At the end of last year, the National Congress approved the budget plan for this year, 2023. Among the points approved by parliamentarians was the mention that the minimum wage would be raised from R$1,212 to R$1,320. This declaration was even celebrated by various sectors of civil society, but the truth is that this level should not leave the drawing board.
At least this is the initial indication of the new Federal government. According to press reports, allies of the president Luiz Inácio Lula da Silva (PT)He already admitted that it would be impossible to apply this salary increase to about R$1,320 in January. There are concerns that this increase may breach the public spending cap.
According to the investigations of journalist Valdo Cruz, from Globo News, the natural trend is that the minimum wage of R$1,320 has not been paid either in January or in the following months at the beginning of 2023. The government is divided between giving the increase from May only onwards, or not Give no further raises this year.
Last week, the newspaper Folha de São Paulo revealed that Ministry of Finance Receive an alert about the potential risks of raising the minimum wage to R$1,320. According to this alert, the increase could cost R$7.7 billion more than was projected in the text of the budget plan approved last year.
If the government decides to finance this increase from the beginning of the year, it will have to use resources in other areas. Another option is to pay the minimum wage of R$1,320 and run the serious risk of not being able to complete the year’s payments. Thus, the Ministry decided to wait a little longer for the final decision to be made.
What is the current minimum wage?
Even with the budget plan approved at the end of last year, President Lula still has to sign a decree raising the salary to R$1,320 this year. However, he has not yet signed any action in this regard.
Thus, the minimum wage now in effect is R$1,302. This value was set by former President Jair Bolsonaro (PL) in August last year. At that time, this level did not represent a real increase in values.
In any case, the inflation expectation decreased in the months after the introduction, making the R$1,302 that was not a real increase now represented. One way or another, the country will get a real increase in the minimum wage after a three-year hiatus with increases below this limit.
Introduction meeting
The trend is for the definition of this topic to take a few more days to happen. Finance Minister Fernando Haddad He has a trip scheduled to Davos, Switzerland, where he is participating in a World Economic Forum.
Haddad shall only discuss the matter again upon his return from this trip. Meanwhile, Lula wants to settle scores with the central trade unions. He has a meeting with unionists next week to explain specifically that the salary increase to R$1,320 will take time.
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Oliver Ashford is a contributor to Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment and lifestyle. He focuses on delivering clear, balanced reporting that helps readers stay informed about current affairs and developments that matter. With an emphasis on accuracy, relevance and accessibility, Oliver aims to present useful information and engaging stories in a straightforward manner, making complex topics easier for readers to understand and follow.