January 29, 2023

The new ideal minimum wage takes all Brazilians by surprise

According to official surveys, the minimum wage that would be ideal for meeting all the needs of a worker is R$6,647.63. This means that it is 5.5 times more compared to the amount in effect in December 2022, which is R$1,212.00.

upload less pay Expenses that are counted as basic expenses include, for example: housing, food, health, education, hygiene, clothing, transportation, social security, and entertainment. All this for a family of four, two kids and two adults.

January minimum wage x basic basket

According to Dieese (Inter-Confederation Department of Statistics and Socio-Economic Studies), the value of the basic basket in January, quoted as the average cost of the basic food group for a Brazilian family, is R$802.36.

Compared to the current minimum wage of R$1,302, food alone covers a basic basket half and half. In other words, the new minimum wage gives Brazilians the ability to buy 1.6 essential baskets this month, even while making real profits.

Even if the scenario is more favorable than in 2022, this is still the lowest average between 2008 and 2021, according to the National Basic Food Basket Survey, which is conducted in 17 of the country’s capitals.

Basic basket and a half

There is a list, since 1938, that identifies essential foods for family survival. In practice, it consists of 13 basic items and is regulated by decree.

Part of this list:

  1. Meat;
  2. Milk;
  3. beans;
  4. rice;
  5. flour;
  6. potato;
  7. vegetables;
  8. Bread;
  9. coffee;
  10. the fruit;
  11. sugar;
  12. oil; And
  13. ghee.

As mentioned, in 2022 the general minimum wage closed at 1.53 basic basket. Now, it’s worth 1.62 in January. Even with real gains, the national minimum does not exceed the average relative to the staple food of the Brazilian people, being still below the level reached until 2021.

After all, when will Lula’s salary of R$1,320 be released?

There are still many debates about the value of the new minimum wage for 2023. Although the President of the Republic, Luiz Inacio Lula da Silva (Workers’ Party), promised during his election campaign a national minimum of R$1,320, his economic team has indicated that the bonus It should remain at R$1,302, as proposed by former President Bolsonaro.

The definition of the new minimum wage is expected to be announced soon. However, the information indicates that the value is indeed R$1302. There are also discussions for the change to be effective on Labor Day, May 1. In any case, it is necessary to wait for the next meetings.

Shortly after Lula took office, his economic team recalculated to simulate an increase in the minimum wage to R$1,320, which represented an increase of 3%. The cost will range between R$7 billion and R$14 billion, which far exceeds the R$6 billion projected in the 2023 budget for spending on the national ground.

The analysis also indicated that the number of INSS (National Institute for Social Security) beneficiaries was greater than the transition team expected, which would increase costs, given that the minimum wage is the basis for the calculation to readjust the value of retirement benefits.

Although other solutions were offered, such as raising the second increase to R$1,320, only in May did the proposal to maintain the value at R$1,302, referred to during the Bolsonaro administration by Economy Minister Paulo Guedes, won. The value brings a real increase of about 1.5% for Brazilians.

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