Brazil will guarantee the permanent increase in the minimum wage starting in 2024 according to the new law sanctioned this Monday by President Luiz Inácio Lula da Silva.

The law, which was previously approved by Congress, also establishes the exemption for individuals from paying income tax.

Luiz Marinho, Minister of Labor, “stated in the act that the new minimum wage revaluation policy will directly impact some 25 million people, including workers and pensioners, and will stimulate the country’s economic activity.”

The measure that will guarantee the permanent increase in the salary of Brazilians starting next year, and which is currently 1,320 reais per month, is based on two main factors: annual inflation and the positive variation of the gross domestic product (GDP).

It is important to note that there may be variations regarding the way in which the salary increase is decided in the event that the country’s GDP is negative. In this case, “the minimum wage will only increase based on the consumer price index.”

M.Pino

Source: finanzasdigital

(Reference image source: Alicia Christin Gerald, Unsplash)

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