Minimum wage in 2022: government announces readjustment

The federal government forwarded to Congress, this Tuesday (31), the PLOA (Project for Annual Budget Law) of 2022. 27%. For the correction, the government considers that the INPC (National Consumer Price Index) should be at 6.2% in 2022. In other words, the projection for the readjustment of the minimum replaces only inflation, with no real increase.

The correction provided for in the PLOA is greater than that initially estimated by the government in the LDO (Budget Guidelines Law) of 2022. In the text, which is the basis of the Federal Government Budget, the forecast was that the minimum wage would be readjusted by 4 .3% to R$1,147.

The difference between the projection of the LDO and the PLOA is because the government defines the amount of the minimum wage correction based on the inflation of the previous year. In this case, as the Budget is for 2022, the index to be considered refers to 2021. As the year has not yet ended, the adjustment proposal is made based on inflation estimates, which have been increasing throughout the year.

Financial market estimates, for example, indicate that inflation should be higher in 2021. According to the latest Focus Bulletin, a market report by the Central Bank, the IPCA (Broad National Consumer Price Index), another inflation index, should close the year at 7.27%.

The periodic adjustment of the minimum wage is provided for in the Constitution, with the aim of preserving people’s purchasing power. Next year, when putting the correction into practice, the government may review the value of the adjustment if the projection is below official inflation. In 2020, that happened. But the same was not done in 2021: considering last year’s inflation, the minimum should be R$ 2 higher this year.

More Informations soon.