Lula sends to Congress a project to increase the minimum wage

According to Planalto, the text provides that annual adjustments in the minimum wage are based on inflation measured by the National Consumer Price Index (INPC) for the previous 12 months, plus the real growth rate of the Gross Domestic Product (GDP) of the second year prior to the current one.

A similar measure was put into practice in 2007, it was converted into law in 2011. However, it was interrupted by the government of Jair Bolsonaro.

Valuing these gains was essential, according to the Planalto, “for the minimum to reach a real increase of 77% between 2003 and 2015”, also contributing to the removal of the country from the Hunger Map and to the reduction of social inequality.

economy wheel

A note released by the Presidency of the Republic highlights an excerpt from the statement made by Lula on April 30. At the time, the president said that raising the minimum wage benefits society as a whole.

“With more money in circulation, trade sales increase, industry produces more. The wheel of the economy turns again and new jobs are created”, said the president during the speech broadcast on national radio and television.

The text provides that, if the GDP (Gross Domestic Product – sum of all wealth produced in the country) is negative, the readjustment of the minimum wage will be based on the current inflation index in the period. “The bill is for this achievement to be permanent and for the minimum wage to be readjusted every year above inflation, as happened when we governed Brazil”, added the president.

Reference

The federal government recalls that the minimum wage is a reference for direct transfers made to more than 25 million Brazilians, via retirement, pensions, Benefit of Continuous Provision (BPC) and Unemployment Insurance. Together, these transfers reach R$ 470 billion per year.

The proposal will be analyzed in the Chamber of Deputies and in the Federal Senate.