Minimum Wage of 2022 has Above 10% Gain After 6 years

With the escalation of inflation in the country, the general rapporteur for the 2022 Budget, Hugo Leal (PSD-RJ), increased from R$1,169 to R$1,210 the forecast for the minimum wage for next year . The report presented by the deputy should be voted on this Tuesday (21) by the CMO (Mixed Budget Commission) and then by the plenary of Congress, in a joint session of the Chamber and the Senate.

The value represents an increase of 10.04% in relation to the current minimum wage, of R$ 1,100. If approved, the readjustment will take effect in January 2022, with payment starting in February. The index is the highest in six years , but with no real increase (above inflation). Since 2016, when the minimum wage readjustment was 11.6%, inflation had been falling, as well as the increase in the floor.

The readjustment of the minimum is carried out every year based on the INPC (National Consumer Price Index), inflation of families with income of up to five minimum wages. Since the government presented to Congress the proposal for the LDO (Budget Guidelines Law) for next year, the estimate for the variation of the INPC this year has gone from an increase of 6.20% to a high of 10.04%.

The explanation for this readjustment is the impact of inflation in 2021, driven mainly by the evolution of fuel, food and electricity prices. Despite being higher, the value should represent the third consecutive year in which the national floor will not guarantee a replacement of purchasing power for the poorest population.

The inflation acceleration also impacted the INPC, the index used to adjust the minimum wage and the values ​​of social security benefits, accumulating an increase in the 12 months ended in November of 9.36%.

According to Leal, the report adopted a 10.18% projection for the INPC in 2021, considering that this index should be situated at a level close to the IPCA (Broad National Consumer Price Index) expected by the market, according to the Focus Bulletin published by the Central Bank on December 6th.

However, the opinion itself mentions that the projection is outdated and cites an updated forecast of 10.18% for the INPC. If this value prevails, the minimum wage would rise to R$1,212 next year.

The report needs to be approved by the CMO and then by the plenary of Congress. Proposal has to be voted on by Wednesday (22), before the beginning of the parliamentary recess. Even without a real increase (above inflation), the exact value of the minimum wage will only be known in January, after the disclosure of the consolidated INPC of 2021 by the IBGE (Brazilian Institute of Geography and Statistics).

The vote on the 2022 budget piece at the Congress’s Mixed Budget Commission (CMO) would take place this Monday, but was postponed to the next day after disagreements over the amount of BRL 5.1 billion for the electoral fund, funds for the area of ​​education and adjustments to security professionals and community health agents.

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