Starting next year, on May 1st, workers insigned card in Brazil they will be entitled to a new minimum wage, a fact that represents good news for millions of families across the country.
O minimum wage value will be readjusted to R$1,461, marking an increase that is part of the government's goals of expanding the population's purchasing power.
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The Minister of Labor and Employment, Luiz Marinho, highlighted that the resumption of the policy of real earnings from this new salary will have a significant positive impact on the country's economy.
He also highlighted that more than 25 million retirees and pensioners of the National Social Security Institute (INSS) will receive the new minimum salary.
“I am sure that this decision will lead us so that we can, once again, take Brazil off the Hunger Map”, says Marinho, highlighting the government's alleged commitment to combating poverty and improving the living conditions of Brazilians.
The Minister of Finance, Fernando Haddad, also praised the real increase in the minimum wage, even though it is considered “little”. For him, this represents “a clear sign that theworker received government attention again”, marking a commitment to the well-being of the working class.
(Image: Getty Images/Reproduction)
In addition to the increase in the minimum wage, another relevant change that will affect the lives of millions is the exemption from Personal Income Tax (IRPF) for those earning up to R$2,640 per month.
Until then, the exemption was for those who received up to R$1,903.98 per month. This measure aims to alleviate the tax burden on lower-income taxpayers and provide more resources for these families.
The increase in the minimum wage and the exemption from IRPF were possible thanks to the return of the automatic correction rule minimum wage, which had been abolished in 2019 and was sanctioned in 2023 by President Luiz Inácio Lula da Silva.
According to the rule, the minimum wage will be readjusted based on the National Price IndexConsumer (INPC) accumulated in 12 months until November of the previous year, plus the growth in Gross Domestic Product (GDP) from two years before.
For 2024, the correction considers the GDP of 2022, which registered growth of 2.9%. However, it is important to highlight that the final value of the minimum wage in 2024 could be even higher if the INPC rises more than expected by November this year.
The government will carry out an update based on accumulated inflation between December 2022 and November 2023, with an official forecast for the INPC in 2023 of 4.48%.
Such changes will also affect several benefits, including thesalary bonusPIS/Pasep, the Continuous Payment Benefit (BPC), retirement benefits and INSS pensions, unemployment insurance and defense insurance.
In summary, changes to the minimum wage and IRPF exemption represent an important measure for boost the purchasing power of Brazilians and alleviate the tax burden on underage workers income. These changes will positively impact the lives of millions of people from May 2024.
