The Government is already planning to announce a new minimum wage for 2023. The announcement of the new minimum wage should come out on May 1st, on Labor Day, when it will come into effect. The policy of valuing the national minimum was one of Lula's promises when campaigning.

The proposal envisages raising the minimum wage by another R$ 18, going from the current R$ 1,302.00 announced by Bolsonaro in December last year, to R$ 1,320.00 as of 01/05.

The economic team, led by minister Fernando Haddad, is already raising the possibility of a new increase after inflation is within control at the beginning of the year. Furthermore, the Central Bank, heavily attacked by Lula and Haddad, is already showing that it can cut the Selic rate in the second half of the year, boosting economic consumption and investment activity in the country.

Furthermore, another topic discussed was the Income Tax exemption range. For now, it is R$ 1,903.98, less than a salary and a half. The proposal is to raise the minimum value to R$ 2,640.00, equivalent to two minimum wages. The announcement should also take place in May, but would only be valid for 2024.

According to the Minister of Labor, Luiz Marinho, Lula's promise to exempt those who receive up to R$ 5,000 from income tax will be fulfilled, but gradually until the end of the term, as the government would not have the fiscal conditions to give up this income today .

The Minister of Labor, Luiz Marinho, stated in an interview on TV Brasil that the minimum wage today would be R$ 1,396.00 if the PT governments had not left power. In Marinho's view, the minimum valuation policy will continue in the coming years and should follow the increase in GDP in the previous 2 years.

Lula recently created a working group for 90 days to define the permanent valuation policy for the minimum wage in the coming years. The order that created the working group was published in the Official Gazette of the Union on Thursday, 19/01.

The intention of the PT government, as in previous terms, is already known: to value the minimum wage always above inflation, but without concern or fiscal anchoring to contain public spending. The result of this is already known and could be disastrous in the medium term, as occurred during the Dilma government, when inflation got out of control and totaled 23.37% from 2014 to 2016.

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