This Monday, the 20th, the proposal for the new minimum wage was presented to the Joint Budget Commission (CMO) of the National Congress. The value, established at R$ 1,210, was proposed by the project’s rapporteur, deputy Hugo Leal (PSD-RJ), and will be valid for 2022.
In practice, there is no relevant increase. The increase will be 10.04% in relation to the current R$ 1,100 and follows the trend indicated by the National Consumer Price Index (INPC), a table that, among other things, verifies the accumulated inflation in the country and is used as a reference for minimum wage adjustments.
In other words, the increase is nothing more than an inflation adjustment, with no real gain in Brazilian purchasing power. Even so, the proposal is above the R$ 1,169 proposed by the government last August and which did not consider the acceleration of inflation at the end of this year. See below for more information.
What this article covers:
- How is the proposed minimum wage for 2022 going?
- What predictions of the Ministry of Economy with approval of the PEC of Precatories?
How is the proposed minimum wage for 2022 going?
The text by Deputy Hugo Leal was received at the CMO but has not yet been voted. After approval by the Commission, the project still needs to go through the plenary of the House and Senate, which should hold a joint vote (not yet scheduled).
Despite the forecast of a 10.04% increase, the real increase in the minimum wage for 2022 should only be definitively established in January, when the INPC for 2021 will be consolidated. currently proposed.
The proposal delivered this Monday ends up changing a little the predictions about the fiscal space made possible by the approval of the PEC of Precatorios, which took place last week. Initially, the government provided for a fiscal space of R$ 106.1 billion. Now, that ceiling will be raised to R$113.1 billion.
That money will be used for a lot. Around R$ 90 billion will be used in the payments of the Auxílio Brasil, an income distribution program. The aid, which replaces Bolsa Família, is seen as one of President Bolsonaro’s strategies in next year’s election race.
Part of the resources will also be used for readjustments related to social security benefits and social assistance. In all, around R$ 110 billion will remain with the Executive Branch. The remainder, R$ 3.1 billion, will be open to the other branches of government, the Judiciary and Legislature, and also to the MPF and the Federal Public Defender’s Office.