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5h ago

Lula Calls Brazil’s New R$1,621 Minimum Wage Too Low, Urges Increase

Speaking at a 90th‑anniversary event in Rio, he argued the legally set floor of R$1,621 still fails the law’s original promise to guarantee basic rights.

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Overview

  • The 2026 minimum wage took effect on January 1 at R$1,621, a R$103 rise that represents a 6.79% nominal increase from R$1,518.
  • The figure results from the statutory formula combining 12‑month INPC inflation of 4.18% and two‑year GDP growth of 3.4%, producing R$1,620.99 rounded to R$1,621.
  • Brazil’s fiscal framework limits real gains above inflation to 0.6%–2.5%, which curbs larger adjustments under the rule.
  • Lula said the floor is the principal income for informal and domestic workers as well as many retirees and BPC beneficiaries, and he pressed for efforts to raise it.
  • Labor research group Dieese estimates the new level will inject about R$81.7 billion into the economy, and 2022 census data indicate roughly 35 million workers earn up to one minimum wage.