What is the Minimum Wage in Brazil 2024

This adjustment seeks to maintain Brazilians’ purchasing power, keeping up with inflation and generating real gains for workers. It is essential for several benefits, such as retirement and pensions.

In this article, you will understand how this value was calculated, as well as learn about regional differences and how the minimum wage impacts the daily lives of Brazilians.

What is the Minimum Wage in Brazil?

The minimum wage was created to ensure fair payment for low-income workers and help them have a basic life. To do this, it must be adjusted according to annual inflation.

Since January 1, 2024, the minimum wage in 2024 is R$1,412. It was adjusted by just over 6.97% compared to 2023. The daily value will correspond to R$47.07 and the hourly value, R$6.42.

As a result, the Personal Income Tax exemption bracket applies to all taxpayers who earn up to 2 minimum wages, equivalent to R$2,824.

When does the new minimum wage come into effect in 2024?

According to a statement from the Federal Government, the new minimum wage value will come into effect on January 1, 2024, with payment starting on February 1.

How much will the minimum wage be adjusted in 2024?

The minimum wage adjustment in 2024 will be 6.97%. When discounting inflation by the INPC (3.85%), this increase will bring a real gain of 5.57% in relation to the previous value of R$1,320.

• What is a real increase?  This type of increase indicates that the gain will be above inflation, which allows the worker to increase their purchasing power.

What is the value of the regional minimum wage in 2024?

According to  Complementary Law No.  103 of July 14, 2000, states can establish different minimum wages by category, as long as the values ​​are greater than the R$1,412 set by the Federal Government.

The creation of this regional minimum wage occurred to consider the differences in the cost of living and the economic standard of each state.

See below the minimum wage value by state.

Minimum wage in Sao Paulo

In 2024, the regional minimum wage in São Paulo is R$1,640.00. This value represents an increase of 5.8% compared to the 2023 value, with a real gain of 2.1%.

The value of the minimum wage in São Paulo for 2025 has not yet been officially defined, but expectations are that it will remain above the national minimum wage.

Minimum wage in Paraná

According to data from the State Council for Labor, Employment and Income (Center), the regional minimum wage in Paraná varies between R$1,856.94 and R$2,134.88. This salary varies according to the worker’s occupation:

• R$ 1,856.94 – covers agricultural, forestry and fishing workers.
• R$ 1,927.02 – covers administrative service workers, salespeople in stores and markets, and repair and maintenance.
• R$ 1,989.86 – covers workers in the production of industrial goods and services.
• R$ 2,134.88 – covers mid-level technical workers.

The value of the minimum wage in São Paulo for 2025 has not yet been officially defined, but expectations are that it will remain above the national minimum wage.

Minimum wage in Rio Grande do Sul

In 2024, the regional minimum wage in Rio Grande do Sul varies between R$1,573.94 and R$1,994.56, depending on the professional category.

• Band 1: R$ 1,573.89
• Band 2: R$ 1,610.13
• Band 3: R$ 1,646.65
• Band 4: R$ 1,711.69
• Band 5: R$ 1,994.56

On the Rio Grande do Sul state government website, you can find out about the categories in each salary range.

How much will the minimum wage be adjusted in 2025?

With the release of the LDO (Budget Guidelines Law) project, we know that the government plans to increase the minimum wage to R$1,502 in 2025. This amount represents an increase of 6.67% in relation to the current minimum wage. In cash terms, the increase would be R$90.

History of the minimum wage in Brazil between 1994 and 2024

See below what the minimum value was between 1994 and 2024.

Does Brazil’s minimum wage guarantee a reasonable standard of living for workers?

No, according to calculations by Dieese  (Inter-Union Department of Statistics and Socioeconomic Studies), the minimum wage should be R$6,575.30.

This amount would be enough to cover the needs of a family of four for food, housing, health, education, hygiene, transportation, leisure and social security.

