Brazil Sets 2026 Minimum Wage at R$1,621 After Presidential Decree

Overview

• Effective 1 January 2026, the new floor replaces R$1,518 with a R$103 rise (6.79%), with payrolls and indexed benefits paid at the new level starting in early February.
• The adjustment applies INPC inflation of 4.18% over 12 months to November plus 2024 GDP growth, with the real gain limited to 2.5% under the fiscal rules.
• The floor is the reference for formal wages and benefits such as pensions, BPC and unemployment insurance, reaching about 59.9 million people.
• Government estimates indicate each R$1 added to the minimum lifts mandatory spending by roughly R$420 million in 2026, totaling about R$43.2 billion for this increase.
• The finalized amount came in below earlier projections of R$1,627 to R$1,631 because inflation undershot prior estimates.