Federal Government Proposes Limiting Minimum Wage Growth

The federal government has filed a bill in the Chamber of Deputies that limits real growth in the minimum wage to a maximum of 2.5% per year, as part of a fiscal adjustment package. The measure aims to save R$$ 2.2 billion in 2025 and R$$ 9.7 billion in 2026. Currently, the minimum wage is adjusted based on the variation in the INPC and real GDP growth from two years prior. The new bill establishes that the real increase in the minimum wage cannot be less than 0.6%.

In addition, the bill proposes changes to the rules for granting the Continuous Benefit Payment (BPC), including considering the sum of the monthly income of all family members and prohibiting deductions not provided for by law. It also determines that anyone who owns assets or properties above the Income Tax exemption value will not be able to enjoy the benefit, with an expected savings of R$$ 2.0 billion per year.

Another measure included in the project is the mandatory biometric registration for the granting, maintenance and renewal of social security benefits, with an expected savings of R$$ 2.5 billion per year. The project also adjusts the Bolsa Família parameters, establishing maximum rates for single-person families, with an expected savings of R$$ 2.0 billion in 2025 and R$$ 3.0 billion annually from 2026 onwards.

Finally, the project foresees that federal expenditure allocated to the Constitutional Fund of the Federal District (FCDF) will grow limited to the IPCA, with an expected savings of R$$ 800 million in 2025 and R$ 1.5 billion in 2026.

Source: IstoÉ Dinheiro