Brazilian government confirms minimum wage value for 2026

The federal government has confirmed the new minimum wage for 2026, which will be adjusted from R$ 1,518 to R$ 1,621, an increase of R$ 103 year-on-year, representing a 6.79% rise.

The new 2026 minimum wage will take effect in January, but workers will only feel the change from February onwards, when the first salary for the new year is paid.

The adjustment to the national minimum wage is defined after evaluating inflation over twelve months up to November of this year (4.18%, as released by IBGE this Wednesday) plus 2.5% real growth (2024 GDP, limited to 2.5%).

The value, although with a real gain for 2026, is lower than what the government itself estimated in recent months. Initially, the 2026 minimum wage was set at R$ 1,631, then reduced to R$ 1,627 in November, and now in December it has been confirmed with a R$ 10 difference from the originally proposed amount.

According to government calculations, for every R$ 1 increase in the minimum wage, an expense of R$ 420 million is generated. Therefore, the new R$ 103 increase in the minimum wage next year corresponds to an increase of approximately R$ 43.2 billion in mandatory expenses.

The national minimum wage is a reference for 59.9 million Brazilians, according to data from the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese). The value impacts not only salary adjustments, but also the amounts paid by the National Institute of Social Security (INSS), the amount paid monthly by Individual Microentrepreneurs (MEIs), and more.

Minimum wage is insufficient to cover brazilians' expenses

According to Dieese, the monthly minimum wage necessary to support a family of four in Brazil should have been R$ 7,067.18 in November of this year, or 4.66 times the national minimum wage of R$ 1,518. In other words, even if all four family members worked and received the national minimum wage, it would still be less than estimated by the department.

Dieese's calculation assumes that the minimum wage should be sufficient to cover the expenses of a worker and their family for food, housing, health, education, clothing, hygiene, transportation, leisure, and social security.

Source: Contábeis