Salário mínimo não é suficiente para arcar com custos da cesta básica, aponta Dieese

Federal Government Announces Minimum Wage Increase, But It’s Still Insufficient to Cover Basic Costs

On May 1st, Brazil’s minimum wage will increase from R$1,302 to R$1,320. While the increase may seem significant, it still falls far short of what is necessary to cover the cost of a basic basket of goods. According to the Department of Intersyndical Statistics and Socioeconomic Studies (Dieese), the minimum wage required to support a family of four should be R$6,571.52.

In practice, this amount represents five times the current base salary. When comparing the cost of a basic basket of goods to the net minimum wage (after a 7.5% deduction for social security), workers spend an average of 55.47% of their minimum wage on basic food items.

Dieese analyzed data from 17 cities and found that 13 had experienced a decrease in the value of the basic basket of goods. The largest declines were observed in Recife (-4.65%), Belo Horizonte (-3.72%), Brasília (-3.67%), Fortaleza (-3.49%), and João Pessoa (-3.42%). The most expensive basic basket of goods was in São Paulo (R$782.23), while the cheapest was found in Aracaju (R$546.14).

In light of this situation, the Ministry of Finance is studying the best proposal for a new minimum wage policy. At present, at least four proposals are being evaluated, and simulations are being conducted to assess their potential fiscal impact.

One option under consideration is to eliminate any rule governing the percentage increase in the minimum wage annually. Another option could be to use per capita GDP as a reference for annual wage increases. A third alternative would be to consider inflation and GDP growth from the previous two years.

A fourth option is a proposal from labor unions suggesting the use of the National Consumer Price Index (INPC) as the basis for wage adjustments, with a real gain of 2.40% added to the growth rate of the last two years’ GDP.

It is worth noting that until 2019, the minimum wage calculation incorporated the GDP from two years prior, as well as inflation measured by INPC.

Given the current economic context, why is the increase in minimum wage insufficient to cover basic expenses? An essential factor is that the current minimum wage is calculated based on a formula that does not consider the actual cost of living, which means that it is not sufficient to cover basic expenses.

According to the Brazilian Constitution, the minimum wage must be sufficient to ensure workers can live with dignity and support their families. Despite this, the country has a long history of low wages, which has perpetuated social inequalities.

In this regard, labor unions have long been calling for a minimum wage increase that accurately reflects the cost of living, which goes beyond the proposed R$1,320.

One of the challenges of improving minimum wages in Brazil is balancing the need to ensure workers and their families have enough money to support themselves with the need to avoid overburdening businesses and potentially increasing unemployment rates.

At the same time, a higher minimum wage would increase consumption, which could stimulate economic growth, particularly when considering the potential spillover effects of these family budgets—when families can afford to buy goods and services beyond basic necessities.

Thus, the conversation about minimum wage is not merely about ensuring living wages but also about promoting economic development that can lead to shared prosperity.

While it is clear that the current minimum wage is insufficient, how to increase it in a feasible, sustainable way that benefits everyone is a much more significant challenge. In any case, recognizing the urgency of this issue is a critical first step towards creating change.