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The government announced the value of the minimum wage in 2025. The measure affects millions of Brazilians and defines new parameters for benefits and adjustments in several economic areas.
The Senate approved last week a change in the adjustment of minimum wage value in 2025, proposed by the Lula government as part of a package to curb public spending. The measure, which changes the current rules, now awaits approval presidential.
The decision will directly impact millions of private sector workers and INSS beneficiaries. Currently, around 28 million retirees and pensioners, almost 70% of the total, receive amounts based on the minimum wage. See how the new rules will work and the amount expected for 2025.
How it currently works
President Luiz Inácio Lula da Silva reinstated, in 2023, the rule that adjusts the minimum wage by the previous year's inflation plus the GDP growth of two years prior. This formula allows for real gains in the national minimum wage.
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After four years of stagnation, 2024 marked a turning point. The minimum wage had an effective increase of 5,64%, providing greater purchasing power to workers.
What changes with the new rule?
The main change is the inclusion of a ceiling for real gains. From now on, this limit will be 2,5%. The percentage follows the rule of the fiscal framework, which establishes a range between 0,6% and 2,5% for growth in expenses above inflation, subject to revenue performance.
The goal is to reduce the fiscal impact of the adjustment. Estimates indicate that each R$1 increase in the minimum wage generates an additional cost of approximately R$450 million to the public accounts.
What will the minimum wage be in 2025?
Based on the new approved rule, the minimum wage will be R$1.518 next year. This value reflects the application of the 2,5% ceiling on real gains over inflation projected for 2024.
The adjustment meets the need to maintain fiscal balance, while ensuring some real gains for workers. However, the change could have an impact on long-term wage policy and will be closely monitored by economists and unions.
The ideology of this government is perverse. What is the practical effect of spending more than it collects? Answer: the deficit in public finances, the pressure from the non-alienated and the impoverishment of the people. But is it really evil or just simple incompetence?