Brazil Sets 2026 Minimum Wage at R$1,621 Under Capped Formula

Overview

• The Ministry of Planning and Budget confirmed the new floor at R$1,621, a R$103 increase equal to a 6.79% adjustment.
• The change applies to January 2026 payrolls and will be reflected in payments made in February.
• The formula uses INPC over 12 months to November (4.18%) and a real gain from 2024 GDP growth capped at 2.5%, producing R$1,620.99 rounded to R$1,621.
• The figure is below earlier projections of roughly R$1,627–R$1,631, prompting budget recalculations after inflation finished lower than expected and the cap limited the real increase.
• Each R$1 added costs about R$420 million in 2026, implying roughly R$43.2 billion more in mandatory outlays and adjustments to INSS, BPC, unemployment insurance, PIS/Pasep, CadÚnico thresholds, and MEI contributions that affect tens of millions of beneficiaries.