Monday, December 11, 2023

Lula announces project that readjusts minimum wage above inflation

The Brazilian President, Luiz Inacio Lula da Silvaannounced this Sunday that in the next few days it will send Congress a bill that will guarantee that, henceforth, the minimum wage will always be readjusted above the inflation rate of the previous year.

The progressive leader took advantage of a pronouncement on a national radio and television channel on the occasion of the commemoration this Monday of Labor Day to announce a small increase in the current minimum wage and a tool so that this annual readjustment always guarantees a real increase, above inflation.

The leader of the socialist Workers’ Party assumed his third term on January 1 and that same day announced an increase in minimum salary from 1,212 reais (about US$242.4) in 2022 to 1,302 reais (about US$260.4) in 2023.

But to allow the readjustment of the minimum wage this year is above inflation, Lula announced this Sunday that, as of May 1, its value will be raised to 1,320 reais (about US$264), which guarantees a real increase of 2.8%.

“It’s a increase small, but real, above inflation, for the first time after six years”, stated the head of state in his statement, recalling that since the workers party was evicted from power the value of the minimum had been losing value compared to the price rate.

The president added that, to guarantee that this conquest be permanent, it will send to Congress the bill that establishes a new way of calculating the increase, which takes into account not only the price rate but also the economic growth of the country.

“You can be sure that, until the end of my term, the minimum wage will once again be the great instrument of transformation social than it was in the past, when it grew 74% above inflation” and lifted millions of Brazilians out of poverty, he said.

“It is necessary to remember that the appreciation of the minimum wage is not essential only for those who earn the minimum wage. With more money in circulation, trade sales increase, industry produces more, the wheel of economy it turns again and new jobs are created”, he said.

Lula also took advantage of his pronouncement to announce that as of May workers who earn up to 2,640 reais (about $528) monthly will be exempt from the payment of income tax. That limit has been frozen for eight years at 1,903 reais (about US$308).

The president added that, until the end of the term, he will fulfill the promise he made to raise up to 5,000 reais (about US$1,000) the salary limit of people exempt from paying taxes.

The president stated that in his first terms Brazil it had a record generation of jobs, the minimum wage was always readjusted above inflation and all labor rights were guaranteed.

“Everything has gotten worse in recent years. He employment He disappeared. Wages lost purchasing power. Inflation went up. Interests skyrocketed. And rights won over decades were destroyed from one day to the next, ”he said.

Lula said that since he returned to the Presidency it is working to recover the gains lost by the workers.


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