Brazil raises 2027 minimum wage projection to R$ 1,741

The Brazilian federal government has updated its projection for the 2027 minimum wage to R$ 1,741. This revised figure is an increase from the previous estimate of R$ 1,717 and represents a nominal rise of 7.4% over the current floor of R$ 1,621.

The calculation is based on the accumulated National Consumer Price Index (INPC) through November 2026, combined with a 2.3% real gain tied to the 2025 GDP growth. The government is currently estimating an INPC of 4.93% for the period.

This adjustment carries significant fiscal implications, as the minimum wage serves as a benchmark for INSS pensions and the Continuous Cash Benefit (BPC). The new projection is expected to increase federal expenditures by approximately R$ 9.9 billion in 2027. Additionally, Law No. 15,077/2024 mandates that real gains must respect the growth limits established by the fiscal framework.