As stated by Esteves Colnago, Special Secretary for Treasury and Budget at the Economy Ministry, the new forecast for the National Consumer Price Index (INPC) posted a new high, from 8.4% to 9.1%.
INPC is the indicator used to calculate inflation levels in a country, and is the basis for the annual minimum wage adjustment by the government. If the expected increase is confirmed and there is no change in the account, the minimum wage will jump from R$1,100 to R$1. 1200 in 2022.
Increase reach benefits and INSS
In August, the federal government sent the budget for 2022, predicting that the minimum wage will reach R$1,169 next year, however, higher inflation should cause wages to rise higher than initially expected.
It should be noted that the minimum wage adjustment is not only related to the correction of the workers’ floor, but is also used as a basis for payment of various programs such as unemployment insurance and PIS / Pasep salary bonus.
In addition, the minimum wage adjustment also affects the adjustment of benefits paid by the National Institute of Social Security (INSS), as the legislation specifies that no social security benefit can be paid in an amount less than the national minimum and, therefore, an adjustment of the salary will also lead to an adjustment INSS Advantages.
It will be the biggest readjustment since 2016
Between 2011 and 2019, the minimum wage was not only corrected by the INPC but also increased based on GDP (Gross Domestic Product) so that Brazilians could increase their purchasing power.
However, since President Bolsonaro’s administration, this practice has changed. Thus, the correction of the minimum wage has begun based on inflation indicators only, and against inflationary indicators only, it will have the largest adjustment since 2016.
Check out the minimum wage adjustment since 2016:
- 2016 minimum wage: R$880 (adjustment of 11.6%);
- 2017 minimum wage: adjusted R$937 (6.48%);
- Minimum salary for 2018: R$ 954 (1.8% adjustment);
- Minimum salary for 2019: R$998 (4.6% adjustment);
- Minimum salary for 2020: R$1,045 (4.7% adjustment);
- Minimum salary for 2021: R$1,100 (5.2% adjustment);
- Expected minimum salary for 2022: R$1,200 (9.1% adjustment).
Increase the minimum wage without real profit
The readjustment of the minimum wage does not mean a real gain for the workers, because the adjustment depends on inflation, the correction will only benefit so that the Brazilians do not lose their purchasing power.
Thus, the purchasing power of all Brazilians will remain the same and it will not be possible to buy anything else, due to the effect of inflation on the prices of products and services, thus counteracting the purchasing power of Brazilians over time.
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