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The New Minimum Wage of R$ 1,518 Began to Be Paid in February, Reflecting Real Gain Over Inflation. The Update Also Adjusts Pensions and Social Benefits, but Brings Direct Impact on Public Accounts and Fiscal Planning.
The new minimum wage of R$ 1,518 began to appear on February paychecks, referring to January work, and ensured a real increase in relation to accumulated inflation.
The adjustment, as provided by law, also updates the floor for pensions and benefits linked to the minimum wage, such as BPC and salary bonus, which generates a direct impact on public expenditures.
Payment Occurs in the Month Following Work
Although the new value has been in effect since January 1, most workers received the adjustment only in February.
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Chinese retirees over 60 continue to work in manual labor because the rural pension of 163 yuan per month does not cover even the basics.
This is because salaries are usually paid in the month following the worked period.
Thus, the credit with the new value only appeared on the February paycheck, without changes in the payment routine.
Calculation of the Adjustment and Composition of the New Value
The permanent policy for valuing the minimum wage combines inflation replacement measured by the INPC (National Consumer Price Index) and real gain linked to GDP growth (Gross Domestic Product) from two years prior.
Based on this methodology, the national floor increased from R$ 1,412 to R$ 1,518, an increase of R$ 106, which represents a growth of 7.5% over the previous value.
Projections and Adjustments During the Budgetary Process
During the preparation of the Budget, the government presented preliminary projections that varied according to estimates of INPC and GDP.
At different times, simulations indicated values close to R$ 1,502 or higher, depending on updates to the economic indices.
After the official data closure, the minimum wage was set at R$ 1,518 for 2025, according to the law enacted at the end of the previous year.
Effect of the New Fiscal Framework
The approval of the fiscal framework in 2024 established limits for the real growth of federal expenditures, which may vary between 0.6% and 2.5% per year.
According to the Ministry of Finance, this rule does not change the formula for adjusting the minimum wage, but it influences the available budget space to accommodate mandatory expenses.
Economic area technicians explain that, although the framework does not impose a direct ceiling on the minimum wage, the increase in the floor expands automatic spending, such as that of the INSS, requiring planning to avoid imbalances in public accounts.
Reflections on Pension and Assistance Benefits
The new minimum wage serves as a reference for pensions and benefits from the INSS, as well as benefits like the BPC (Continuous Cash Benefit) and the salary bonus.
Since January, no benefit can be less than R$ 1,518.
Payments above one minimum wage were adjusted by 4.77%, an index corresponding to the variation of the INPC in 2024, according to an inter-ministerial ordinance published by the federal government.
Reason for Choosing the INPC and GDP Indices
The use of INPC is justified by representing the inflation of families with income from 1 to 5 minimum wages, according to the IBGE.
Economic policy specialists assert that this index reflects more accurately the cost of living of low-income workers.
The GDP from two years prior is used to measure economic growth and calculate real gains, connecting the adjustment to the evolution of productive activity.
The goal, according to the Ministry of Labor, is to balance income appreciation with fiscal sustainability.
Difference Between the National Floor and Adjustments of Other Categories
The national minimum wage establishes the minimum legal value that a worker can receive, but it does not replace collective agreements or career plans.
Public and private sectors can set higher floors in their own negotiations.
In federal civil service, salary revisions follow specific rules and are not directly related to the adjustment of the minimum wage.
Effects on Consumption and the Labor Market
According to consulted economists, the rise in the floor tends to benefit low-income families, who allocate most of their income to basic consumption.
The increase may also stimulate local commerce and certain service sectors.
On the other hand, analysts observe that the adjustment pressures employers’ costs and increases the volume of mandatory government spending, requiring attention to fiscal management to avoid imbalances.
Points of Attention for the Coming Months
In the coming months, experts recommend attention to three factors:
the correct application of the new floor on payrolls, especially in domestic and intermittent links;
the automatic updating of pension and assistance benefits;
and the monitoring of the fiscal impact of the adjustment within the framework’s targets.
These aspects will be decisive in assessing the balance between income appreciation and budgetary responsibility throughout 2025.
What Changes for the Worker
With the value of R$ 1,518 in effect since January, the minimum wage ensures real increase over the inflation of the period, according to the INPC.
The formula that combines INPC and GDP from two years prior was applied in full, while the fiscal framework acts only as a global limit for the Union’s expenses.
Benefits from the INSS equivalent to one minimum wage were adjusted along with the floor, and other amounts followed the variation of the INPC.
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