On Monday (Dec. 30), President Luiz Inácio Lula da Silva signed a decree raising the minimum wage to BRL 1,518, effective January 1, 2025. This BRL 106 increase over the previous amount surpasses the inflation accumulated during the period.
The new minimum wage was calculated based on the National Consumer Price Index (INPC), which rose by 4.84 percent over the 12 months ending in November, combined with 2.5 percent of Gross Domestic Product (GDP) growth, ensuring a real increase above inflation.
“It’s important to note, as President Lula emphasized today during the signing of the decree, that under his administration, the minimum wage will be adjusted above inflation every year, ensuring a real gain. This reflects a commitment to income distribution, which is the fundamental role of the minimum wage,” highlighted Minister of Labor and Employment Luiz Marinho.
For the minister, it would be a “tragedy” if there were no policy to increase the minimum wage, which was approved in 2023. Marinho expects the country to continue its growth cycle in 2025.
According to the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), approximately 59 million people in Brazil have incomes tied to the minimum wage, including around 19 million pensioners who receive the minimum wage.
