President Lula Signs Rule That Limits Minimum Wage Increase; See the New Declared Amount!

Written by Roberta Souza

Published on 04/01/2025 at 09:44

Novo piso salarial para 2025 será de R$ 1.518, representando um aumento de R$ 106 em relação ao salário mínimo atual – foto/reprodução: Getty

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New Minimum Wage for 2025 Will Be R$ 1,518, Representing an Increase of R$ 106 Compared to the Current Minimum Wage

The president Luiz Inácio Lula da Silva enacted a new rule that establishes limits for the adjustment of the minimum wage.

According to the new legislation, the minimum wage for 2025 will be R$ 1,518, representing an increase of R$ 106 compared to the current value of R$ 1,412.

The final amount will be officially confirmed soon through a presidential decree, according to the website economiaaominuto.

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Objective of the New Adjustment Rule

The measure is part of a package of mandatory spending cuts proposed by the federal government and approved by the National Congress.

The new rule limits the adjustment of the minimum wage to 2.5% above inflation between 2025 and 2030.

This adjustment aims to align wage growth with the limits established by the new fiscal framework.

Details About the Current Adjustment Policy

Currently, the adjustment policy for the minimum wage remains in effect.

Since 2023, the increase is based on the sum of inflation measured by the National Consumer Price Index ( INPC ) over the past 12 months up until November and the growth of the Gross Domestic Product (GDP) from the two previous years.

The difference now is that there will be an adjustment ceiling of 2.5% above inflation.

Economic Impact of the New Minimum Wage Law

The approval of the minimum wage law is expected to generate savings of R$ 15.3 billion over the next five years.

MINIMUM WAGE - LULA - minimum wage - government — New Minimum Wage for 2025 Will Be R$ 1,518, Representing an Increase of R$ 106 Compared to the Current Minimum Wage – Photo/Publication: Disclosure

This is due to the fact that for every R$ 1 increase in the minimum wage, expenses increase by R$ 392 million, mainly due to Social Security and benefits linked to the minimum, such as the Continued Provision Benefit (BPC).

Comparison with the Previous Rule and New Values

Under the previous rule, the minimum wage for 2025 would be around R$ 1,528, considering inflation by the INPC of 4.84% and the 3.2% growth of the GDP in 2023.

The new rule limits this increase to 2.5%, resulting in the new value of R$ 1,518.

When the New Minimum Wage Will Be Paid

The new wage is expected to be paid at the end of January or the beginning of February, for the days worked in January 2025.

The change reflects the government’s commitment to balancing economic growth and fiscal sustainability.

President Lula Signs Rule That Limits Minimum Wage Increase; See the New Declared Amount!

New Minimum Wage for 2025 Will Be R$ 1,518, Representing an Increase of R$ 106 Compared to the Current Minimum Wage

Objective of the New Adjustment Rule

Details About the Current Adjustment Policy

Economic Impact of the New Minimum Wage Law

Comparison with the Previous Rule and New Values

When the New Minimum Wage Will Be Paid

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President Lula Signs Rule That Limits Minimum Wage Increase; See the New Declared Amount!

New Minimum Wage for 2025 Will Be R$ 1,518, Representing an Increase of R$ 106 Compared to the Current Minimum Wage

Objective of the New Adjustment Rule

Details About the Current Adjustment Policy

Economic Impact of the New Minimum Wage Law

Comparison with the Previous Rule and New Values

When the New Minimum Wage Will Be Paid

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