Minimum Monthly Wage in Brazil Will be Adjusted to R$1,040 in 2020
RIO DE JANEIRO, BRAZIL – The text of the budget bill voted by Congress provides that the monthly minimum wage will be increased to R$1,040 (US$260) in 2020, with no increase above inflation.
The increase will be 4.2 percent over the current value of the minimum wage (R$998). The increase is the same as that of the National Consumer Price Index (INPC).
For the subsequent two years, the budget bill also calls for indexation to follow only the INPC variation.
In relation to the fiscal target, the bill anticipates a primary deficit for 2020 of R$124.1 billion for the central government, which includes the National Treasury, the Social Welfare and the Central Bank accounts. For this year, the target is a deficit of R$139 billion.
The text includes a provision allowing the executive branch to authorize salary adjustments for public servants next year. This section of the bill is contrary to the administration position, which, in its original proposal sent to Congress in April, provides for the option of increasing only the Armed Forces’ military personnel’s salaries.
Source: Agência Brasil
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