Decree signed by President Jair Bolsonaro and published on Tuesday (1st) in an additional edition of the "State Gazette of the Union" established the minimum wage at R $ 998 this year. The current value is R $ 954.
As a result, the figure was below the estimated EU budget of R $ 1,006. The budget was sent to Congress last year by the Michel Temer government in August.
Decree signed by President Jair Bolsonaro – Photo: Reproduction / & # 39; Official Diary & # 39;
What the economic team of the Michel Temer government said is that inflation in 2018 (one of the factors determining value) will be lower than previously predicted – when in 2019 a minimum wage of R $ 1.006 was proposed.
According to information from the Department of Statistics and Socio-economic Studies (Dieese), the minimum wage serves as a reference for the income of approximately 48 million workers in Brazil.
Minimum wage in 2019
Bolsonaro signs the decree to define value
Source: federal government
Minimum wage formula
The minimum wage adjustment is based on a formula that takes into account the result of the gross domestic product (GDP) of two years earlier and the variation of inflation, measured by the NCPI, of the previous year.
For the minimum wage of 2019 the formula therefore determines the sum of the GDP result for 2017 (maximum 1%) and the INPC for 2018. As it will only be possible to know the variation of the INPC of 2018 early next year, the government uses a prognosis to propose the increase.
In addition to inflation and the result of GDP, the adjustment of the minimum of 2019 includes compensation for the adjustment of 1.81% permitted in 2018, which was lower than the inflation rate measured by the NCPI. That was the smallest increase in 24 years.
The year 2019 is the last of the validity of the current minimum correction formula, which became valid in 2012. The next president of the republic, Jair Bolsonaro, has not yet described in detail what his proposal for the minimum wage will be from 2020 onwards.
The adjustment of the minimum wage affects government expenditure. This is because the benefits paid to retirees by the National Social Security Institute (INSS) may not be less than a minimum wage.
In the Constitution of 1988 the minimum wage was defined as the reference level of social security benefits, including social security, social assistance and unemployment insurance.
The government is projecting that every R $ 1 increase in the minimum wage generates an increase of about R $ 300 million per year in government spending.
According to Dieese's calculations, the minimum wage would be "necessary" for expenses of a family of four with food, housing, health, education, clothing, hygiene, transportation, leisure and social security R $ 3,959.98 per month. November of this year.