High inflation in recent months made the government raise the forecast for the minimum wage for next year. The 2022 budget law project, sent on the 31st to the National Congress, provides for a minimum wage of R$1,169, R$22 higher than the amount of R$1,147 approved in the Budget Guidelines Law (LDO).
The Constitution determines the maintenance of the purchasing power of the minimum wage. Traditionally, the economic team uses the current year’s National Consumer Price Index (INPC) to correct the minimum wage for the next Budget.
With the rise of basic items such as food, fuel and energy, the forecast for the INPC in 2021 jumped from 4.3% to 6.2%. The value of the minimum wage could get even higher if inflation exceeds the forecast by the end of the year.
As usual, changes in the value of the minimum wage also affect some social benefits offered to citizens by the government. This is because no benefit granted by the federal government can be paid in an amount less than the current minimum wage.
Check below the benefits that will be affected by the change in the value of the minimum wage:
The minimum amount granted by INSS (National Social Security Institute) benefits follows the value of the current national floor. Therefore, all the institute’s policyholders who receive the amount corresponding to R$1,100 will start earning R$69 more in the quotas paid to them.
With the increase in the minimum wage, the ceiling paid by the INSS on retirement, pensions and benefits will also be subject to change. Thus, if the new projection is confirmed, the maximum granted by the institute will reach BRL 6,843.07 in 2022.
The Continuous Cash Benefit, known as BPC/LOAS, will also have its value changed with the change in the minimum wage. Members of the assistance benefit will receive R$1,169. In addition, its concession rule regarding the minimum income to integrate the benefit also changes, from R$275 to R$292.25. This is because the BPC beneficiary must have an income equivalent to a quarter of the minimum wage.
Unemployment insurance is granted to help Brazilian workers in the event of unfair dismissal. Although the benefit is paid in amounts that vary according to the worker’s salary and the number of claims made, unemployment insurance cannot have a value lower than the current minimum wage. Thus, with the new projection for 2022, the minimum paid should be R$ 1,169.
PIS/Pasep salary allowance
The salary bonus is granted to workers who have worked for at least 30 days with a formal contract or as a civil servant in the previous year, who receive, on average, up to two minimum wages per month and who have been enrolled in the PIS/Pasep for at least five years.
The maximum amount to be paid to those who worked the 12 months of the previous year corresponds to the current minimum wage. On the other hand, those who did not work the entire year, receive the proportional amount. Thus, the salary bonus will also have changes with the readjustment of the minimum wage in 2022.
*with information from Agência Brasil
This news was last updated on September 3, 2021 10:03 AM
September 3, 2021 10:02 AM