Government estimates minimum wage of BRL 1,169 for 2022

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SAO PAULO – The Federal Government sent to Congress a proposal for a minimum wage of R$ 1,169 for 2022. The value was disclosed this Tuesday (31) in the document of the Annual Budget Law Project (PLOA), of the Ministry of Economy, to the next year.

The value represents an increase of R$69, or 6.3%, in relation to the current minimum wage of R$1,100. The previous proposal, disclosed in April in the Budget Guidelines Law (LDO), was for an increase to R$ 1,147 in 2022.

The inflation registered in recent months, however, was higher than expected – and the Federal Constitution prevents the government from restoring less than the inflation rate for the period to the minimum wage.

During a press conference this Tuesday afternoon, Ariosto Antunes Culau, secretary of the Federal Budget, was asked about the proposed amount for the minimum wage not to exceed inflation.

He highlighted that the amount considers the cut-off line, made in July, to prepare the estimates. According to him, this is because the budget process involves hundreds of expenses and budget estimates for the following year must be defined in the period from July to August.

The calculations presented today consider a Consumer Price Index (INPC) of 6.2% and a Broad National Consumer Price Index (IPCA) of 5.90%. In the most recent Focus report, by the Central Bank, however, projections already point to inflation above 7% in 2021.

“This has always existed. But when there are periods of major changes in parameter expectations, [o descompasso] becomes more evident”, he said.

He explains, however, that there are bimonthly reports, readjustment of parameters in November and that there are other ways to address the changes, such as a Modifying Message, for example.

According to Bruno Funchal, Special Secretary of the Treasury, the discussion of the Budget may have adjustments or an update of the value when the regulation is sent, amid rising prices.

Funchal claims that it is possible to issue a rule to contemplate the adjustment of the R$ 2.00 that were lower this year, due to higher-than-expected inflation.

emergency assistance

During the press conference, Funchal also reinforced that the current moment does not suggest an extension of Emergency Assistance next year, given the advance of vaccination and the reduction in the number of cases and deaths by Covid-19.

“I don’t see space to justify an expansion of Emergency Aid. Now, there are many uncertainties, like new strains, for example. But this is unpredictable, it’s not the scenario we’ve been seeing in recent days,” he said.

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