New minimum wage in Brazil

A decree issued today (Dec. 30) by Brazil's President Michel Temer has sanctioned the national minimum monthly wage for 2017 (effective as of January 1), setting it at R$937 ($287.50), up from the previous R$880 ($270).

The Ministry of Planning, Development and Management said in a statement Thursday (Dec. 29) that the increase will add $11.843 billion to the wage bill in 2017—an amount that accounts for 0.62% of the Gross Domestic Product—and will have “positive effects towards reviving consumption and economic growth over the year.”

Translated by Mayra Borges