Tebet: Lula will give a real increase in the minimum wage in 2024 – 04/17/2023 – Market

Minister Simone Tebet (Planning) said this Monday (17) that President Luiz Inácio Lula da Silva (PT) will fulfill his campaign promise and give a real increase in the minimum wage in 2024.

“There is not the slightest chance that the president will not give a real increase in the minimum wage,” said Tebet. “The increase will be real, how much will depend on the approval of the framework, the increase in revenues on the one hand and the cut in expenses on the other”, he added.

The PLDO (Budget Guidelines Bill) of 2024, sent to the National Congress last Friday (14), provides that the minimum wage will rise to R$ 1,389 in 2024, with no real increase. But the value is not definitive.

The amount foreseen in the PLDO considers only the correction of the value foreseen for December 2023 by the INPC (National Consumer Price Index), focused on the inflation felt by lower-income Brazilians, which is projected by the government at 5.16%.

“Eventual new readjustment rules, which provide for real increases in the minimum wage, will be opportunely incorporated into the fiscal scenario when the annual budget law is drawn up”, the ministry said in a note.

The value of the minimum wage is used as a basis for calculating pension payments, assistance benefits and unemployment insurance.

According to the PLDO, an increase of BRL 374.8 million is generated in central government expenses – the National Treasury, Social Security and the Central Bank – for each additional BRL 1 in the minimum wage, which also leads to an increase of BRL 6 .3 million in social security revenue. This results in a net reduction of BRL 368.5 million in the primary result of the central government in 2024.

In the document sent to Congress, the government also estimates that the minimum wage will rise to R$1,435 in 2025 and R$1,481 in 2026.