Brazil Will Establish Post-Pandemic Minimum Income Program, Says Economy Minister

RIO DE JANEIRO, BRAZIL – Economy Minister Paulo Guedes announced yesterday, June 9th, that the federal government will establish a permanent minimum income program after the novel coronavirus (Covid-19) pandemic, named ‘Renda Brasil’ (Brazil Income). The Minister further said that a program will be developed to create formal jobs, with the return of the ‘Carteira Verde e Amarela’ (Green and Yellow Employment Booklet) project.

“We have learned throughout this crisis that there were 38 million invisible Brazilians who also deserve to be included in the labor market,” Guedes said during a televised cabinet meeting headed by President Jair Bolsonaro.

According to the Minister, several social programs will be merged for the creation of Renda Brasil which is expected to include the 38 million beneficiaries of the emergency aid – three installments of R$600 (US$120) – paid due to the covid-19 pandemic.

With the ‘Carteira Verde e Amarela’ program, one of the planks of Bolsonaro’s campaign platform, the government intends to make labor rights more flexible as a way to ease new hirings. “There are regimes where [workers] have many rights and very few jobs and there are 40 million Brazilians walking the streets without a signed employment booklet. But now we know who they are, and we’re going to formalize all these people,” said Minister Guedes.

Provisional Measure #905, published on November 12th, 2019 by President Bolsonaro, was designed to simplify the hiring of young people between the ages of 18 and 29, but it expired when it was not ratified by Congress.

Minister Paulo Guedes also confirmed that the emergency aid will be extended for a further two months, as already announced by Bolsonaro, and that during this time the productive sector may prepare to resume activities, with the adoption of security protocols. “And then [the economy] will take off again, crossing the two waves [the pandemic and unemployment],” Guedes said.

The 34th Government Cabinet meeting, which took place on Tuesday, June 9th, at the Alvorada Palace, was broadcast live on TV Brasil and its social media.

Source: Agência Brasil