Brazil to lift minimum wage toward R$1,800 by 2027 under Lula plan

The Brazilian government led by President Luiz Inácio Lula da Silva is projecting a series of annual minimum‑wage increases that could raise the current floor of R$1,621 to about R$1,800 in 2027.

The forecasts rely on the National Consumer Price Index (INPC) and the rule that combines inflation with gross‑domestic‑product growth two years earlier. Recent spikes in the INPC to 5.3%—driven by El Niño‑related weather and higher food prices—push the estimate upward. Some longer‑term projections envision the wage reaching roughly R$2,020 by 2030, although fiscal‑rule limits on public‑spending growth may temper the final figure.

Raising the minimum wage would increase the purchasing power of low‑income workers and automatically raise benefits linked to the floor, such as unemployment insurance and the PIS/PASEP allowance. At the same time, each real of increase adds millions of reais to the federal budget, especially to Social Security.