The Inflation Expectations Index for 2021 saw another increase, therefore, the The minimum wage for 2022 may be the highest in recent years. Average inflation is based on the National Consumer Price Index (INPC) accumulated this year, which has already reached 10.04%.
The Ministry of Economy had difficulty determining the exact value of this indicator. Inflation was mainly affected by continued increases in fuel and food. This is already the fourth inflation estimate released. At the beginning of the year the expected rate was 6.9%, then it passed by 8.4% and 9.1%.
The minimum wage for 2022 may be the highest in recent years
The minimum wage is readjusted according to the inflation index, and for this purpose, the government uses the National Consumer Price Index (INPC) that it publishes IBGE. With the continuous increases recorded in the country, this forecast is increasingly unstable. The latest estimate indicated that the INPC will reach 10.04%.
Therefore, the minimum wage adjustment in 2022 may be the largest in the past six years. At a rate of 10.04%, the national floor will rise from R$1,100.00 to nearly that 1.210.44 Brazilian Real.
Despite this, the minimum wage will have no real profit and the worker will not get an increase in purchasing power. For the citizen to get real earnings, the minimum wage adjustment must be higher than inflation. The last time there was an increase in the bottom line with real gains was with former President Michel Temer.
According to the federal government, the lack of real gains is due to a lack of funds. This is because an increase in the minimum wage affects all social benefits that fall to the state, such as PIS/Pasep, retirement and BPC.
The economic team predicts that for every real increase in the minimum wage, about 315 million R$ will come out of public coffers to pay retirement and pensions.
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