What is the current minimum wage and when will the next adjustment be?

The year 2023 is almost over, but do you know what the current minimum wage is?

Maybe you don't know because you're not looking for a job at the moment, or because you haven't entered the job market yet. Either way, it's okay, because we're going to tell you!

What is the minimum wage?

The minimum wage refers to the lowest amount of remuneration that a company can pay employees for all their time and effort in their daily work.

It is established and regulated by a country's government and serves as a wage floor to protect workers, ensuring that they receive a minimum wage that allows them to survive and meet their basic needs.

In Brazil, the practice of minimum wage was only established in 1988 by the Federal Constitution, being governed by Law No. 7,998, from 1990. So we can say that it is something relatively recent for us Brazilians.

When it was established in 1994, the minimum wage was just R$$64.79 per month, which today would be absurd for many, but considering the conditions at the time it was a value that made sense.

Since then, the minimum monthly remuneration has been adjusted annually, and reached around one thousand reais only in January 2020, at a value of R$1,039 reais.

The aim is for the minimum wage to keep up with inflation and price fluctuations, ensuring that workers have enough to cover their basic needs with their monthly salary.

To determine this salary, a calculation is made every year taking into account the living wage, related to the maintenance of a family consisting of two adults and two children.

The living wage includes expenses for food, hygiene, housing, health and education.

What is the current minimum wage?

On May 1, 2023, through Provisional Measure (MP) 1172/23, the minimum wage was readjusted to R$1,320,000, and is the lowest amount that a company can pay its employees who work regularly under the CLT model.

In relation to the year 2022, the minimum wage had an increase of 8.9%, we can understand that until the previous year professionals were receiving R$1,212 reais.

Along with the minimum wage, the charges related to it change, such as the INSS value or the minimum value for Income Tax Declaration.

When will the next adjustment be?

The next adjustment to the minimum wage is expected to occur in January 2024, although the dates may vary. However, it is unlikely that it will occur later than the first half of the year following the last adjustment.

According to some information provided by the Ministry of Economy, the adjustment could be up to 7.3% on top of the current minimum wage, leading to a value of R$1,423.60 reais.

But this is not an official value, so it is necessary to wait for a position from the government in the year 2024.