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31m ago

Brazil Confirms 2026 Minimum Wage of R$1,621

The figure reflects IBGE’s INPC with the real gain limited by the fiscal framework, prompting budget revisions before the January rollout.

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Overview

  • The increase of R$103 (6.79%) from R$1,518 takes effect in January 2026 and appears in February paychecks.
  • The formula applies the 12‑month INPC to November (4.18%) and GDP from two years prior, with 2024 growth of 3.4% constrained to a 2.5% real rise.
  • The calculated R$1,620.99 was rounded to R$1,621 as required by law.
  • Government estimates indicate the R$103 adjustment will add about R$43.2 billion to mandatory expenditures in 2026.
  • The confirmed value is lower than earlier PLDO/LDO and Finance Ministry projections, and the minimum wage is a reference for roughly 59.9 million people.