This value is 4.6 times higher than the minimum wage of R$1,412. One way to get this answer is to also compare the national minimum wage with that of other countries in the Organization for Economic Cooperation and Development (OECD). 

The survey was conducted among OECD member countries plus Brazil and Russia and considered data from 2021. Just for comparison, check out the minimum hourly wage in 12 of the countries most visited by Brazilians.

• Canada: Minimum $10.5 per hour.
• USA: Minimum of $7.3 per hour.
• Chile: minimum US$3.3 per hour.
• Germany: minimum $10.5 per hour.
• Spain: minimum of US$9.1 per hour.
• Ireland: Minimum of $10.3 per hour.
• England: minimum US$11.1 per hour.
• France: minimum of US$12.2 per hour.
• Portugal: minimum of US$6.7 per hour.
• Russia: minimum $2.6 per hour.
• Australia: Minimum of $12.9 per hour.
• Japan: Minimum of $8.2 per hour.
• Brazil: minimum of US$2.2 per hour.

Brazil has the second lowest minimum wage among 31 countries in this ranking. The only country with a lower minimum wage is Mexico. We also surveyed the minimum wages of South American countries that were not part of the OECD at the time of the above research:

• Argentina: R$ 1,022.18;
• Uruguay: R$ 2,714.36;

FAQs: 

See below the answers to the main questions about minimum wage.

What is the minimum wage?

It was created in 1940, during the government of Getúlio Vargas, with the enactment of the  Consolidation of Labor Laws (CLT) to be the amount that employers must pay employees for the work carried out in the production of goods and services, without gender distinction.

It is intended to ensure that they can meet their basic needs and those of their families. These needs include housing, food, education, health, leisure, clothing, hygiene, transportation and social security. The minimum is also adjusted regularly to maintain its purchasing power.

The Real was created in Brazil in 1936, during the government of Getúlio Vargas. This happened through Law No. 185. However, its value was only defined on May 1, 1940. It was on this date that the specific law on the Real came into effect.

Initially, there were 14 minimum wages, with some regions having values ​​up to three times higher than others. It was only in the 1988 Constitution, in its  Article 7, that the unification of the value was enshrined and established in law.

What changes with the new value of the current minimum wage?

Starting February 1st, those whose payments are tied to the minimum wage will receive the amount of R$1,412. This is the case for those who receive:

• Unemployment insurance;
• INSS pensioners;
• PIS/Pasep;
• domestic worker;
• Alimony.

How is the minimum wage increase calculated?

The calculation of the minimum wage increase is based on the following items:

• Inflation measured by the INPC (National Consumer Price Index) – if the INPC indicates inflation of 6.5%, the national minimum wage for next year must indicate at least the same value.
• GDP Growth – The real growth rate in Gross Domestic Product (GDP) over the previous two years.

What was the percentage increase in the minimum wage?

If the minimum wage is maintained at R$1,412, the percentage adjustment in the minimum wage in 2024 will be 6.97%.

What is the INSS value of a minimum wage?

For CLT employees, domestic workers and casual workers who earn up to 1 minimum wage, the contribution rate is 7.5%.

In this case, using the 2024 minimum wage as a reference, you would have to contribute R$105.90 monthly.

Are those who receive a minimum wage entitled to Auxílio Brasil/Bolsa Família?

The answer to this question is: it depends on the number of people in your family.

These social benefits were created to support families in situations of extreme poverty or poverty.

• Extreme poverty:  monthly per capita family income  equal to or less than R$105.01;
• Poverty: monthly per capita family income between R$105.01 and R$210.

Therefore, if you receive a minimum amount and have less than six members in your family, you do not meet the criteria for receiving the benefit.

Will people who earn more than the minimum wage get a raise?

It depends because this increase is only automatic if the company adopts the minimum wage as the basis for payment. If the company follows the category convention, the adjustment is not automatic.

Read More: What is the Minimum Wage in France 2024?