Do we already have a projection for the minimum wage in 2023? What can we expect?

Will the minimum wage for 2023 see a significant increase? Read the text and find out.

When will the Provisional Measure with the new minimum wage for 2023 be released?

The Provisional Measure will only be released on the last day of the year, that is, December 31st, on the portal of Official Gazette of the Union.

The value will take effect on the first day of 2023. Despite this projection, it may be altered depending on the final calculation of accumulated annual inflation.

This year's minimum wage is R$1,212.00, an increase of 10,18% compared to the 2021 wage.

However, the difference only offset inflation for the period, and this year will be no different.

Do the benefits also increase?

Yes. The benefits paid by INSS (Brazilian National Social Security Institute) are calculated based on the current minimum wage.

In this case, they will also be subject to readjustment when the minimum wage in 2023 to become effective.

With this increase, the Government estimates an additional expense of R$40.8 billion solely on benefits for retirees and other insured individuals.

To give you an idea, each R$1 increase totals R$364.8 million in extra spending.

Does the minimum wage have national scope?

No. That's because, out of all 26 states, 5 of them do not use the national minimum wage as payment for their civil servants and workers, namely:

Paraná;
São Paulo;
Rio de Janeiro;
Rio Grande do Sul;
Santa Catarina.

Furthermore, Paraná has one of the highest regional minimum wage ceilings: R$1,616.48 (2022 value).

The state of São Paulo, in turn, has one of the lowest regional minimum wage ceilings, at only R$1,163.55.

Therefore, if the minimum wage in 2023 Even if the amount is set at the projected value, the state of São Paulo will also need to make adjustments to its minimum ceiling.

This is because no state can pay less than the minimum determined by the government. In other words, the regional minimum wage ceiling cannot be lower than the national minimum wage.

What is the projected value for the minimum wage in 2023?

Thanks to the frequent price increases in the country, we already have a forecast for next year's minimum wage.

According to data sent by the Government to the PLDO, the estimate of minimum wage for next year it is R$1,293.00.

The calculation considers the INPC of 6.7%, therefore, the readjustment will be R$82.00, compared to this year's salary of R$1,212.00.

What to expect from the minimum wage in 2023?

In fact, ever since the annual salary adjustment began to be calculated solely using the INPC (National Consumer Price Index) as a reference for correction, Brazilians can't expect anything new.

This is because the adjustment is made according to inflation so that purchasing power is not lost due to inflation increases during the base year.

In other words, the adjustment does not bring any real gains for Brazilians, unfortunately. Therefore, there is nothing to expect that is motivating.

What will the minimum wage be in 2024 and 2025?

The government forecasts an inflation increase of only 2.81% for the year 2024. Therefore, the The projected minimum wage for 2024 is R$1.337.

However, in 2025 the estimate is that there will be an adjustment of only 1% more in inflation, compared to the previous year, that is, it will be 2.9%.

In this case, the The projected minimum wage for 2025 is R$1.378.

How can I make my salary stretch further?

As you can see, we can't expect anything encouraging regarding... minimum wage in 2023, It will not bring us any real benefit.

So, we need to find ways to make our salary stretch and avoid any financial hardship, right?

The best way to do this is by having a family and financial plan, so you know exactly where you need to save to have some money left over or at least be able to pay all your monthly bills.

You can save on your water, energy, and gas bills, and also at the supermarket, for example.

The idea isn't to cut your essential expenses, just to make smart swaps that will help you save money.

Furthermore, if you receive a salary that doesn't cover your basic needs, it's important to find a way to earn extra income to ease the strain on your budget.

There are many ways to earn extra income without leaving home. Here on our blog you'll find many suggestions.

Conclusion

Unfortunately, the increase of minimum wage in 2023 It will make no difference to the wallets of Brazilians.

To reduce headaches related to financial issues, it's important to be able to save and make your money grow, however difficult that may be.

Here on our blog you'll find many tips that can help you organize your finances.

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Nara

Writer and aspiring Virtual Assistant. Passionate about the Digital Financial Market and its various aspects. Certified by Rock Content and HubSpot. ANBIMA student.

June 6, 2022