Such a progression would be 92 reais (about 20 dollars) more than the 1,320 reais (275 dollars) currently in force.

According to the official note, in addition to restoring inflation, the increase in the national minimum wage takes into account three percent, which deduces that the economy would grow in 2023, with which the new value would be a real gain for workers.

The valuation above inflation was included in a provisional measure sent by Lula in May to the National Congress, which approved it in August.

The new value was then included in the budget law for 2024, approved by Parliament on December 22.

The definition of the new value derives from a formula adopted during the previous governments of the Workers’ Party, based on the National Consumer Price Index and the variation of the British Domestic Product (GDP, the sum of all the wealth produced in the country ).

As it will come into effect from January 1, the new amount will begin to be deposited at the beginning of February.

“The appreciation of the minimum wage is essential” for the country’s economy, says Lula, quoted in the statement.

He assured that, in this way, there will be “more money in circulation, business sales increase, industry produces more, and the wheel of the economy turns again, allowing the creation of new jobs.”

The Brazilian financial market maintained the GDP growth forecast for the end of 2023 at 2.92 percent and raised it from 1.51 to 1.52 percent for next year, as published this Tuesday by the Central Bank.

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