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Brazil’s 2026 Minimum Wage Takes Effect at R$1,621

The government applies the INPC-plus-GDP formula under a fiscal cap, with formalization by presidential decree pending.

Overview

  • The new floor represents a R$103 increase over R$1,518, a 6.79% adjustment.
  • Workers paid the minimum and benefits tied to it, including BPC and unemployment insurance, will receive the updated amounts starting in early February.
  • The calculation used INPC inflation of 4.18% for the 12 months to November plus a real gain from 2024 GDP growth capped at 2.5%.
  • Each R$1 added to the minimum is estimated to raise 2026 mandatory spending by about R$420 million, implying roughly R$43.2 billion from the R$103 rise.
  • The minimum wage serves as a reference for about 59.9 million Brazilians, spanning employees, retirees, and beneficiaries.