Brazilian government will raise minimum wage to R$1,320 on May 1st

The Minister of Labor and Employment, Luiz Marinho, said on Thursday (27) that President Luiz Inácio Lula da Silva will sign in the coming days a provisional measure to adjust the value of the minimum wage, which will rise from R$ 1,302 to R$ 1,320 (US$264) – an increase of 1.38%.

The president must sign the MP by May 1st, Labor Day. The new value will be effective as of this date.

Lula intends to announce the readjustment in an act with unionists and political parties at Vale do Anhangabaú, in São Paulo, during the holiday. His presence, however, has not yet been officially confirmed.

According to Marinho, the central unions demanded a value of R$ 1,391, but the government argued that the economy at the current level does not allow it to reach such a value.

He says the value can be discussed “in the future”.

“Important to remember that if the policy [of minimum wage appreciation] had not been interrupted by the coup against President Dilma [Rousseff], the minimum wage would be worth R$1391 today. So the central wanted to recover this difference,” he explained.

The valorization policy, however, was in effect until 2019.

In 2022, the minimum wage was R$ 1,212. As of January 2023, it became R$ 1,302, the value in effect until April.

The minister also announced that the government would send Congress a bill defining the new minimum wage valuation policy based on the previous year’s inflation calculation and the consolidated GDP (Gross Domestic Product) of two years before.

However, no date is set for sending the text to the legislature.

Marinho met with Lula at the Alvorada Palace this Thursday (27). Also participating were the Minister of Finance, Fernando Haddad, and representatives from 6 trade union centrals and the Union of Pensioners of Brazil.

The centrals that participated were:

CUT (Central Única dos Trabalhadores);
Força Sindical;
UGT (General Union of Workers);
CSB (Central of Brazilian Trade Unions);
CTB (Central Workers of Brazil);
NCST (New Central Workers Union).