Learn about what the minimum wage is and what the current amount is.

Although it's a reality for virtually every Brazilian, few actually know what the minimum wage is. The minimum remuneration stipulated for every Brazilian with a formal job—that is, under the CLT (Consolidation of Labor Laws)—must be respected and guaranteed by every company.

There are several specific aspects and details about this right, and understanding them all can make your professional life much more informed, and will also be fundamental in claiming your rights if necessary.

Understand what minimum wage is.

The minimum wage is a right of every employed worker under the Consolidation of Labor Laws, or CLT. As the name makes clear, it is a minimum remuneration that every employee must receive from the company, under penalty of illegality on the part of the employer.

Receiving less than the minimum wage is not only illegal but can even result in criminal proceedings, where the employee is entitled to fair compensation for not receiving what was due to them during their time of service.

One important fact about the minimum wage is that its value is updated every year to reflect the purchasing power of all citizens. Among other relevant aspects, its base is generally calculated for workers who work approximately 44 hours per week.

In other words, those who work less than that may receive less than a minimum wage in practice, but never less than the proportional amount.

Another situation associated with salaries lower than the minimum wage is when the hired professional is a minor apprentice, but here the rule is similar to the previous one, where the salary is proportional. It is worth remembering that workers in the condition of interns are not legally required to receive a salary — although this is often offered by the company.

What is the current value of the minimum wage?

As mentioned, the minimum wage is updated annually, currently standing at R$1.412,00. This is the minimum amount that companies must pay to all their employees without exception. If you want to know more, we've included this article with more details. details about the current value of the minimum wage!

Compared to the previous value of R$1.320,00, the current salary has increased by approximately 6,97%. Ideally, the minimum wage should continue to increase over the years.

Another important factor is that the company is by no means obligated to pay only this remuneration. Any worker should be aware that they can and should seek salary opportunities within their company that exceed the minimum wage.

How is the minimum wage adjusted?

Traditionally, salary adjustments are based on the inflation rate calculated by the National Consumer Price Index, or INPC. This is the measure used as the basis for the annual increase in the minimum wage.

This is because it is, in itself, an index that shows the overall state of consumption in the country; after all, inflation takes into account the price of food, consumer goods, and basic necessities—everything a worker needs to live.

The minimum wage, in addition to directly affecting workers, is also important for the nation's economic benchmark. According to the Inter-Union Department of Statistics and Socioeconomic Studies, more than 20 million people are affected by the increase in the minimum wage. Furthermore, it is expected that the new remuneration and its increase will also be important for social security rights and various other benefits.

Learn more about the history of the minimum wage around the world.

In a strict analysis of the concept, the minimum wage is believed to have originated in New Zealand and Australia in the 19th century, where many labor laws also emerged. There, a minimum wage floor was established that companies were required to offer their employees, under penalty of fines and sanctions.

However, it is possible to identify even older, albeit less direct, origins that may justify the minimum wage. In medieval Europe, King Edward III of England is said to have created a maximum wage, a ceiling on the amount that workers charged their clients. From laws of this kind, the concept of price—and minimum wage—was born.

The idea was to combat "inflation" that had taken hold throughout Europe due to the Black Death, where prices naturally increased. Another important point about what a minimum wage is and its popularization, especially in a post-capitalist world, was its adoption by the United States in 1938 during the Roosevelt administration. Since then, the minimum wage has become a reality in most democratic countries.

And what about the history of the minimum wage in Brazil?

In Brazil, the minimum wage was established by Getúlio Vargas, who was heavily inspired by 20th-century European labor laws. More specifically, it was decree no. 399 of 1938 that regulated and instituted the payment of this benefit to all Brazilian workers who were formally employed.

An interesting detail about the minimum wage at the time was that Brazil, which was divided into regions—22, where 20 were our states and the other two were the capital and Acre—had a different minimum wage for each of them. The wages were divided this way to reflect the economic differences of each region and to be more fair to the realities of each era.

It was not common for the minimum wage to be adjusted annually; even with periodic updates, it was still insufficient to keep pace with inflation. It was only in 1968 that this adjustment became annual, as it remains to this day. It's worth remembering that during certain periods of high inflation, the wage was updated monthly.

Understanding what the minimum wage is means understanding one of the most basic rights of workers, as well as understanding the history of Brazil itself. This important benefit should be understood as part of what it means to be a Brazilian worker. Did you like the article? Share it with your friends!