Government forwards Budget with a minimum wage of R$ 1,302 in 2023

Projection sent to Congress foresees Aid Brazil of at least R$400, but Planalto promises ‘efforts’ to maintain the amount of R$600

Marcello Casal Jr./Agência BrasilMinimum salary expected for 2023 is BRL 1,302, according to the draft Budget Law of 2023

the project of Budget Law of 2023forwarded by the government to Congress this Wednesday, 31, provides for the minimum wage of BRL 1,302 in 2023. The amount is BRL eight times greater than the amount of BRL 1,294 approved by the Budget Guidelines Law (LDO). In addition, it is BRL 90 higher than the current minimum, of BRL 1,212, and represents a rise slightly greater than 7.41% — which is the forecast of the Ministry of Economy for the National Consumer Price Index (INPC) this year. The Constitution establishes that the readjustment of the minimum wage cannot be inferior to the inflation of the previous year. However, the new estimated value is still provisional. It may get even higher if inflation exceeds the forecast until the end of the year, the deadline for the value to be defined. Regarding the draft Budget, there were few changes on the economic growth estimates for 2023 compared to the LDO parameters. The GDP growth projection was maintained at 2.5% for next year. The forecast for the Broad Consumer Price Index (IPCA), used as the official inflation index, went from 3.25% to 4.5% in 2023.

Over the Brazil aid, in the proposal sent to Congress, there is no provision for an increase in the value of the benefit. In the text, the average value included is BRL 405, that is, less than the BRL 600 currently paid – which will only be valid until December of this year. However, the government says it will make “efforts” to increase the benefit in 2023. “The federal government recognizes the relevance of this public policy and the importance of continuing that increase for the families served by the program. In this sense, the Executive Power will make efforts in search of legal solutions and budgetary measures that allow the maintenance of that amount in the year 2023, through dialogue with the National Congress to meet this priority.

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