Minimum wage gains a new increase starting in February, that is, starting next Monday? That’s right. The Federal Government will carry out yet another readjustment of the this year’s minimum wage. The Brazilian Institute of Geography and Statistics (IBGE) announced that the National Consumer Price Index (INPC), used to correct the minimum, accumulated a 5.45% increase in 2020.
When the minimum wage was corrected for 2021, from R $ 1,045 to R $ 1,100, the Federal Government readjusted the minimum wage by 5.26%. However, as the increase in INPC in 2020 was 5.45%, the readjustment given by the Federal Government at the end of last year was lower. Therefore, in order to avoid loss of purchasing power, the minimum wage must be adjusted to R$ 1.101,95 in 2021.
The new value adjustment, based on the INPC, follows what determines the country’s Constitutional text. The minimum wage must be corrected, at least, by the variation of the INPC of the previous year.
However, as the adjustment starts to take effect on January 1 of each year, before the release of the official result of INPC by IBGE, the government makes the correction based on an estimate. It was exactly what the Government did, estimated the salary at R $ 1,100. But now, with the correction, the value should go to R $ 1,101.95.
Last year, the procedure was the same. The minimum wage readjustment index was initially lower than the result of the INPC of 2019. However, soon after the IBGE was released, the federal government determined a new correction.
The minimum wage was initially set at R $ 1,039. However, based on the National Consumer Price Index, the value increased to R $ 1,045, remaining in effect until December 2020.
No real increase
The readjustment of the minimum wage varies according to the increase in prices, recorded based on inflation rates. In other words, workers will receive the purchasing power to be adjusted according to the inflation index (general increase in the price level).
This was already the format adopted in 2020, the first under President Jair Bolsonaro’s administration, when the economic area readjusted the minimum wage based only on inflation in 2019.
According to data from the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), the minimum wage serves as a reference for 49 million workers in Brazil.