Average income of Brazilian workers grew 3.1%

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With Portal Verdade

A survey released by the Institute of Applied Economic Research (IPEA), based on data from the National Household Sample Survey (PNAD Contínua), points to a 3.1% increase in the average usual income from work in 2023.

According to the mapping, in December 2023, the real average usual income of a Brazilian worker reached R$3,100. The amount is 0.7% higher than that observed in the previous month (R$3,078) and 3.9% higher than the value for December 2022 (R$2,985).

According to the classification of the Brazilian Institute of Geography and Statistics (IBGE), habitual earnings consist of the remuneration received by employees, employers and self-employed workers, monthly, without extraordinary increases or sporadic discounts, that is, without installments that are not continuous in nature.

Another finding of the study is that, in the second quarter of 2023, the average income was above that observed in the same quarter of 2019. Considering the period, it is the first time since the Covid-19 pandemic that the amount is higher (0.6% ).

Income of more educated workers and women sees greater jump

The biggest increases in income compared to the fourth quarter of 2022 were recorded in the North (4.1%) and Northeast (4%), among workers aged 40 to 59 (4.1%), with complete secondary education ( 3.2%). Only among workers with complete primary education did the gain show a drop.

Unlike previous years, the usual income received by women recorded greater annual growth than that of men throughout all quarters of 2023. In the fourth quarter, the increase among women was 4.2% against a 2.5% increase in the usual average income of men.

However, information from the 1st National Salary Transparency and Remuneration Criteria Report, published this Tuesday (26) by the Ministries of Women and Labor and Employment, indicates that female workers earn 19.4% less than male workers in Brazil.

The report was consolidated based on information filled in on eSocial, the federal system for collecting labor, social security and tax information. In total, 49,587 companies with 100 or more employees in Brazil filled out the information for 2022.

Furthermore, as demonstrated by Portal Verdade, since last November, wage inequality between men and women has grown in the country (remember here).

Hiring in the private sector and without a formal contract leads

Still based on the research, employees in the private sector without a formal contract were those who showed the greatest year-on-year increase in income in the fourth quarter of 2023 (6.9%).

Workers in the public sector and those with a formal contract registered increases of 3.9% and 2.1%, respectively.

Lawyer Bianca Peres draws attention to the finding that larger payments without a formal link can hide losses in the medium and long term.

“Some companies offer positions with higher salaries, but without effective hiring. By not paying for labor rights that are the responsibility of the contractors, it is possible to guarantee higher remuneration, but this worker is left without stability, access to vacations, 13th salary, unemployment insurance, among other guarantees. Over time, this difference, which is usually not very large in most cases, ceases to be attractive, considering that the worker will be completely unprotected”, he warns.

In the breakdown by sector, in the fourth quarter of 2023, there was a decrease in income in the transport area (-1.7%) and in construction (-3.8%) compared to the same period in 2022. Industry workers ( 5.7%), commerce (5.9%) and public administration (4.6%) had the biggest increases in the last quarter of last year.

Editing: Pedro Carrano

The article is in Portuguese

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