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What will be the value of the minimum wage in 2023?

A subject that has been much talked about in recent weeks is the adjustment of the minimum wage in 2023. With former president Luiz Inácio Lula da Silva (PT) being elected president, several doubts have arisen.

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A subject that has been much talked about in recent weeks is the readjustment of the minimum wage in 2023. However, following the results of the 2022 elections, with former president Luiz Inácio Lula da Silva (PT) being elected president, several doubts have arisen .

First, President Jair Bolsonaro (PL) stated that the minimum wage would increase to R$ 1,400, above inflation in the year 2023. However, Lula (PT) stated the same, but Bolsonaro has already sent the budget proposal for next year

Bolsonaro promises to increase the minimum wage to R$ 1,400

According to the budget proposal presented by the Bolsonaro government, the minimum wage for 2023 is estimated at R$ 1,302. However, President Bolsonaro promised to increase the minimum wage to R$ 1,400, an amount completely outside the budget for 2023. 

Therefore, the Federal Government forwarded the budget proposal for 2023 to the National Assembly, which established the minimum value for next year at R$ 1,302.

Lula predicts increase above inflation

Last Sunday, during the electoral campaign, president-elect Luiz Inácio Lula da Silva (PT) promised to adjust the minimum wage above inflation, which has not happened since 2019, the first year of the Bolsonaro government.

In this sense, according to Lula, the increase would be 1.3% above the inflationary variation rate. Under the current Government, the inflation forecast for this year is 5.6%. In short, the national floor would increase by 6.9% in 2023, going from R$ 1,212 to R$ 1,296.

Furthermore, the president-elect must also negotiate this amount with the National Congress, as each R$ 1 increase means at least R$ 380 million more in public spending. In other words, simply increase the salary it's not possible

However, Lula also needs to worry about guaranteeing the value of R$ 600 from Auxílio Brasil. In fact, the PT even plans to reestablish the name Bolsa Família. In August, Auxílio Brasil received an additional R$ 200, rising to R$ 600, but this amount is temporary and will only be paid until December.

This year, the budget proposal for 2023 has already been presented by the current Government of President Jair Bolsonaro. With this in mind, Lula must negotiate a PEC (Proposed Amendment to the Constitution) with the National Congress to guarantee growth above inflation. 

However, the president-elect also intends to establish an emergency infrastructure plan with priority works in each state during the first 100 days of government. And also reimburse expenses from the 2023 budget, such as Farmácia Popular and the Minha Casa, Minha Vida program.

In short, for all this to happen, a budget quota much higher than what is defined will be necessary, and the president-elect's team will need to know how to organize all the finances, to have something to draw resources from.

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About the author  /  Tiago Menger

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