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Small Town in São Paulo Leads Ranking of Formal Salaries, Driven by Aerospace Industry and Agriculture, According to Data from IBGE and Recent Social Indicators That Place the City Among the Best Positioned in the Country.
A municipality with just over 4.7 thousand inhabitants, located in the interior of São Paulo, appears with the highest monthly average salary among formal workers in the state, according to IBGE data for 2022.
The survey shows 5.2 minimum wages in Gavião Peixoto, a figure higher than that of the capital São Paulo, which recorded 4.4 minimum wages, and also above Campinas, often referred to as the “capital of the interior,” with 3.8 minimum wages during the same period.
The result contrasts the population size of the municipality with its performance in the formal labor market.
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For comparison, the state average was 3.4 minimum wages in 2022.
On the national scene, recent series from IBGE indicate that the average monthly income of formal workers remains below 3 minimum wages, which helps to frame the position occupied by the São Paulo municipality.
How IBGE Calculates the Formal Salary Average
The indicator used by IBGE considers exclusively the average monthly salary of workers with formal ties, that is, jobs with signed workbooks and declared remuneration.
Labor market specialists note that this focus does not include informal workers or other sources of income, such as benefits or self-employed activities.
Analysts also point out that, in small towns, the presence of companies with higher salaries can influence the average more intensely than in large urban centers, where the labor market is more diversified.
Still, the indicator is widely used for comparisons between municipalities and for analyses of regional productive profiles.
Embraer and Qualified Jobs in the Interior of São Paulo
A significant portion of the formal income recorded in Gavião Peixoto is associated with the presence of Embraer, which maintains a unit in the municipality focused on industrial activities and testing in the aerospace sector.
The site features a runway with 4,967 meters in length, often mentioned in specialized reports and technical materials as one of the longest in the world for aeronautical tests.
According to aerospace industry analyses, structures of this kind require highly qualified labor, which tends to be reflected in higher formal salaries.
The runway is described, in specialized publications, as being used exclusively by the company for specific operations and tests.
Regarding the number of workers, reports mention more than 2,800 employees linked to the local unit.
As recent confirmation of this number was not found in the company’s public documents, the figure may vary over time and should be interpreted as an estimate cited by secondary sources.
Agriculture Holds Significant Weight in the Local Economy
In addition to the aerospace industry, agriculture plays a significant role in the municipality’s economy.
Information released by the City Council of Gavião Peixoto indicates that oranges account for about 53% of the local agricultural activity, while sugarcane represents approximately 38%.
The same survey points to the presence of citrus sector companies, such as Cutrale and Fischer, in the processing and logistics of production.
Agricultural economics specialists highlight that integrated production chains, with production, processing, and export, tend to generate greater employment stability throughout the year.
Additionally, services and small industries complement the municipality’s productive structure.
Regional studies often indicate that the coexistence of agro-industry and higher technological intensity activities contributes to expanding the base of formal jobs and diversifying local income sources.
Social Indicators Put the Municipality in National Spotlight
Gavião Peixoto also appears in rankings of social indicators.
In the Social Progress Index (IPS) Brazil 2024, the municipality topped the national ranking among 5,570 Brazilian municipalities, according to data released by the survey.
In the following edition, the IPS Brazil 2025 once again placed the municipality in the top position.
Public policy specialists emphasize, however, that aggregated indicators reflect averages and do not capture potential internal inequalities, making it necessary to analyze historical series and other indicators to evaluate the sustainability of the results.
Strategic Location and Logistical Effects
Located in the Araraquara region, Gavião Peixoto is close to important highway corridors in the interior of São Paulo.
This position facilitates the flow of agro-industrial production and the movement of professionals linked to the aerospace industry.
The operation of Embraer also generates indirect demand for local services, such as food, maintenance, and transportation.
Regional economists note that this type of productive linkage tends to increase the number of formal ties and the circulation of income in municipalities that concentrate large industrial plants.
Recent Emancipation and Origin of the Name
Although it is a relatively young municipality, Gavião Peixoto was emancipated on December 27, 1995, with official installation on January 1, 1997, after being split off from Araraquara.
However, the occupation of the area is older and is linked to the agricultural and railway expansion of the interior of São Paulo.
The name of the city honors Bernardo José Pinto Gavião Peixoto, a military man and politician from the 19th century who presided over the then province of São Paulo during two periods, according to historical records.
Comparison with São Paulo and Campinas in the Salary Ranking
In 2022, Gavião Peixoto registered an average of 5.2 minimum wages among formal workers.
In the same year, the city of São Paulo reported 4.4 minimum wages, while Campinas stood at 3.8.
Labor market specialists emphasize that the average salary, analyzed in isolation, does not describe the entire dynamic of local employment, as it does not consider informality or internal income differences.
Still, the indicator allows for comparison of productive profiles and levels of formalization among municipalities in the same state.
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