Brazil

Bolsonaro signs decree raising the minimum wage from R $ 954 to R $ 998

President Jair Bolsonaro signed the decree that sets the minimum wage at R $ 998 on Tuesday (1/1), in the first act as chief of the Executive. With this, workers and beneficiaries of Social Security will receive R $ 44 more than the current value, which is R $ 954.

The daily value of the remuneration will be R $ 33.27. For an hour, $ 4.54. According to calculations of technicians of the old government, the impact on the accounts will be R $ 15.4 billion. Estimates consider that for each more real on the salary floor, Social Security accounts increase, on average, R $ 350 billion. The remuneration would be R $ 1,006, as approved by the National Congressional Draft Annual Budget Law (Ploa) of 2019, but the weaker performance of inflation reduced wages. When it submitted the text, the government envisaged a rate of 4.2%.

The latest data from the Brazilian Institute of Geography and Statistics (IBGE) show, however, that the National Consumer Price Index (INPC) accumulates 3.56% over the 12 months ending in November. The lower salary will allow savings in the public coffers. If the R $ 1,006 were realized, the social security benefits would increase by R $ 18.2 billion. That is, the economy will be $ 2.8 billion.

Bolsonaro will also have to decide, by April 15, whether the current rule of the readjustment will be maintained for the next few years. Under current legislation, in force since 2007, the floor has a real increase, ie above inflation because the calculation formula considers the Gross Domestic Product (GDP) growth of two years before plus the inflation variation measured by the National Index of Consumer Prices (INPC).

google images source

source redaction https://www.correiobraziliense.com.br/app/noticia/economia/2019/01/01/internas_economia,728372/bolsonaro-assina-decreto-que-sobe-osalario-minimo.shtml

tags -