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Learn about the projected minimum wage adjustment for 2024 and the factors influencing this decision.
Recently, during a conversation 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$1,421. This amount represents a 7.7% increase compared to the current wage, which is R$ 1,320.
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However, this amount may undergo revisions until the end of the year. Therefore, the R$ 101 increase is based on the INPC (National Consumer Price Index), which establishes the inflation adjustment for households with monthly incomes between 1 and 5 minimum wages. This is combined with the growth of the 2022 GDP (Gross Domestic Product).
How is the minimum wage increase determined?
Thus, this increase follows the current legislation, which requires wage adjustments to be real, that is, higher than inflation. When setting the 2024 minimum wage increase, two economic indicators will be assessed: the accumulated INPC over the 12 months through November and GDP growth in 2022.
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However, it is worth noting that, due to possible inflation fluctuations until November, the final amount of the 2024 minimum wage may change.
How will the minimum wage be projected after 2024?
Therefore, when establishing the wage amount for 2025 and subsequent years, the formula will consider inflation measured by the INPC from the previous year through November. It will also take into account economic performance (GDP) from the two previous years.
However, by considering two-year economic performance, the government intends to prevent any eventual GDP decline in a specific year from directly affecting the wage increase in the following year.
What are the consequences of this plan?
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Thus, the proposed adjustment aims at two main goals. These are:
- Boosting the purchasing power of the working class;
- Stimulating the economy and ensuring that inflation does not depreciate the real value of wages.
