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Decree signed by President Jair Bolsonaro and published on Tuesday 1st in an additional edition of the "Official Journal of the Union" setting the minimum wage at R $ 998 this year. The present value is R $ 954.
The value was therefore lower than the estimate in the budget of the Union, R $ 1,006.
Decree signed by President Jair Bolsonaro – Photo: Reproduction / & # 39; Official Journal & # 39;
What the government's economic team Michel Temer said is that inflation in 2018 (one of the factors that determine the value) will be lower than previously projected – when? a minimum wage of R $ 1,006 was proposed in 2019.
According to information provided by the Department of Statistics and Statistics of the Union, Socio-Economic (Dieese), the salary minimum is used as a reference for the income of about 48 million workers in Brazil
Minimum wage
In R $
Source: Dieese and LDO 2019
Minimum wage formula
minimum wage adjustment is based on a formula that takes into account the domestic product gross GDP) two years ago and the change in inflation, as measured by the CPNI, of the previous year.
Therefore, for the 2019 minimum wage, the formula determines the sum of the GDP result for 2017 (maximum of 1%) and INPC for 2018. As it will be possible to know only about the amount of GDP, at the beginning of next year the variation of the INPC. from 2018, the government uses a forecast to propose the increase.
In addition to the result on inflation and GDP, the adjustment of the 2019 minimum includes compensation for the adjustment allowed in 2018 of 1.81%, which was lower than the inflation measured by the NCPI. This was the smallest increase in 24 years.
The year 2019 is the last of the validity of the current minimum correction formula, which began to be valid in 2012. The next President of the Republic, Jair Bolsonaro, did not not yet specified what would be his proposal regarding the minimum wage of 2020 in transmit.
The minimum wage adjustment has an impact on government spending. In fact, benefits paid by the National Institute of Social Security (INSS) to pensioners can not be lower than a minimum wage.
The 1988 Constitution established the minimum wage as the reference threshold for social security benefits – which include social security, social badistance and unemployment insurance.
The government predicts that every $ 1 R increase in the minimum wage generates an increase of about R $ 300 million a year in government spending.
However, according to Dieese's calculations, the minimum wage "necessary" for the expenses of a family of four including food, housing, health, education, clothing , hygiene, transportation, recreation and social security would be R $ 3,959.98. by month in November of this year.
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