At the end of 2022, the then President of the Republic, Jair Bolsonaro (PL), raised the federal minimum wage from R$ 1,212 to R$ 1,302 through a Provisional Measure. The adjustment of 7.41% came into effect on January 1, 2023. However, Lula's new government had intentions of increasing the minimum to R$ 1,320, as mentioned in the campaign.

What is happening is that the readjustment promised by Lula during the election is at risk. Furthermore, the promised salary increase is expected to cost around R$7.7 billion more than forecast in the 2023 Budget.

Given the economic situation that the new government faced, and after the acts of terrorism against the STF in Brasília, the readjustment may not occur.

Currently, the current minimum wage is R$ 1,302. The value is well below the R$ 1,320 promised by president-elect Lula. In fact, the National Congress approved the adjustment at the end of December 2022.

Based on this, the expectation is that Luiz Marinho (PT), Minister of Labor, will officially comment on the topic this week. And because of this lack of definition, bodies such as the INSS are waiting for the value to be defined, so that social security benefit payments can be made from January 25th.

To enforce the minimum value of R$ 1,320, a Provisional Measure must be made to readjust the value to what was promised.

According to the head of the Civil House, Rui Costa, the administration of Jair Bolsonaro (PL) held back the release of pensions in 2022, which will have an impact on the costs of INSS benefit payments in 2023.

Costa explains that: “There is an evident impact in terms of the minimum wage, in the retention that was made of pensions. The impoundment was not an administrative difficulty, it was a government's financial strategy, since, if it were an administrative difficulty, there would be no way to release the amount as it was released post-election, so it is clear that it was not a difficulty in administrative flow, but rather as a strategy of containment.”

The national floor is the base amount paid by the INSS for retirement, death pensions, and sickness benefits. In addition, the Continuous Payment Benefit (BPC), aid passed on to seniors aged 65 and over, and low-income people with disabilities, is also subject to adjustment following the minimum wage.

The transfers of these benefits begin on January 25th, and must already be in line with the minimum wage in force.

When there is an increase in the value of the minimum wage, there is also an increase in the value of the INSS contribution. Therefore, payments made from February onwards (referring to the January period) must be calculated based on the new minimum wage.

Those who contributed as optional or self-employed on the floor will also have new values – either at the rate of 11% or 20%, from the month of January onwards.

Those entitled to PIS/PASEP must also receive a higher amount, according to the minimum wage. The PIS bonus, for 2021, starts payments on February 15th for those born in January.

Payments will continue, and December birthdays will receive the amount on July 17th

The value of the unemployment insurance installment must also be equal to the national minimum. According to the Ministry of Labor and Pensions, the values will be updated from January 11th.

Finally, the government states that the upper ranges for calculating unemployment insurance will be updated by 2022 inflation, taking into account the National Consumer Price Index (INPC).

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