Lula Team Weighs Different Minimum-Wage Index for Workers and Pensioners

Overview

• Members of the federal economic team are privately discussing a rule that would treat minimum-wage valuation for active workers separately from adjustments to INSS-linked pensions and assistance.
• Technical simulators produced scenarios that keep both groups above inflation but preserve the current rule for active workers—allowing up to 2.5% real increase—while applying a lower real-adjustment percentage to inactives.
• Supporters argue the differentiation would shrink the long-term cumulative growth of mandatory previdenciary and assistential outlays and signal fiscal discipline to markets.
• Legal experts warn the plan could face serious constitutional hurdles because changes touch protections described as cláusulas pétreas and any shift would likely require presidential approval and judicial review.
• Analysts caution the measure would be only a partial fix for structural spending pressures, and it could directly affect the purchasing power of many retirees and benefit recipients, so close attention should fall on any formal proposal details and court challenges.