April 25, 2024

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The new minimum wage for 2022 is setting a record and will be the highest in recent years

The new minimum wage for 2022 is setting a record and will be the highest in recent years

Every year, the minimum wage is subject to an adjustment based on the inflation rates of the country, that is, if inflation rises by 10%, for example, the minimum wage must be readjusted by law in the same proportion.

However, due to the epidemic period and the country’s economic situation, inflation rates have gradually increased month by month, which will subsequently lead to a record increase in the value of the national minimum wage in 2022.

Minimum wage adjustment

The indicator that the government uses to calculate the progress of inflation is the INPC (National Consumer Price Index), which, as released by the Economic Policy Secretariat of the Ministry of Economy last Wednesday (17) is at the highest level at 10, 04%.

Thus, if the new forecast indicator corresponds to no changes in the method of calculating the minimum wage, the 2022 national minimum could jump from R$1,100 to R$1,210.44. The value of R$41.44 is higher than the latest official government forecast for the 2022 minimum wage, which was released in August, and came to R$1,169.

The national minimum is used as the basis for rewarding 50 million people, of whom 24 million are beneficiaries of the INSS (National Institute for Social Security) who receive retirement, pension and benefits.

balance in possession

It is worth noting that this year’s minimum wage did not replace last year’s inflation rates. This is due to a 5.45% INPC increase in 2020 and a 5.26% correction applied to the minimum wage.

Therefore, the minimum wage this year of R$1,100 should have been R$1,101.95, however, the then Special Secretary for Treasury and Budget at the Ministry of Economy, Bruno Funchal, reported that the R$2 compensation owed by the government would be made at the end of the year , when a new temporary measure to correct the minimum wage is sent in 2022.

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Thus, in addition to the new inflation-based forecast that makes the minimum wage jump from R$1,100 to R$1,210.44, this amount still exists, which could make the minimum wage reach R$1,212.44 in 2022.

This new value ended up being the highest increase in the past six years, when the minimum wage was raised in 2016 by 11.6%. Check out how the adjustment has been made in recent years.

Salary adjustment in the last six years

  • 2016: R$880 (adjusted 11.6%);
  • 2017: R$937 (6.48%) readjusted;
  • 2018: R$ 954 (adjustment of 1.8%);
  • 2019: R$998 (4.6% adjustment);
  • 2020: R$1,045 (4.7% adjustment);
  • 2021: R$1,100 (5.2% adjustment);
  • Forecast for 2022: R$1,212.44 (10.04% adjustment plus R$2 readjustment).

Salary Adjustment Effect

An increase in the minimum wage has a significant fiscal impact on the federal government, considering that many government benefits, such as those paid by the National Social Security Institute, use the minimum wage as a basis.

Thus, as the government disclosed, only R$1 was created in the minimum wage, and an expenditure of R$355 million, an increase of R$100 in the 2022 wage limit, a new expenditure of at least R$35.5 billion must be created.