Brazil Confirms 2026 Minimum Wage of R$1,621

Overview

• Adjustment takes effect on January 1, 2026 and appears in February paychecks, with legal rounding taking R$1,620.99 to R$1,621.
• The calculation applied INPC of 4.18% to November and a 2.5% real gain from 2024 GDP growth of 3.4%, as limited by the fiscal framework.
• Government estimates indicate each R$1 increase adds roughly R$420 million to costs, so the R$103 rise implies about R$43.2 billion in extra obligations.
• The confirmed value is below prior projections of R$1,627–R$1,631 after inflation ran weaker than expected.
• The new floor resets benefits and eligibility for roughly 59.9 million people, affecting INSS payments, BPC, unemployment insurance, PIS/Pasep criteria and MEI contributions, and it will be formalized by presidential decree.