Minimum wage 2023: learn all about
The readjustment of the minimum wage is an important issue for millions of Brazilian men and women. Recently, President Luiz Inácio Lula da Silva discussed this issue, talking about the Income Tax exemption for the poorest and the readjustment of the minimum wage by the GDP.
To understand better, it is important to know that the definition of the minimum wage increase changed a little at the beginning of the year. The new government had planned a value of R$ 1,320, but had to revise it due to the increase in the costs of benefits from the National Institute of Social Security (INSS).
The Minister of Finance, Fernando Haddad, highlighted the need to consider other aspects to ensure an increase in the minimum wage above inflation. He suggested the possibility of a tax reform in the first half of 2023 to achieve a significant increase.
This reform could affect the way Income Tax is paid in the country. According to President Lula, “those who have payslips pay real income tax, as it is deducted and there is no way not to pay it. Those who earn a lot, pay little, because they receive it as a dividend”.
Namely, payslip is the popular paycheck, document that proves that the worker is hired.
Readjustment by GDP
Gross Domestic Product (GDP) is a measure of a country's economic activity, representing the sum total of final goods and services produced in a given period. Experts regard GDP as an important indicator of a country's economic health. In view of this, President Lula proposed the readjustment of the minimum wage by GDP.
The idea is that if the economy grows, the minimum wage should also increase accordingly. In addition, changes in tax policy are proposed to benefit the poorest population and charge more from the richest. Currently, the minimum wage adjustment is based on the previous year's inflation and the National Consumer Price Index (INPC).
What will the minimum wage look like in 2023?
Finally, so far, the minimum wage for 2023 has been set at R$ 1,302. It is important to remember that this amount was set in December 2022. However, as mentioned earlier, the original amount proposed by the government was R$ 1,320, but it was discarded due to the impact on the year's budget.
In addition, it is important to remember that in addition to the increase in the gross minimum wage, other benefits and payments, such as those of the National Social Security Institute (INSS), also increase proportionally.
