Lula makes a statement and repeats announcements about minimum wage and income tax

President Luiz Inácio Lula da Silva (PT) made a statement on radio and television this Sunday night (30) repeating the announcements that, as of this Monday (1st), the minimum wage will rise from Rs. $1,302 to R$1,320 and the income tax-free range to R$2,640.

With no news, Lula repeated his promise to raise the minimum wage above inflation every year until the end of his term, stating that he will forward a bill to that effect to the National Congress. In addition, he again promised that, until the end of his term, the Income Tax exemption will apply to the range of R$ 5,000.

“It is a small but real increase, above inflation, for the first time after six years”, said the president, referring to the new value of the minimum wage.

In his statement, which lasted about four minutes, Lula stated that “everything has gotten worse in recent years.” “Wages lost purchasing power. Inflation rose. Interest rates soared. Rights conquered over decades were destroyed overnight,” she said.

In his speech, the President of the Republic highlighted that “the profession or place of work does not matter, the important thing is that you are responsible for generating wealth in Brazil”. And he said that restoring achievements lost by workers is a priority for his government.

Full text of Lula’s statement

My friends and my girlfriends,

Tomorrow, May 1st, is the day to honor the working people of Brazil.

You who work in factories, in construction, in banks, in stores or in offices. You app workers. You microentrepreneurs. You, who work in the fields, in schools, in hospitals.

You young people who are taking their first steps into the world of work. You, retirees and pensioners, who, over a lifetime, helped build Brazil with the fruit of your sweat.

No matter the profession or the place of work. The important thing is that you are responsible for generating wealth in Brazil.

Do you remember the achievements you had when we governed Brazil. Record job creation. Minimum wage growing above inflation. Guaranteed labor rights.

Everything has gotten worse in recent years. The job disappeared. Wages have lost purchasing power. Inflation rose. Interest rates skyrocketed. Rights conquered over decades were destroyed overnight.

Few times in history have the Brazilian people been treated with such contempt, and had so little to celebrate.

Fortunately, that bad weather is in the past. Brazil has once again recognized the fundamental role of working people in building Brazil’s future.

Since the first day of this third term you have given me, I have been working to fix and rebuild our country.

Recomposing the gains lost by male and female workers is a priority for our government.

Starting with the appreciation of the minimum wage, which had not seen a real increase for six years, and had been losing purchasing power day after day. But we are already starting to reverse this loss.

Starting tomorrow, the minimum wage will be worth R$ 1,320 reais for active workers, retirees and pensioners. It’s a small but real rise above inflation for the first time in six years.

In the next few days, I will submit a bill to the National Congress so that this achievement will be permanent, and the minimum wage will once again be readjusted every year above inflation, as it happened when we governed Brazil.

And, you can be sure that, by the end of my mandate, it will once again be the great instrument of social transformation that it was in the past, when it grew 74% above inflation.

It was thanks to this that millions of Brazilian men and women came out of extreme poverty and paved the way for a better life.

It must be remembered that the appreciation of the minimum wage is not essential only for those who earn the minimum wage.

With more money in circulation, trade sales increase, industry produces more. The wheel of the economy turns again, and new jobs are created.

I also want to announce another very important measure. We are changing the Income Tax exemption range, which eight years ago was frozen at R$1,903 reais.

From now on, the amount up to R$ 2,640 reais per month will not pay a penny of income tax. And, until the end of my mandate, the exemption will be valid for up to R$ 5 thousand reais per month.

My friends and my girlfriends. There will be no reconstruction of Brazil without the appreciation of workers.

Brazil will grow again with social inclusion and new jobs will be created.

You can be sure that your hard work will be increasingly recognized and rewarded.

And May Day, which has always been a day of struggle, will once again be a day of conquests for working people.

Thank you very much, and happy May Day.