Brazil Projects Minimum Wage at R$1,741 for 2027

Overview

• Finance Minister Dario Durigan confirmed the government will include a projected R$1,741 minimum wage in the 2027 budget bill the administration will send to Congress by August 31.
• The R$1,741 projection is R$120 higher than the current R$1,621, a 7.4% nominal rise that the government says preserves a modest real gain for workers.
• By law the final 2027 minimum will be set in December using the INPC inflation index through November plus the statutory real‑gain rule capped at 2.5%, so the number can still change.
• Budget office simulations based on PLDO parameters estimate the R$120 increase would add roughly R$49–49.6 billion in gross primary spending because many pensions and social payments are indexed to the floor.
• The government ruled out removing indexation, so pensions, the BPC, abono and unemployment minima would rise with the floor, a choice that sharpens the trade‑off between boosting incomes and containing mandatory spending growth.