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2h ago

Lula Calls Brazil’s New Minimum Wage Too Low, Urges Policy to Lift the Floor

The president says the legally indexed wage fails the law’s promise of basic rights, pressing for increases that respect fiscal limits.

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Lula defende nova política de aumento do salário mínimo

Overview

  • The national minimum wage stands at R$ 1,621 from January 1, 2026, a 6.79% rise from R$ 1,518 based on the INPC and GDP rule.
  • About 35 million Brazilians receive up to one minimum wage, underscoring the scale of any change for workers, retirees, and BPC beneficiaries.
  • Current law ties adjustments to 12‑month INPC inflation and GDP growth from two years prior, with real gains capped by the fiscal framework at 0.6% to 2.5%.
  • Dieese estimates the 2026 floor will inject R$ 81.7 billion into the economy through income, consumption, and tax effects.
  • Lula delivered the remarks at Casa da Moeda during the 90th‑anniversary event, attended by ministers and the Central Bank president.