Government proposes 2016 minimum wage at $278.35
The minimum wage in Brazil is expected to reach $278.35 as per the 2016 Bill on Budget Guidelines.
The minimum wage in Brazil is expected to reach $278.35 as per the 2016 Bill on Budget Guidelines. The LDO—as it is referred to in Portuguese—was submitted to the National Congress on Wednesday (Apr 15), and is to raise the minimum wage by 8.37% on January 1.
Minister of Planning Nelson Barbosa explained that the calculation was based on a formula adopted in recent years. Ever since 2011, minimum wage adjustments have been based on the inflation observed the year before, according to the National Broad Consumer Price Index (IPCA), plus the country's GDP growth from two years back. Nonetheless, this is the last year before the formula expires.
In March, the government drew up a provisional measure to maintain the formula up to 2019, but the text has yet to be approved by Congress. If no new legislation on the topic is passed, the minimum wage will be set exclusively by the LDO and the General Budget of the Union, with values being negotiated every year among congressmen.
Translated by Fabrício Ferreira
Fonte: Government proposes 2016 minimum wage at $278.35
