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Changes to PIS/Pasep and minimum wage will affect 53 million Brazilians!
The changes to the minimum wage and PIS/Pasep rules, recently approved by the National Congress, will directly change the lives of more than 53 million people in Brazil. The new proposal, which is part of a package of adjustments by the Lula government, affects workers with formal employment contracts, public servants, retirees and pensioners.
salary allowance
One of the Proposed Constitutional Amendment (PEC) approved in the early hours of this Friday brought changes to the income limit for those entitled to PIS/Pasep. Today, those who earn up to two minimum wages can withdraw the benefit, based on the base year of two years prior to payment.
Currently, this means that workers with incomes of up to R$2.640 will be able to receive the benefit in 2025, considering the 2023 minimum wage of R$1.320. However, from 2026 onwards, this ceiling will be adjusted for inflation, gradually falling until it is fixed at 1,5 minimum wages.
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For example, in 2026, the amount will still be adjusted for inflation, but in the future, beneficiaries will have to earn a maximum of 1,5 minimum wages to be entitled to the bonus. This change directly affects 25,8 million workers who would receive the benefit in 2025, totaling R$30,7 billion.
Impact on workers with national minimum wage
Among the millions of beneficiaries, 1,3 million workers with formal employment contracts, who receive exactly the minimum wage, will suffer doubly from the changes in the bonus and the adjustment of the national minimum wage.
The minimum wage, currently adjusted by the INPC (inflation) and by GDP growth from two years earlier, will now have its real growth limited by the rules of the fiscal framework.
The new methodology allows adjustments between 0,6% and 2,5% above inflation, depending on government revenues in the previous year.
In 2025, the expectation is that the minimum wage will rise to R$1.518, a difference of R$10 less than the current rule, which would lead to R$1.528. This change generates an estimated saving of R$7 billion for public coffers.
Retirees and pensioners will be impacted
In addition to formal workers, 21,1 million INSS retirees and pensioners, who receive the minimum wage, will feel the effects of the new rules. This includes beneficiaries of the Continuous Benefit Payment (BPC/Loas), intended for low-income elderly and disabled people, also linked to the adjustment of the floor.
Domestic workers on the front line
Another group that is heavily affected is domestic workers. Data from the IBGE indicates that, in Brazil, 1,5 million workers in this category are formally employed.
Most of them receive exactly the minimum wage, but are not entitled to PIS/Pasep, which leaves them vulnerable to changes in the readjustment of the national minimum wage.
Experts point out that the changes could bring fiscal relief to the government, but they could also impact the purchasing power of millions of Brazilians. Lower-income workers and retirees, who are the main dependents of the minimum wage, could feel the impact of the changes in the coming years.
With this, the approved changes open a new chapter in the country's economic policy, significantly affecting the routine and budget of millions of Brazilian families.
But he only got the rotten part of the minimum wage pyramid! Is that the PT?,😡😡😡