Brazil and Portugal Put New Minimum Wages Into Effect on Jan. 1

Overview

• Brazil’s national minimum rises to R$1,621, a 6.79% (R$103) increase from R$1,518, using INPC inflation plus a capped real‑GDP component under the fiscal framework.
• Workers and beneficiaries in Brazil will see the updated amount in payrolls and transfers starting in early February, including INSS and BPC payments.
• Government estimates indicate each R$1 added to the minimum costs about R$420 million in 2026, implying roughly R$43.2 billion from the R$103 increase, while Dieese projects a R$81.7 billion boost to the economy.
• Portugal’s minimum wage moves from €870 to €920, as published in the Diário da República, reflecting the tripartite path of €50 annual increases toward €1,020 by 2028 and a stated goal of €1,100 by 2029.
• The Portuguese decree warns of significant impacts on multi‑year public contracts indexed to the minimum, with potential risks to the economic‑financial balance and service continuity.