Bolsonaro signs Provisional and fixed minimum wage of R $ 1.039 for 2020

This value is a result of an adjustment 4,1% over the current amount, that's $ 998.
31/12/2019 15h50 - Updated 2/01/2020 13h39

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Agency Brazil

President Jair Bolsonaro issued interim measure (MP) which increases the minimum wage from R $ 998 to R $ 1.039 from Wednesday (1º). The new value is the inflation adjustment of the year, which ended 2019 in 4,1%, according to the National Consumer Price Index (INPC), calculated by the Brazilian Institute of Geography and Statistics (IBGE).

It is the first time in history that the minimum wage exceeds the range of $ 1 thousand since the beginning of the Real Plan, in 1994. The MP was published in special edition of the Official Gazette later on Tuesday (31).

Regarding the Annual Budget Law (LOA) from 2020, approved by Congress two weeks ago, the value was R $ 8 higher. This is because the previous forecast from the federal government for inflation 2019 It was from 3,3%, but the percentage ended up in 4,1%, according to the latest estimate measured by IBGE.

in a statement, the Ministry of Economy reported that the increase in the value of meat in recent months pushed the overall growth in prices at the end of the year, expanding the calculated inflation percentage.

“Previously, the government designed the minimum wage of R $ 1.031 per month for 2020, as the amending message to the Budget Law Project 2020 (PLOA-2020). The high recent price of meat pressed inflation and, like this, It generated an expectation of higher INPC, what is reflected in the minimum wage 2020. But as the announced value was above the level previously estimated, It is necessary to carry out subsequent adjustments budget, in order not to compromise the achievement of the goal of primary income and spending ceiling set by Constitutional Amendment No. 95”, said folder.

Until last year, the minimum wage adjustment policy, passed into law, It provided for a correction for inflation plus the change in Gross Domestic Product (START, sum of goods and services produced in the country). This model was in force between 2011 e 2019. however, there was not always real increase in this period because the country's GDP, in 2015 e 2016, registered fall, with falling 7% accumulated in these two years.

The government estimates, for each increase of R $ 1 the minimum wage, expenses amounted to R $ 355,5 millions, mainly because of the payment of Social Security benefits, the salary allowance and unemployment insurance, all linked to the minimum.

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