Wellington Dias (PT-PI), senator-elect and coordinator of the budget core of the government's transition team, confirmed that president-elect Lula's (PT) team will propose a minimum wage of R$ 1,320.00 for the year 2023.

If approved, the value of the minimum wage proposed by the Transition PEC will be above what was added to the Jair Bolsonaro government's Budget. Today, the minimum wage is worth R$ 1,212.00.

During the campaign, Lula declared that, if he won the presidential race, he would adjust the minimum wage above inflation. In the Bolsonaro government, the salary was adjusted according to inflation in the years 2020, 2021 and 2022, that is, without a real increase.

According to the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), the minimum wage is paid to 56.7 million Brazilians, of which 24.2 million are beneficiaries of the National Social Security Institute (INSS).

See below the evolution of the national minimum since 2005:

In the meeting that took place between Lula and representatives from the union headquarters at CCBB (Centro Cultural do Banco do Brasil), the adjustment of the minimum wage was discussed and the value of R$ 1,320 in the year 2023 was decided by the transition team. 

For every R$ 1 increase in the national minimum, the Ministry of Economy calculates an additional cost of R$ 370 million per year. So in 2023, the total increase to a salary of R$ 1,320 equates to an additional spend of R$ 6.66 billion in new expenditure for the Union next year.

However, economists fear an increase in public debt and demand that additional spending be offset by the Transition PEC.

According to experts, with 76.8% of GDP in October or R$ 7.3 trillion, the level is already high in relation to emerging markets, where the average for total debt is 65%.

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