Adjustment of the minimum wage will impact municipal coffers by R$ 4.33 billion

A survey by the National Confederation of Municipalities (CNM) indicates that the minimum wage adjustment will impact municipal coffers by R$4.33 billion. The adjustment was confirmed this Wednesday (27) by the Lula (PT) government. From January 1, 2024, the minimum wage will increase from R$1,320 to R$1,412.

The increase complies with what was determined by Law 14,663/23, which states that the salary must be readjusted based on the previous year’s inflation, measured by the National Consumer Price Index (INPC), and the real growth of the Gross Domestic Product ( GDP) of two previous years.

The new value includes inflation in 12 months (until November) of 3.85% and an additional 3% (real gain) equivalent to GDP expansion in 2022. The adjustment was included in the Budget Guidelines Bill (PLDO) and approved by Congress on December 19th.

For the president of the CNM, Paulo Ziulkoski, the new minimum foreseen in the 2024 PLDO will further worsen the fiscal financial crisis faced by states and municipalities.

According to the CNM, the minimum wage adjustments, between 2013 and 2023, increased municipal spending by R$38.6 billion. With labor charges, the impact reaches almost R$54 billion.

“In addition to the minimum, other increases in expenses occur without the city council’s approval. Decisions approved in other spheres of government have had an impact on city hall coffers and worsened the fiscal situation,” said Ziulkoski.

According to the entity, city halls employ more than 6 million people, 2.3 million of whom receive up to one and a half salaries. The CNM warns that the adjustment will mainly impact small municipalities.

The states of Minas Gerais, Bahia and Ceará have the largest number of municipal employees who receive up to 1.5 minimum wages. The sum of employees from the three states corresponds to a third of the total. The states with the lowest concentration of municipal employees who receive up to 1.5 salaries are Acre, Amapá and Rondônia.