Government Lowers Estimated Minimum Wage for 2020 to R$1,031

RIO DE JANEIRO, BRAZIL – The minimum wage for next year will be R$1,031 (US$257,75), announced yesterday evening, November 26th, by the special secretary of Finance of the Ministry of Economy, Waldery Rodrigues.

The amount represents a reduction of R$8 in relation to the General Budget bill of the Union for next year, which provided for a minimum of R$1,039 for 2020.

The new minimum figure is included in a message modifying the 2020 Budget sent yesterday by the government to the National Congress. According to Rodrigues, the drop in projection is justified by the reduction of inflation estimates by the National Consumer Price Index (INPC) for next year.

The modifying message reduced the INPC (Consumer Price Indices) estimate to 3.5 percent in 2020, half a percentage point less than the four percent projection contained in the draft budget law. The Broad National Consumer Price Index (IPCA), used as the official inflation index, dropped from 3.9 to 3.5 percent.

Consumer Price Indices

The estimated growth for the economy, on the other hand, increased from 2.17 to 2.32 percent. The estimate for the average price of the dollar next year increased from R$3.80 to R$4.

When announcing the reassessment of estimates, Rodrigues stressed that the new policy for the minimum wage will only be decided in the coming weeks by President Jair Bolsonaro. The Secretary of Finance, however, says the figure will serve as a reference for the Planalto Palace.

Source: Agência Brasil