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New minimum wage of R$1,412 in 2024: when does it start?

New minimum wage of R$1,412 in 2024: when does it start?

From January 1, 2024Brazil's minimum wage will rise by 6.97%, reaching R$1,412. With this change, the first updated wage, referring to work completed in January, Most workers will not be paid until February 2024.

Domestic employees are among those who will receive the old amount, R$1,320, now at the beginning of January, as the month's payment relates to work in December 2023.

How does the minimum wage amendment affect retirees and pensioners?

On the social security side, the new amount of R$1,412 will be paid to retirees and pensioners in the last five working days of January and the first five working days of February 2024.

Regarding domestic workers, the president of Doméstica Legal, Mario Avellino, explained that employers must apply the amendment in the February payment for employees receiving the minimum wage. However, the amendment also applies to other situations, such as a period of leave or termination of an employment contract.

What is the ruling on adjusting salary?

The adjustment is the result of a new minimum wage correction rule, which takes into account the inflation forecast indicated by the National Institute for Inflation until November 2023, amounting to 3.85%, and GDP growth for 2022, at 2.9%.

In the case of alimony, the new amount must be paid in January 2024, explains lawyer and economist Alessandro Azzoni, member of the deliberative council of the São Paulo Business Association.

What about the minimum wage in the states?

Furthermore, it is important to remember that five Brazilian states have minimum wages higher than the federal minimum wage: Paraná, Santa Catarina, Rio Grande do Sul, São Paulo, and Rio de Janeiro. However, in the case of Rio de Janeiro, the value of the minimum wage has not been updated since 2019.

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What are the minimum wage expectations in 2025?

Currently, there are no detailed forecasts for the value of the minimum wage for 2025. But given the pace of updates and economic growth, similar annual adjustments are expected to continue for 2024.