Brazil medical salary floor proposal could cost municipalities R$ 25.9 billion

A proposal to establish a new minimum wage floor for doctors and dentists could cost municipal governments R$ 25.9 billion, according to estimates from the National Confederation of Municipalities (CNM).

Senate Economic Affairs Commission (CAE) recently approved Bill 1,365/2022, authored by Senator Daniella Ribeiro. The legislation proposes a floor of R$ 13,662 for professionals working a 20-hour weekly schedule, a significant increase from the current R$ 3,636. The implementation would occur gradually over three stages: 40% in the first year, 70% in the second, and 100% in the third.

The bill also includes annual adjustments based on the IPCA for the private sector and increases night shift and overtime premiums to 50%. While the text suggests the Federal Government should compensate states and municipalities through the National Health Fund (FNS), the CNM argues this will not mitigate the financial strain on local administrations already facing budgetary difficulties.