Index) as the index; it is expected that the text will be sent to the Legislature by April.
247 - The draft Budget Guidelines Law (PLDO) to be sent by the government to the National Congress will not include a provision for a real increase in the minimum wage. The economic team led by Minister Paulo Guedes advises that the minimum wage should only be adjusted for inflation, using the INPC (National Consumer Price Index) as the index. It is expected that the text will be sent to the Legislature by April.
A new formula for calculating the minimum wage adjustment may be sent to Congress by December 31st, through a Provisional Measure, but the matter will only be addressed after the processing of the pension reform.
report of Antonio Temóteo According to UOL, "the Budget needs to include a forecast for the minimum wage adjustment, because the minimum wage is a benchmark for the payment of social security, welfare, and labor benefits. However, this figure is only a parameter for calculating government spending and may be changed during the budget debate."
"Today the minimum wage is R$ 998. The formula for calculating the adjustment was established by law starting in 2007. Until 2019, this adjustment took into account the GDP (Gross Domestic Product) result from two years prior plus the inflation of the previous year, measured by the INPC (National Consumer Price Index)."
"During the transition from Michel Temer's (MDB) government to Jair Bolsonaro's (PSL) government, the former Ministry of Finance recommended to Guedes that the minimum wage adjustment policy be revised."