Economy

Brazil raises the minimum wage 10.18% for 2022

The new minimum value is BRL 112 above the current one and resets the year's high inflation

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The minimum wage in Brazil for 2022 will be BRL 1,212. The new value is BRL 112 above the current minimum wage and restores the current year’s high inflation. The Provisional Measure (MP) confirming the new minimum wage was published this Friday.

Brazilian president Jair Bolsonaro confirmed the information on Thursday (30). “As of January 1st, the new minimum wage (will be) BRL 1,212,” he said.

The value of the new minimum wage was slightly above the one approved in 2022’s Budget by Congress on December 21st, based on the 10.18% forecast for the INPC, the index of inflation used by the federal government for the readjustment. In the text, the estimated minimum wage was BRL 1,210. In August, the government had sent a proposal to Congress with a projection of BRL 1,169.

READ ALSO: Inflation haunts Latin America’s growth in 2022

The change occurs due to the increase in inflation in the last months of the year. The 10.18% readjustment is the biggest since 2016 — when the minimum wage had an 11.6% readjustment.

Colombia and Mexico, two of Latin America‘s largest economies have also released minimum wage adjustments for 2022.

In Colombia, the minimum wage will go from just over COP 908,400 to COP 1 million, plus COP 117,172 for transportation vouchers, totaling COP 1,117,172.00 – around $279.10 per month. Although it has been one of the largest readjustments in recent years (10.07% Y-o-Y), the Colombian minimum wage is below that of other countries in the region, such as Argentina and Uruguay.

READ ALSO: Minimum wage: Colombia, Ecuador, and other Latin American countries have already defined new values for 2022

In Mexico, the minimum wage for workers is defined by the Council of Representatives of the National Minimum Wage Commission (Conasami, in the acronym in Spanish). The body met on December 1st and decided that the general minimum wage will be increased from MXN 141.70 to MXN 172.87 per day. In the so-called free trade zone, in the North of the country, the value of the minimum wage will go from MXN 213.39 to MXN 260.34 per day.

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