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Lula signs decree that raises minimum wage to R$1,518

Brazilians have yet to withdraw R$8.56 billion in amounts owed

President Luiz Inácio Lula da Silva signed, this Monday (3), a decree that increases the minimum wage to R$1,518 from January 1, 2025.Lula signs decree that raises minimum wage to R$1,518

The increase of R$106 in relation to the previous value exceeds the inflation accumulated in the period.

Lula had sanctioned the law that limits the minimum wage adjustment to 2.5% above inflation from 2025 to 2030.

The calculation for the new minimum wage considered the National Consumer Price Index (INPC) of 4.84% in the last 12 months until November plus 2.5% of the Gross Domestic Product (GDP), representing a real gain above inflation .

“It is important to remember, and President Lula highlighted today, during the signing of the decree, that in his government the minimum wage will be adjusted above inflation every year, that is, a real gain. A commitment to the income distribution process, which is the role of the minimum wage”, highlighted the Minister of Labor and Employment, Luiz Marinho, as announced by the ministry.

For the minister, it would be a “tragedy” if there was no policy to increase the minimum wage that was approved in 2023. Marinho’s expectation is that in 2025 the country will continue its growth cycle.

According to the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), around 59 million people in Brazil have an income linked to the minimum wage. Around 19 million retirees and pensioners receive the minimum wage.

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