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Minimum wage: When will the new value defined by the Government begin?

MP 1,143/22 adjusted the minimum wage to R$ 1,302.00 from January 1, 2023. The value means an increase of R$ 43.40 and the hourly value of R$ 5.92.

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MP 1,143/2022, which raised the minimum wage to R$ 1,302 in 2023, was extended for another 60 days. This increase was allowed by Rodrigo Pacheco, president of the Senate, on the 17th, last Friday. The Provisional Measure was presented in November, and had been valid since January.

This way, Congress will have another 60 days to analyze the Provisional Measure, and thus approve, reject or change the text. The MP was created in December 2022. The Lula Government has already announced a new minimum value of R$ 1,320.00 from the month of May, that is, a new Provisional Measure must come into force after the end of the validity of the current.

The Minimum Wage MP

MP 1,143/22 adjusted the minimum wage to R$ 1,302.00 from January 1, 2023. The value means an increase of R$ 43.40 and the hourly value of R$ 5.92. The Provisional Measure was signed by Jair Bolsonaro, and published in the DOU on December 12, 2022.

The current adjustment percentage is 7.43% in relation to the minimum wage for the year 2022 (R$ 1,212). The variation in inflation in January reached 5.21% according to the INPC (National Consumer Price Index) of IBGE. In the last 12 months, ending in November, the INPC reached 5.97%.

The new value will change the calculation of social security, assistance and labor benefits owed by the Union. The value of employee contributions to the INSS and the ceiling on RGPS (General Social Security Regime) benefits will have to be readjusted through the regulation.

Will Lula increase the national minimum?

The big doubt is that the amount approved by the National Congress is R$ 1,320 in the General Union Budget for 2023. However, for it to come into force, a new Executive MP will be necessary, which, according to President Lula, should happen. If Lula's promise is confirmed, the minimum adjustment percentage should be 8.9%.

According to Lula, the increase in the national minimum is a “commitment to the Brazilian people“. Even because, the PT member promised, during his electoral campaign, that there would be a resumption of the policy of valuing the minimum.

Furthermore, the president declares that the minimum wage increase policy needs to provide a correction mechanism that should restore inflation for the period. Furthermore, it must be based on GDP growth – the sum of all goods and services produced in Brazil.

Does the minimum wage adjustment already have a date?

According to President Lula's speech, yes. According to him, "In May we will readjust it to 320 [R$ 1,320] and introduce a new minimum wage rule, which we already had in my first term“.

But, for this to happen, it is necessary to create a new Executive MP. Without it, it will not be possible to increase the minimum wage promised by Lula. The new minimum value is expected to come into force on May 1st, Labor Day.

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About the author  /  Tiago Menger

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