Minimum wage and retirement will undergo changes in 2024

The year 2024 begins this Monday (1st) bringing with it a series of economic changes that should come into force. Among the main ones, the new official minimum wage of R$1,412 comes into effect today.

This Monday, the full PIS/Cofins charge on diesel will return. The tax has been zero since 2021.

Those who are about to retire also need to be aware, the Social Security reform established automatic transition rules, which change the granting of benefits each year. In 2024, there are changes that begin to take effect.

In relation to the government’s public accounts, in 2024, the federal government must respect the rules of the fiscal framework, approved by the National Congress in 2023.

Below is a summary of the main changes that will come into effect this year:

Minimum wage

From this Monday (1st), the minimum wage official will be R$ 1,412. The amount, which will be paid from February onwards for the January payroll, is 6.97% higher than the salary of R$1,320, which was in effect from May to December 2023.

Approved in the 2024 General Budget of the Union, the value of R$ 1,412 corresponds to inflation by the National Consumer Price Index (INPC) accumulated in the 12 months ending in November, which totaled 3.85%, plus the 3% growth in Gross Domestic Product (GDP) in 2022. Sent by the government in May, the provisional measure with the new policy of increasing the minimum wage was approved by the Chamber of Deputies and the Senate in August.

According to the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), the minimum wage adjustment will benefit 59.3 million workers and will result in an increase in annual income in the amount of R$69.9 billion. The entity estimates that the government – ​​Union, states and municipalities – will raise R$37.7 billion more due to the increase in consumption linked to the higher minimum wage.Continues after advertising

Full collection of taxes on diesel

This Monday (1st) marks the return of full PIS/Cofins charges on diesel. The tax had been zero since 2021, but the federal government brought forward part of the collection in September this year. From today onwards, the collection will be full again: R$ 0.35 per liter of diesel.

On the 26th, the Minister of Finance, Fernando Haddad, stated that the increase should not increase the price that consumers pay per liter at gas stations. According to him, the increase in the tax burden on diesel will be mitigated by the price reductions already announced by Petrobras (PETR4).

Changes in retirement

A Social Security Reform established four transition rules, two of which provided for modifications at the turn of 2023 to 2024. In the first rule, which establishes a transition schedule for rule 86/96, the score made up of the sum of age and years of contribution rose in January : for 91 points (women) and 101 points (men).

Public servants are subject to the same scoring rule, with the difference that they must be 62 years old and have 35 years of contributions (men), 57 years old and 30 years old (women). For both sexes, it is necessary to have 20 years in public service and five years in office.Continues after advertising

In the second rule, which provides for a lower minimum age for those who have been contributing for a long time, the minimum age to apply for the benefit was increased to 58 and a half years (women) and 63 and a half years (men). The Social Security reform adds six months to the minimum ages each year until they reach 62 years old (women) and 65 years old (men) in 2031. In both cases, the minimum contribution time required is 30 years for women and 35 years for men.

Tax framework

The new fiscal rule that replaces the spending cap limits expenditure growth to 70% of the variation in revenue over the previous 12 months. The new framework combines a spending limit that is more flexible than the spending ceiling with a primary result target (result of public accounts without interest on public debt).

The complementary law has adjustment mechanisms and some flexibility in case of unforeseen events in the economy. The primary outcome targets also follow a band, a range.

Within this 70% range of revenue variation, there will be an upper limit and a floor for expenditure fluctuation. In times of greater economic growth, expenditure cannot grow more than 2.5% per year above inflation. In times of economic contraction, spending cannot grow less than 0.6% per year above inflation.

To prevent non-compliance with the 70% revenue growth route, the new rules introduce punishment mechanisms that will slow down spending if the growth trajectory of these expenses is not met.Continues after advertising

If the primary result falls below the minimum band limit, expenditure growth for the following year falls from 70% to 50% of revenue growth. This change, however, will only be valid from 2025. For 2024, the limit ceiling will be limited to 2.5% of real expenditure growth, but if the increased amount of expenditure calculated in this way is greater than 70% of growth real primary revenue actually realized in 2024, the difference will be debited from the limit for the 2025 financial year.

Card Revolving

Interest on revolving credit card debt and installment payments will be limited to 100% of the debt from January 3rd, the National Monetary Council (CMN) decided late this afternoon. The ceiling was specified in the law that established the Desenrola Program, sanctioned in October.

In addition to making the interest ceiling official, the CMN instituted the portability of the outstanding balance on the credit card bill, an item that was not in the Desenrola law. The debt with the revolving and invoice installments may be transferred to another financial institution that offers better renegotiation conditions.

According to the CMN, portability will come into force on July 1, 2024. The measure also applies to other postpaid payment instruments, types in which resources are deposited to pay debts already incurred.

Tax reform

The regulation of the first phase of tax reformwhich simplifies consumption taxes, was postponed until 2024. Continues after advertising

Several points still need to be regulated, through bills, such as the rate of future taxes; items that will be included in the basic basket, which will be exempt from future taxes; which products and services will be eligible for reduced rates, which products will be charged selective tax, known as the “sin tax”.

*With information from UOL

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