Government raises minimum wage to R$ 1,045

If you are finding that the final price of your purchases is quite expensive, this is not just an impression. Prices are really high and have surprised consumers in general, who have been trying to adapt to the new reality. However, to our surprise, inflation scared off even the government, which felt the need to increase the minimum wage once again.

Last year, official inflation for 2019 was forecast to be 3.86%. However, last week, the official inflation data revealed that the percentage is much higher: 4.48%. Therefore, the minimum wage, whose value was changed to R$ 1,039 in 2020, was readjusted again to R$ 1,045. Want to know more about this change? Then keep reading our article!

More information on the minimum wage increase

The change was announced by President Jair Bolsonaro this Tuesday. As it is a Provisional Measure, it will only become law in fact if it is approved by Congress.

However, it does not need the consent of deputies and senators to enter into force. Salary values will change from February 1st. Even so, if it is not approved by Congress, it can ask for its effectiveness after 120 days.

According to Bolsonaro, December inflation was atypical. The president stated that it was very high thanks to the increase in the price of meat and motivated the alteration of the minimum wage.

The increase of R$ 6 may seem insignificant to many people. However, the public accounts will feel this change a lot as R$ 2.13 billion will be taken out of there. It is necessary to consider that INSS benefits cannot be less than the minimum wage.

However, according to Paulo Guedes, in the next few days, there will be a collection of R$ 8 billion to cover this increase in expenses. However, it is still unclear where this money will come from. According to the economy minister, the readjustment is necessary so that the purchasing power of the minimum wage is maintained.

Final considerations

That said, we hope you understand why the government changed the minimum wage. As we make clear in this article, the increase in this value accompanies inflation. Therefore, be careful not to increase your spending. This will make you complicate your financial situation. To learn more about matters related to the country's economy, keep following our website.

 

Source: wow