To calculate the value of the minimum wage, the government considers factors such as inflation, economic growth and productivity.
OR minimum salary of the Brazilian is expected to increase from May 1st. This is because President Luiz Inácio Lula da Silva (PT) has already promised a new adjustment to be announced in a package of measures in Workers Day.
Currently, the minimum wage is BRL 1.302. The expectation, according to the statements of the president himself, is that the increase is for BRL 1,320 since the beginning of May.
According to the president, the minimum wage will have to new annual adjustment formula which will also take into account the growth of the economy, as well as inflation. The lift should cost approx. BRL 4.3 billion This year.
What is the minimum wage?
The minimum wage is determined by law and covers the entire Brazilian national territory, including rural and urban workers. He is literally the minimum amount that a company can pay its employee.
The minimum wage guarantees, according to the law, that workers are able to satisfy their basic needs: housing, food, education, health, leisure time, clothing, hygiene, transport and social security.
How is the minimum wage calculated?
The minimum wage is reviewed annually preserve purchasing power and ensure the financial survival of workers.
The way value is calculated has changed in recent years. Until 2019, for example, two factors were taken into account: the Gross Domestic Product (GDP) and the inflationaccording to the National Consumer Price Index (INPC), both from the year prior to the readjustment.
As of 2020, however, started to be adjusted only according to inflationwithout taking into account economic growth.
Already this year the formula should change once again. Lula has already announced that he is dissatisfied with the way it is currently done, and intends to go back to the way it was done before the pandemic, also considering the GDP.
When is the minimum wage raised?
The annual minimum wage adjustment is determined by the federal government and generally takes effect on the first day of the year.
However, in exceptional years and for political-economic reasons, there may be more than one readaptation in the same year — usually in the first semester.
Source: Terra
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