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Learn about the projected minimum wage adjustment for 2024 and the elements that influence this choice.
Recently, in a dialogue with journalists, ministers Fernando Haddad (Finance) and Simone Tebet (Planning) announced that the Annual Budget Bill (PLOA) will set the 2024 minimum wage at R$1,421. This value indicates an increase of 7.7% compared to the current wage, which is R$1,320.
However, this amount may be revised until the end of the year. Therefore, the increase of R$ 101 is based on the INPC (National Consumer Price Index), which establishes the inflationary adjustment for households with income between 1 and 5 minimum wages per month. This is in line with the increase in GDP (Gross Domestic Product) in 2022.
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How is the increase in the minimum wage determined?
Therefore, this increase complies with current legislation, which determines that wage adjustments must be real, that is, higher than inflation. When determining the increase in the minimum wage for 2024, two economic indicators will be assessed: the accumulated INPC for the last 12 months up to November and the GDP growth in 2022.
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However, it is worth noting that, due to possible variations in inflation until November, the final amount of the minimum wage for 2024 may change.
How will the minimum wage be projected after 2024?
Therefore, when establishing the salary amount for 2025 and subsequent years, the formula will consider inflation measured by the INPC of the last year up to November. It will also take into account the economic performance (GDP) of the previous two years.
However, by considering bi-annual economic performance, the government intends to prevent a possible GDP contraction in a specific year from directly impacting wage increases in the following year.
What are the consequences of this plan?
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Therefore, the suggested adjustment aims at two main goals. These are:
- Boost the purchasing power of the working class;
- Stimulate the economy and ensure that inflation does not depreciate the real value of wages.
