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Economy and your pocket

Wages

A crowd of workers with red flags
Photo: PT Brasil · CC BY 2.0

Left

Minimum wage rising above inflation and no income tax up to R$ 5,000.

Far right

Ended real increases in the minimum wage.

Why it matters

A real increase means wages rise faster than inflation, so money buys more. From 2020 to 2022 the minimum wage was adjusted only for inflation. Since 2026, people earning up to R$ 5,000 a month pay no income tax.

Left

With the left

The minimum wage policy came back in 2023: every year the minimum wage rises by inflation plus economic growth from two years earlier (since 2025, capped at 2.5% above inflation). And since 2026, people earning up to R$ 5,000 a month pay no income tax, while those earning over R$ 600,000 a year now pay a minimum tax.

Far right

With the far right

From 2020 on, the Bolsonaro government stopped applying the real-increase rule: through 2022, the minimum wage was adjusted only for inflation. The purchasing power of those living on the minimum wage stood still. In the 2018 campaign he also promised to exempt those earning up to five minimum wages from income tax, and did not deliver.

What is at stake

Every extra real in the minimum wage reaches millions of workers and retirees, and that money goes back into neighborhood businesses.

Far right

It made the news

Not opinion: the press recorded it. Stories showing what the far right did or tried to do on this issue.

Sources

Where the data on this page comes from.

  1. Lei 14.663/2023

    Law that restored the rule raising the minimum wage by inflation plus GDP growth.

  2. Agência Brasil

    Signing of the income tax exemption up to R$ 5,000, in November 2025.

  3. Agência Senado

    The Bolsonaro government planned the minimum wage with no real gain from 2020 on.

  4. Agência Brasil

    Minimum wage proposal for 2022 with no real increase.

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