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Brazil Ministry of Finance projects R$ 1,741 minimum wage for 2027

Brazil's Ministry of Finance has projected that the national minimum wage will rise to R$ 1,741 in 2027. Finance Minister Dario Durigan announced the estimate, which will be included in the Annual Budget Law Project (PLOA) to be submitted to Congress by August 31.

The projected figure represents a nominal increase of 7.4%, or R$ 120, compared to the current 2026 value of R$ 1,621. This new projection is R$ 24 higher than the previous estimate of R$ 1,717 presented in the government's Law of Budgetary Guidelines (LDO) in April.

The final value for 2027 will be determined in late 2026 based on the accumulated National Consumer Price Index (INPC) through November. The current policy combines inflation adjustment with a real gain of 2.5%.

This adjustment carries significant fiscal implications, as approximately 45% of Social Security benefits are indexed to the minimum wage. The increase affects various payments, including INSS pensions, the Continuous Cash Benefit (BPC), unemployment insurance, and salary bonuses.

Entities

Brazil · Brazilian Congress · Brazilian Ministry of Finance · Congress of Brazil · Darío Durigan · INSS · Luiz Inácio Lula da Silva · Lula · Ministry of Finance · National Congress of Brazil · National Social Security Institute · National Social Security Institute (INSS)

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