Ideal minimum wage rises 33% during a pandemic and hits R$6,000, shows Dieese

O minimum wage needed to meet the basic needs of a Brazilian family of four has risen to BRL 5,969.17 in November, the highest value in history, according to the National Survey of Basic Food Basket, carried out monthly by Dieese (Inter-Union Department of Statistics and Socioeconomic Studies).

This is the eighth increase followed by the value, which exceeds the current national floor of R$1,100 by 5.42 times. In comparison with the floor in March 2020, the beginning of the coronavirus pandemic in Brazil, the minimum wage has already risen by 33%, following the escalation of prices in the economy.

Dieese’s calculation is based on the value of the most expensive food basket in the month — which, in November, was Florianópolis (R$ 710.53), followed by São Paulo (R$ 692.27) and Porto Alegre ( BRL 685.32).

The research understands as basic needs spending on food, housing, health, education, clothing, hygiene, transport, leisure and social security.

No real readjustment

The floor value suggested by the government for 2022 is R$ 1,210, which corresponds to a 10% readjustment in relation to the current one. The increase follows the projection of the National Consumer Price Index (INPC) for this year, of 10%, and indicates that workers will not have a real increase.

Despite not recognizing that the minimum wage policy had changed, the economic team had already readjusted the floor only with the variation in inflation even before the pandemic, with the argument that it needs to preserve the fiscal adjustment.

Traditionally, the readjustments of the minimum are calculated from the increase of the INPC added to the variation of the Gross Domestic Product (GDP) of two years before. Created by the Lula government, this rule became law in 2012, during the Dilma government, but expired in 2019.

During this period, the minimum wage did not increase above inflation in 2017 and 2018, as the calculation considered the years 2015 and 2016, respectively, when the country was in recession.